Amazon Sees Marketplace Defections
of Amazon.com’s biggest customers
are leaving. The e-tailing giant,
which generates roughly a third of
its revenues from its marketplace,
has seen Buy.com, Gap and Macy’s go
off on their own in recent months.
Of course, there was Target and Toys "R" Us before that.
pulling away from Amazon because of fears the association puts them at a competitive
"We didn’t want to give them information on product pricing and
sales that Amazon could potentially use against us," Neel Grover, president
and CEO of Buy.com, told Internet Retailer. Buy.com left Amazon’s marketplace
Smaller retailers are also jumping the Amazon ship.
Richard Sexton, president
and founder of Carolina Rustica, which operates a single furniture store and
CarolinaRustica.com, told Internet Retailer that
there were problems with photos and product descriptions on the site. "Customer
expectations could be different from our ability to deliver."
said service had slipped. Where once he had a dedicated account manager, now
he had to send messages to an Amazon email, sometimes waiting up to two days
for a reply.
"We couldn’t pick up a phone a talk to anyone," Mr. Sexton
told Internet Retailer. "It was like an e-mail black hole."
faces issues with its marketplace while other large businesses such as Mastercard,
Sears and USAA open their own versions of online malls to consumers.
Discussion Question: Are the retailers leaving Amazon’s marketplace a sign of trouble at the e-tailer?