These newsletters reveal why Amazon suddenly cancelled thousands of regular merchandise orders from long-term suppliers in the past two weeks. Amazon's proprietary products include a variety of products. The company buys products directly from wholesalers and resells them in the traditional retail mode.
Other products come from third-party merchants who publish their products on Amazon.websiteUp, and pay Amazon a commission on each sale, similar to the Taobao model.
These two models complement each other to ensure that Amazon has a sufficient supply of essential goods, competitive prices, and a larger inventory than nearby stores.
A spokesman for Amazon declined to comment, but reiterated the company's previous statement: "We regularly review our sales partnership, and we may make changes when we see opportunities to provide customers with better choices, values and conveniences."
In recent years, Amazon has paid more and more attention to its third-party market. In 2018, more than half of all products sold on Amazon's Internet came from market merchants, whose revenue from services grew faster, twice as fast as that of Amazon's online stores.
Retailers such as Wal-Mart, Target and Best Bu are following Amazon's market model to increase online sales. EMarketer, a market research firm, expects Amazon's e-commerce revenue to reach $317 billion this year, accounting for 52.4% of total U.S. online sales.