According to the information received, the e-commerce giant, Amazon, has been going through an abrupt manner, affecting a lot of associated merchants.
During the last week, Bloomberg reported that Amazon has terminated orders with many merchants in order to force them to deliver the product directly to consumers on their own. It would become better for Amazon, as the merchants will have to manage the shipping and storage services of their own to effectively deliver the products. Through these services, vendors can generate additional revenue per product sale. Also, it evades the risk of purchasing inventory that is not meant for sale.
The reason behind launching this approach is due to the considerable slowdown reported in the organization’s other core businesses. Based on the Q4 2018 statistics, the company’s overall businesses have reached an annual market growth of 12.5%, which is considerably lower than the annual growth rate of 19.7% for Q4 2017. The revenue generated through its e-commerce business during Q4 2018 was $13.4 Billion.
Shifting the vendors’ trading management by themselves could help improve Amazon’s market growth statistics, specifically in the third-party selling services. At the same time, the company is exclusively influencing sales of its own trademark-tagged products, along with those being retailed utterly on its site. Through this act, the company will compete with its own customers in the e-commerce division. So, that’s why Amazon is stepping back in wholly managing the trade supply for the third-party vendors.
According to the unknown sources, Amazon’s CEO Jeff Bezos has collaborated with Yankees, an official baseball team, with an objective of acquiring the YES network from its key holder, Twenty-first Century Fox. The deal is not yet finalized, which could possibly take a couple of months. After the approval of the deal, the Yankees will become the major stockholder of the channel.