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How Amazon strong-arms fashion brands into becoming wholesale partners

Fashion brands are feeling squeezed by Amazon. The tech giant has been investing heavily in its fashion platform, so for individual labels to compete for customers they need to somehow sell through Amazon. This leaves them with two options: selling directly to Amazon through its wholesale model or becoming a third-party seller on Amazon’s marketplace.

According to this report in Digiday, many fashion execs believe neither option is good for them. As a third-party seller, fashion brands are better able to control their brand presence and pricing, but Amazon ensures that these listings don’t come up at the top of searches. Meanwhile, selling through the wholesale model means allowing Amazon to dictate inventory and set pricing. 

Digiday argues that Amazon has rigged the system to strong-arm them into becoming wholesale partners because it is the only way for them to get access to programs across the platform, such as its same-day shipping service, Prime Now; its try-bef0re-you-buy service, Prime Wardrobe; and its voice-activated styling service, Echo Look. 

[Image via Amazon]ES