Amazon Is Blocking Ads For Products That Lose Money

by MR Magazine Staff

Amazon is tidying up its bottom line, and wholesale vendors are feeling the squeeze. The Everything Store is telling its vendors that it won’t promote products that it takes a loss on as a result of storing and shipping fees, according to CNBC. In order to promote those products with paid advertising, vendors must cut the cost of the product for Amazon. CNBC obtained an email from Amazon to one of its vendors: “One or more of your products no longer qualifies for advertising because the sale of this product on currently results in a loss to Amazon.” The email goes on to say that the brand must “lower the product’s cost” to Amazon in order to become eligible for advertising again. The change comes as some analysts are expecting a slowdown for Amazon’s e-commerce business. “This year, we expect Amazon will generate roughly $440.83 billion in worldwide retail e-commerce sales, a 19.8% increase over 2018. Read more at Fast Company.