Over the past few months several of my colleagues wholesalers and manufacturers have stopped supplying Amazon.
They have also stopped their customers selling on Amazon and other third party websites.
The issue, I believe, is price erosion for Amazon and the image that having your premium brand on an auction website brings for Ebay.
I have been toying with the idea for a while as I can see the argument. I have also been at the receiving end of an angry buyer from a very large retailer telling me that she can’t sustain the RRP as Amazon is selling at a much lower margin.
My argument, in view of the shop’s location, is that her brand can sustain a premium price.
My next argument was the fact that she is selling Melissa and Doug products in her shop.M&D is in Tesco, Amazon and TKMaxx most weeks. The discussion was over and I am glad to report that this retailer is still buying from us!
Now going back to Amazon, yes I do business with them. I would love to be in a position to emulate my colleagues to help my smaller retailers but I feel that I cannot ignore a retailer who is representing a sizeable amount of my turnover who pays on time for goods we dispatch on a weekly basis.
Yes I would love to be able to control prices to make sure that all retailers can make a living but this is highly illegal and therefore impossible.
Maybe Amazon will soon see the writing on the wall, start paying their fair share of taxes in UK so will have to put their prices up.