Amazon Cutting Off Select Vendors

Housewares suppliers are among vendors cut from the Vendor Central platform as part of a review targeting vendors that, among other potential criteria, register sales of $10 million or less on the platform, HomeWorld Business has learned.

Amazon is looking to push deactivated vendors to its Seller Central marketplace, according to vendors and published reports.

One housewares supplier told HomeWorld Business that Amazon earlier this week had deactivated its vendor codes without notice because of Vendor Central sales of less than $10 million. When the supplier contacted Amazon, the e-tailer returned a correspondence that stated “a review is being done across the entire vendor platform and currently your vendor codes have been deactivated. At this time, no orders will be placed for your products. Please continue to monitor your vendor accounts for any future correspondence on purchase orders or updates from the business team.”

HomeWorld Business learned that at least one other housewares supplier had its vendor codes deactivated. A home furnishings vendor that does business with Amazon but had not had its vendor codes deactivated, said Amazon is determined to become more selective about who can participate in its Vendor Central operation.

The full criteria for deactivation is not yet clear, although the deactivated housewares vendor stated Amazon had maintained that the review was for vendors who are doing less than $10 million in sales with it.

A report on March 6 stated that “thousands” of Amazon vendors didn’t receive their weekly purchase orders from the e-tailer. The report cited executives from agencies that work with clients to support their Amazon businesses. Digiday cited its sources as saying companies that had their vendor codes pulled tended to be businesses doing $10 million or less in annual Amazon sales; ones that don’t have assigned Amazon vendor managers; and, in many cases, those that specialize in bulkier items that have high shipping costs.

Amazon at post time did not respond to a request for comment about the vendor deactivation reports.