Big Tech
Amazon to Push Out Europe Middlemen in Latest Cost-Cutting Move
- Company plans to stop buying from distributors next year
- Move could help Amazon curb losses in international unit
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Amazon.com Inc. warned distributors in Europe that it will cease ordering from them next year in favor of buying products directly from brands, an effort to stem losses by cutting out some middlemen.
The e-commerce giant notified vendors that the changes would begin as early as January, according to an email reviewed by Bloomberg. The message encourages those affected to sell goods on Amazon’s marketplace, which lets the company take a commission on each sale and charge additional fees for logistics and advertising without buying inventory directly.