Amazon's Marketplace Dilemma: Distributor or Storefront?

In this segment of FreightWaves Now, host Kaylee Nix introduces Mike Baudenistel, a host and writer for "The Stockout," a community focused on CPG (Consumer Packaged Goods) and retail. They discuss Amazon's significant influence in both the retail and CPG spaces, particularly highlighting recent legal and operational updates.
Baudenistel explains Amazon's complex role as both a distributor and a marketplace, which is central to a recent lawsuit. Amazon holds about a 5% share in CPG sales, although this can rise to 20% during events like Prime Day. The discussion touches on regulatory challenges Amazon faces, such as potential classification as a distributor by the U.S. Consumer Product Safety Administration, which would make Amazon liable for the safety of products sold by third-party marketplace sellers. To mitigate risks, Amazon now requires third-party certification for certain product categories.
Additionally, they talk about new inventory-related fees imposed by Amazon on sellers to ensure high service standards, despite causing confusion among sellers. These changes are part of Amazon's efforts to maintain its service quality while managing inventory efficiently.
The segment concludes with a preview of "The Stockout," where Baudenistel will review recent retail earnings, including positive results from Walmart and a decline in Home Depot's sales, providing insights into the current retail landscape.