Amazon: Dealers Are "Not To Be Seen" Brand "Down To Meet"

as everyone knows, Amazon It is an open business platform, and its founder, Bezos, also holds the idea of an open market. The platform not only allows all brands to sell their products, but also allows dealers to resell others' products. Now, however, there are signs that Amazon is "pressing" dealers to resell third party products, and the brand preference has been signed for signing direct cooperation agreements with them.

For example, Levi's and Amazon signed a direct sale cooperation agreement. From then on, no third party distributor can sell Levi's products on Amazon platform. If the dealer wants to upload Levi's's products, Amazon's background system will automatically block it. Levi's will benefit from the big tree next to Amazon. Its products are in a more favorable display position, and consumers are more likely to search for its products.

Critics say Amazon's strategy is to force companies to break off partnerships with online distributors and directly cooperate with Amazon.

　 Dealers were left behind by Amazon

According to recent reports, a recent survey shows that Amazon offers preferential treatment to direct sellers, while dealers who resell third party products are left behind.

L2, a market research firm, said Burberry, Levi's and other companies have reached a special agreement with Amazon, which can enjoy preferential treatment when they sell goods to consumers on Amazon platform. Driven by Amazon CEO Bezos, Amazon began to restrict the sale of third party merchandise sellers, that is, resale of other goods sellers, and let some direct selling brands unimpeded on the Amazon platform.

L2's research reveals the relationship between Amazon and its platform sellers from a unique perspective. These direct selling brands are closely related to Amazon and enjoy more preferential treatment, such as their products are more conspicuous in the Amazon platform, so it is easier to attract the attention of online shoppers. On the contrary, those brands that do not form such a partnership with Amazon can also continue to resell their products on the platform, but they can not get preferential treatment.

Internationally known Clothing brand Ralph Lauren No direct cooperation agreement has been reached with Amazon, allowing distributors to distribute their clothing and accessories on the Amazon platform, with a total of more than 9000 varieties. By contrast, Levi's has signed a cooperation agreement with Amazon. If consumers want to buy Levi's's clothing on Amazon platform, they can't buy it from the dealer, and they can only buy it from Amazon's direct selling store.

The L2 research company registered a dealer account on Amazon platform, then tried to upload Levi's product pictures, but Amazon's backstage system stopped it.

L2 will publish a report entitled "great white shark" to reveal its findings on Amazon platform. However, Amazon spokeswoman Erik Fairleigh declined to comment on the matter, and Levi's, Burberry and Ralph Lauren declined to comment.

Amazon is so secretive that it does not want to reveal any details of its agreements with its brands, and is reluctant to mention the relevant property data. Mclean, a researcher at L2, said that the provision of more favourable conditions to cooperative suppliers is the privilege of Amazon, but this puts other companies in an awkward position, as if they have no choice but to become Amazon's partners.

In general, Amazon is now playing a pivotal role in the US e-commerce market, accounting for about 1/4 of total retail sales. This year, US retail sales will reach US $294 billion and will exceed US $414 billion by 2014. Against this background, Amazon's every move will stir the whole market.

　　 Amazon's tough attitude

Amazon's founder Bezos has been known for his tough attitude toward platform sellers. A former Amazon executive said that the names and titles of book publishers who did not advertise on the Amazon platform would be "frozen", so online shoppers would have difficulty finding them on Amazon platform. Because of this, Amazon is also involved in disputes with Hachette Book book publishers.

"Amazon is in a very prominent position in the list of companies that abuse their suppliers," said Sucharita Mulpuru, an analyst at Forrester.

In order to study Amazon's dealer policy, L2 used software to collect 30 thousand Amazon ranking records of 315 brands. These brands cover clothing, beauty, furniture, jewelry, daily care products and other industries. It studied the ranking of companies that signed direct sales agreements with Amazon, and also studied the ranking of companies without such cooperation, eventually finding some tricky problems.

　 Brands get preferential treatment on Amazon platform

L2's 53 page report concludes that companies that have reached direct supply agreements with Amazon will receive preferential treatment. Suppliers in cosmetics, fashion and other consumer goods are also favored. For example, their products are more likely to be seen or searched by online shoppers, showing that the pictures they exist are more attractive and more conspicuous.

In this case, many companies are considering whether to launch a direct sale agreement with Amazon because they do not seem to have much room for choice.

Analyst Galloway believes Amazon has a huge influence in the global economy. Although Amazon has implemented an unfair business policy, he does not recommend that the authorities directly intervene in Amazon's business. Because Amazon's success is due to its superior performance and efficient delivery system.

According to statistics, 40% of the commodities sold on Amazon platform come from the so-called "gray" market, such as Louis Weedon, Estee Lauder Cos and other brands do not cooperate with Amazon, but on Amazon platform can search thousands of products information of these brands.

It is understood that dealers resale third party products have been tense with Amazon. Since 2000, Amazon has allowed third party distributors to sell products on the platform in order to expand their product categories and lower prices. Amazon draws 15% commission from each order.

Bezos has always adhered to the concept of open market. However, recent signs indicate that Amazon is willing to suppress distributors and reduce commodity categories in order to establish direct selling cooperative relations with consumer goods companies such as fashion and cosmetics. Many brands that cooperate with Amazon can no longer allow dealers to resell goods on the platform, such as Levi's, Burberry, L'OREAL and so on.

L2's report says Burberry has sold commodities directly to Amazon since last year, and its products are published in the Amazon Luxury Beauty shop, where perfume is placed on the website. Since then, third party distributors can not publish and sell Burberry products within the specified range on Amazon platform.

Similarly, L'OREAL has also restricted distributors from selling their Kiehl products on Amazon platform.

Procter & Gamble has established a direct cooperation relationship with Amazon, and its Tide laundry detergent and other products have a better display position on Amazon's page, which is more advantageous than the Unilever's competition.

Armando Branchini is the co founder of a luxury consulting firm in Milan, Italy. He said some company managers are working with Amazon. These companies share a common feeling that Amazon is under pressure. Third party distributor And push them through direct cooperation with Amazon through this way.