Increased Competition Pushes Amazon to Purge of Small Suppliers

The video discusses Amazon's business model, highlighting its retail and marketplace components. Amazon is shifting smaller vendors from a wholesale model to a marketplace model, where vendors sell directly to customers. This change requires vendors to adapt by learning new skills related to advertising and customer engagement. The video also touches on potential antitrust concerns due to Amazon's market influence, though it is not expected to significantly impact regulatory views. Investors view the shift positively due to increased profitability and reduced risk for Amazon.

What are the two main components of Amazon's ecommerce business?

• Retail side and marketplace model

• Wholesale and direct sales

• Subscription services and retail

• Advertising and logistics

What is Amazon's marketplace model similar to?

• eBay or consignment shops

• Traditional retail stores

• Direct-to-consumer brands

• Subscription-based services

What is Amazon's response to the speculation about reducing vendors?

• They are planning a large-scale reduction

• They are increasing the number of vendors

• They review relationships individually and deny large-scale reduction

• They are focusing solely on wholesale

What challenge might vendors face if Amazon shifts them to a marketplace model?

• Learning about advertising and customer reviews

• Dealing with increased shipping costs

• Handling international taxes

• Managing physical store locations

Why does Wall Street view Amazon's shift to a marketplace model positively?

• It decreases Amazon's profitability

• It reduces Amazon's market share

• It is seen as a continuation of increasing profitability

• It increases Amazon's risk