Amazon Protects Their Whole Foods Market Brands from Retail Arbitrage

Chasing The Points

Administrator
Staff member
#1



In June 2017, Amazon announced their desire to purchase Whole Foods Market for $13.7 billion. When the Federal Trade Commission approved the deal, days later Amazon announced they would lower prices on many products.

Amazon Stops Retail Arbitrage of Whole Foods Market brands


It’s interesting to read that days after the acquisition that Amazon restricted all sellers of the Whole Foods Market brands like 365. In fact, Amazon was so kind to reimburse sellers who had Whole Foods products at an Amazon fulfillment center.

From SusanH@SellerSupport in this thread on Amazon:


Hello TigerWares Unlimited,

It is true that third party sellers will no longer be able to sell the Whole Foods brands, which includes as many as 24 different brand names.

It is also true that any inventory currently in Amazon fulfillment centers will be credited for the replacement value, minus FBA fees.

We do have a path for sellers to follow if they are incorrectly impacted and their product is not associated with the Whole Foods brands. Please contact Seller Support if you need assistance.

I hope this helps clarify the situation.

-Susan


Amazon Prime 365 Everyday Value Brands


Most products shown as of writing this post are mostly Prime pantry. Clicking into a lentil listing we see that Amazon is the only seller



Amazon 365 Everyday Lentil Blend


Additionally, if we tried to sell this Lentil package, ASIN B074H5LYDF, we will see this in our Seller Central portal:



Amazon 365 Everyday Lentil in Seller Central



Amazon Acts In Their Best Interests, Not Yours



Just remember that while you own your business selling products on Amazon utilizing their platform. You have no control. Amazon? They’ll do what they need to do in their best interests and making sure the customer will be happy at the end of the day. End of story.

Continue reading...
 

GRiZ

Level 2 Member
#3
Wow, I guess this was kinda inevitable though. I think the writing's on the wall for amazon as arbitrage in general though, As they branch out into more and more spaces they're not gonna want any competition.
 

mec

Silver Member
#4
They only support sellers and service providers when it's in there strategic interest to do so.

When they are trying to break into new territory they will provide limitless opportunity and it will last as long as they don't benefit from taking it away.
 
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