In what could represent a massive change in the dynamics of e-commerce Amazon is sending out signals that it will deemphasize its direct online retail business in favor of more product sales going through its third-party Marketplace model. Cutting off smaller vendors and reports from ex-employees and vendors alike suggest this could be happening as Amazon looks to help its cash flow by not taking ownership of product inventory and just collecting a commission fee on sales by others.
If this happens, it would seriously change the way online retailing works and could cause havoc for vendors who have come to depend on Amazon’s business.
The customer? They may not even notice.
Here’s my take on Forbes.com: