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So in the past, why did Amazon purchase from the smaller guys, and didn't go straight to the manufacturer ?

• binarysolo 8y ago
  For prospecting purposes - it's only worth it to engage with manufacturers if you do X million of dollars on their product, so why not have a smaller vendor do all the legwork to grow the listing, prove the product, then cut them out. Source: mid-sized Amazon 1P/3P vendor, mid-millions rev.
• zebrafish 8y ago
  Manufacturers have large minimum order quantities, are slow to integrate with, and have business policies like chargebacks, business rules, fees, etc. that the retailer will have to negotiate around. The little guys have none of that and will bring in tons of traffic to the site, making it a more attractive option for manufacturers who will bend their rules to get a piece of the pie.