Danilo de Castro Alvares, a retail media manager at Acadia, has noticed a similar trend with his clients. One brand he works with sold over $6 million of products via Amazon’s 1P platform but has been seeing fees and other costs consistently go up. “If shipped revenue is less than $10 million, it’s not big enough [for Amazon],” he said. Those companies, he explained, are considered “smaller vendors.” As such, “[Amazon] will likely squeeze you.”
Alvares also has seen clients unable to talk with someone on Amazon’s 1P team. “We even called one of them Jimmy Hoffa,” he said. “When he appeared it was to pitch Amazon Vendor Services,” he said — that is, trying to get the 1P brands to spend even more on other facets of the platform.
Read the full article: "Smaller brands continue to feel pushed out of 1P as margins get squeezed." in Modern Retail, published on June 1, 2023.