Nobody has full described what's going on, so let me try. There are four categories of things sold on Amazon: - A) Amazon house brands - B) Amazon retail - C

Nobody has full described what's going on, so let me try. There are four categories of things sold on Amazon: - A) Amazon house brands - B) Amazon retail - C) 3rd party seller, fulfilled by Amazon (FBA) - D) 3rd party seller, fulfilled by Merchant (FBM) Amazon house brands are the things like Amazon Basics, or a host of other brands that are owned by them even though they're not explicitly labeled as such. Retail is the traditional retail model described by last user, Amazon buys inventory from other companies and then handles sales & fulfillment. FBA is sort of the consignment model, where Amazon doesn't own the inventory but they handle fulfillment. FBM is basically the Ebay model - Amazon is just facilitating the marketplace, taking customer payment etc, but the merchant is responsible for shipping/logistics. They're going to scale back the number of companies they buy from for retail (B), and those companies will have to use C or D or stop selling on Amazon altogether.