Amazon Wants To Help International Factories Sell Directly To You

By Laura Northrup February 9, 2016

(Corey Templeton)

A few years ago, Amazon made a prediction that came true: shoppers were about to use Amazon more for commerce across oceans and borders, ordering easily from all over the world. Yet experts at Amazon must have been wondering how they could help international merchants along, and make more money while they were at it. One possible solution: becoming a freight and warehouse operation for manufacturers abroad.

Bloomberg got hold of a plan from 2013 that was presented to Amazon executives that proposed an Amazon-run infrastructure that would handle merchandise pretty much from the doorstep of a factory in China or India to the doorsteps of customers in North America and Europe.

Amazon has been putting in place a freight network, which most people assume is meant to replace or supplement their current relationships with UPS, FedEx, and other local carriers. Instead, the idea is to cut out wholesalers entirely, with the role of wholesaler and bulk shipper going to Amazon.

Instead of selling items to a wholesaler or shipping items to an Amazon warehouse, a manufacturer would have it picked up by Amazon, transported to a port and then a warehouse, and shipped directly to customers in the target country using Fulfilled by Amazon service.

“The ease and transparency of this disintermediation will be revolutionary and sellers will flock to FBA [Fulfilled by Amazon] given the competitive pricing,” the 2013 report to Amazon executives said.