More 1P vendor terminations are doing the rounds: Is this the end of #Amazon Vendor Central?

Let's take a look at the facts 👇

Vendors receiving notices have one thing in common:

❌ They have no/low sales growth
❌ Their Net PPM is in the single digits
❌ Their annual revenue is between $0-5MM
❌ They don't have a designated Vendor Manager
❌ They don't invest in the Amazon Vendor Service

It's easy to see why Amazon is terminating these brands:

After onboarding thousands of new vendors during the pandemic, many have fallen short of performance expectations.

Managing vendors is expensive for Amazon. Buying inventory that doesn't sell is even more expensive. If a brand doesn't return $10MM+ in profitable sales, Amazon won't focus any resources on it in 2025.

𝗦𝗼 𝗡𝗼, 𝘁𝗵𝗶𝘀 𝗶𝘀 𝗻𝗼𝘁 𝘁𝗵𝗲 𝗲𝗻𝗱 𝗼𝗳 𝗩𝗲𝗻𝗱𝗼𝗿 𝗖𝗲𝗻𝘁𝗿𝗮𝗹.

But it's no longer a place for small family businesses.

Instead, it's becoming a playground for corporate brands again.