Foreign media reported that Amazon recently took a control measure against popsocket and other brands. Popsocket quits indignantly, ending a partnership with Amazon for more than two years at 11th.
Mobile phone accessories brand dealers leave, ending the two-year cooperation with “sister husband”
For several years, popsocket has seen Amazon as an integral part of its business. The startup’s popular round device can be used as a grip or a bracket attached to a mobile phone to sell accessories to Amazon at wholesale prices, and Amazon sells it to customers at retail prices.
But over time, popsocket believes its relationship with Amazon is becoming more and more singular. Chief Executive David Barnett said that Amazon usually asks for these unnegotiable requirements, such as lowering prices or spending more on marketing. He blamed the responsibility of the Amazon retail team’s operating structure, not the employees themselves. It thinks that sometimes employees are like a robot.
Barnett “fed enough” two months ago and decided that the company would no longer sell products directly to Amazon. PopSockets will still sell its products on Amazon, but it is sold through a distributor called iServe, one of the largest distributors on the platform.
Barnett’s idea is that the agreement with iServe will provide PopSockets with a partner that is more in line with the terms of both parties.
But my brother-in-law seems to have other ideas. Amazon informed Barnett on a new policy that iServe will be banned from selling popsocket devices on Amazon. Looks like completely broke the way out of popsocket!
Barnett also knows that sellers that have nothing to do with PopSockets can still be sold on Amazon.
Therefore, in early November, PopSockets and Amazon’s two-year partnership ended.
“Jeff Bezos really knows what happened here?” Barnett asked.
Amazon may push One Vendor’s new internal system to put pressure on the brand
According to interviews with consumer brands that help brands sell merchandise at Amazon and industry analysts, issues like Amazon and PopSockets are not unique, and other brands have the same experience as PopSockets.
According to people familiar with the matter, in the past few months, Amazon has put tremendous pressure on brands in different product categories to more control the content, location and manner of products they sell in all stores. An obvious goal is to better compete with other retailers by controlling commodity prices.
It is said that these initiatives are also a prelude to the new internal system called One Vendor that Amazon has not yet launched. This new initiative essentially brings together big brands and independent sellers through the same back-end systems to improve the consistency of Amazon’s shopping experience for the public.
It’s worth noting that before launching this new initiative, Amazon has notified some brands that some of their businesses on Amazon will be closed with a notice period of only 30 days. These brands range from consumer goods to fashion accessories.