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 implications could Amazon's shift to a marketplace model have on competition among small vendors?

In what ways might this shift affect Amazon's profitability?