Buy Box, end of wholesale: How to prepare for Amazon’s new distribution strategy

In early March 2023, Amazon announced that it would stop sourcing from wholesalers. At the end of December 2022, the business had agreed to review the "Buy Box" mechanism, a key engine for sales growth that was criticised by the European Commission for anti-competitive practices. Lawrence Taylor, President of the specialist agency Retail 4 Brands, outlines how retailers can adapt and take advantage of these two major changes.

Through Contributeur externe. Published on 27 March 2023 à 10h17 - Update on 03 April 2023 à 15h30

In the last 3 months, Amazon announced two major changes to radically alter how merchants deploy a distribution strategy on the Amazon marketplace.

-On 20 December 2022, the European Commission signed an agreement with Amazon, which proposed commitments to end anti-competitive practices across the 27 E.U. countries.

-In early March 2023, Amazon announced that it would stop sourcing from wholesalers for the e-commerce business. The U.S. online retailer told European sellers that between April 2023 and January 2024, it would source directly from brands. However, wholesalers can continue to sell through the marketplace. As an internal communication, Amazon explained that this approach would allow cost control and “keep prices low for consumers”.

End of wholesale

Former Chairman Jeff Bezos declared “Your margin is your opportunity”,…