Is Amazon trying to drive small companies out of business?
I work for an online retailer with about 50 employees. We sell both through our ecommerce website and in marketplaces (Amazon, eBay, Buy.com, Overstock, etc.)
We do a lot of business on Amazon. A couple weeks ago, Amazon contacted us wanting to buy our stock at a great volume and a a generous discount. What they didn't realize, until our conversation with them, is that we are not the manufacturer/wholesaler. It was an "oopsie" moment for them.
At the end of last week, we started hearing from our suppliers (the actual manufacturers) that Amazon had contacted them directly wanting to buy a lot of their stock at a steep discount. What this means for their clients (such as us) is that our orders may not get filled for months because the stock will be going to Amazon. Most of the suppliers we have heard from have said they are still in negotiations and have not made a decision. One supplier jumped right on it. One of our major suppliers has said no (character limit - cont.)