Retail

Amazon Snatches Up U.S. Marketplaces For Expansion

Just when its competition thought it was safe to go back into the eCommerce waters, Amazon pulls another trick out of its bag.

The online retail giant is starting to build up its global inventory through various marketplaces in the United States. Amazon shared with thousands of U.S. marketplace sellers that it is interested in buying all of their inventories at full retail price. Its Fulfillment by Amazon (FBA) sent the email asking marketplaces to sell their goods. “For a limited time, there will be no additional fees, and we will purchase inventory from you at your local marketplace offer price,” the company’s email said.

Once these deals are underway, Amazon plans to sell those products through its website to consumers around the world.

To have their items stored in Amazon’s fulfillment centers and use its supply chain operations, marketplaces have traditionally been required to pay a fee. Currently, Amazon’s FBA offering has grown 70 percent and carried out more than 2 billion deliveries.

An Amazon spokeswoman recently discussed the reasons behind this move. “When items are unavailable in a particular geography, we provide customers with selection from another marketplace. This offers customers a wider selection of great brands and helps sellers increase sales.”

As the eCommerce giant moves forward, it may be safe to say that there’s no place around the world that won’t know Amazon’s name. Through strategic moves over the last few years, Amazon has positioned itself to become the leading force in the eCommerce space.

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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