Majority of Amazon’s 1P Vendors Makes Less than $1.5M🪠

💡 Amazon's Major Vendor Purge

Amazon has announced it will terminate numerous 1P vendor accounts with annual sales under $5M.

The termination will take effect on November 9th, 2024, just ahead of the holiday season.

This move affects thousands of smaller brands that may rely heavily on Amazon’s platform.

🛍 Many Small Vendors Remain Below $1.5M

Despite the recent purges, many 1P vendors with under $5M in sales still remain on the platform.

Around 80% of these smaller vendors make less than $1.5M annually, highlighting their low profitability.

Amazon is keeping some of these accounts but continues to evaluate based on strategic value.

Can small vendors survive Amazon’s sweeping 1P vendor changes?