Amazon has indicated that its reason for opening up the new online store is to better help to promote the small entrepreneur and cottage industries, indicating that these types of companies tend to become lost among the major corporations across its e-commerce platform.
The companies that will be featured in the first iteration of the new store had to go through a vetting process. Those selected represent a significant chunk of Amazon’s clients, totalling 20,000 small enterprises. Up to one million products from these smaller players will go on sale. Part of the selection process was based on ratings issued by customers.
The move could also be attempt by Amazon to pass the virtual olive branch to smaller companies, in light of the e-commerce giant being accused of putting other companies out of business. Small, independent book shops, for example, have been most under threat from Amazon across the past decade. Earlier this year Amazon published its “Small Business Impact Report“. This report claimed that “small and medium-sized businesses selling on Amazon have created more than 900,000 jobs.”
For the next wave, Amazon will open small business stores in Germany and in the U.K. With the U.S. launch, Amazon Storefronts will be promoted on the front page of Amazon.com. The new initiate will also be supported through television advertising. The adverts will profile some of the small businesses.
Commenting on the new venture, Nicholas Denissen, VP for Amazon in a statement (quoted by TechCrunch): “We’ve created a custom, one-stop shopping experience for customers looking for interesting, innovative and high quality products from American businesses from all across the country.”