Amazon has announced a significant move to terminate certain vendor relationships, and the notice has been widely circulated online in the past 24 hours.

The terminations, effective November 9th, 2024, suggest that Amazon will continue to hold inventory from the affected brands through the end of the year, with sales ceasing in Q1 2025.

While there is much speculation about the scope of the brands affected, estimates suggest it impacts brands with sales of less than £5-£10 million per year. This decision could affect thousands of brands, marking a pivotal turning point for small and medium-sized enterprises.

If you're a 1P brand that received this notice, it is crucial to act immediately to address your sales gap for Q1 2025. For 3P brands whose top competitors are small to mid-sized 1P brands, there is a significant opportunity to capture market share in 2025 as these 1P brands face major disruptions.

Mark September 9th, 2024, as a day when Amazon changed forever.

If you find yourself in this situation, consider reaching out to PrimePath Consultants. Even if you have an internal team, a consultant can provide specialised expertise, strategic insights, and an external perspective that can be invaluable during times of change and disruption. Prime Path Consultants can help you navigate this transition smoothly and position your brand for success in the evolving market.

Contact us today to ensure your brand remains competitive and resilient in the face of these industry shifts.