Member Brief: Amazon Pulls The Rug

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With the exception of a few larger volume sellers, Amazon is shifting away from the retailer model by limiting their wholesale partnerships to the most impactful partners. The rules of the consumer economy are changing faster than ever. Some of these changes have had dire consequences, especially for independent retailers and challenger brands. This week, Amazon announced that they have suspended an extraordinary number of lower volume sellers in the Direct Fulfillment (dropship) program.

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Member Brief: The Target Report

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Target is in a three-way battle against Amazon and Walmart; the Minneapolis-based retailer’s opponents couldn’t have more contrasting strategies. Each retailer’s strategy reflects their differentiated effort to Conserve Attractive Profits, a value chain law posed by Harvard Business School professor and author Clayton Christensen.

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Member Brief: A Familiar Strategy

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Amazon operates in such a way that it’s no longer just a business, it’s a generational institution. The Bezos-led retailer lords over the industry with an astounding 300 million shoppers, each month. For a vivid picture, there are 325 million Americans and 110 million Amazon Prime subscribers. Amazon Web Services (AWS) powers a disproportionate number of government and digital publishing websites. And on top of these figures, Amazon is the number two employer in America with nearly 600,000 workers on its payroll. Only Walmart employs more (2.5 million).

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