The Amazon 3rd Party Seller Ecosystem Might be the Most Important Thing Since the iOS App Store

Third-party seller acquirers will continue to be popular because many of the large consumer packaged goods companies aren’t as good at selling online, according to Jason Stoffer, general partner at Maveron, a venture capital firm investing in consumer products and services.  “These aggregator companies are good at the online perspective with d... See more

On the other side, the millions of smaller vendors, EGMs solve the challenge of selling into large corporations. 

Many investors saw the "death blow" to Amazon coming when the big established retailers started selling online. So while Amazon was born out of an initial appreciation for the growth of the internet, they stayed on top with execution. The ability to execute in an internet-native model vs. the transition big-box retailers were trying (and failing) t... See more

With the exception of a few larger volume sellers, Amazon is shifting away from the retailer model by limiting their wholesale partnerships to the most impactful partners. The rules of the consumer economy are changing faster than ever. Some of these changes have had dire consequences, especially for independent retailers and challenger brands. Thi... See more

Amazon is a two sided marketplace, made up of:

1. Buyers


2. Sellers

“Yeah, no sh*t” – you, probably.

What you might not know is that over 60% of the stuff sold on the platform doesn’t actually come from Amazon, but independent sellers. ️

But it wasn’t always like this...

• Between 1994 and 2000, everything on the site was sold by Amazon


• In that time th

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Amazon is at a crossroads and like the brands who depend heavily on Instagram or Facebook.com, the rule of online retail is multichannel diversification. The product manufacturers and brands who keep up an even-handed approach to acquisition will not be impaired when one channel determines their fates for them.