Amazon claims it is facing “significant” changes to its delisting process, as it continues to face scrutiny by the Grocery Supply Code of Practice.
According to the Fresh store owner, the changes will apply specifically to its grocery vendors, resulting in the company taking into factors such as the overall economic impact on a business from delisting.
The move comes as Amazon’s automated systems have operated under the ‘CRAP’ (cannot realise a profit) policy, which has been used to delist brands not seen as “financially viable”.
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As a result, Amazon said claims the new commitment would ensure human intervention to prevent products being delisted.
According to the retailer, it was implementing a new system, which offers suppliers “an holistic approach”. It also rewards firms for exclusivity and the size of their business with Amazon, but also protecting smaller suppliers, it revealed.
The changes are the latest announcement from Amazon, which has been policed by Adjudicator Mark White since March this year, having surpassed the Competition & Markets Authority’s threshold of £1 billion in grocery sales.
“Amazon serves as a fantastic shop window for grocery suppliers and we strive to build successful long-term relationships,” Amazon code compliance officer Alex Simpson told The Grocer.
“We will continue to listen and work with our suppliers to improve our processes and enable fantastic grocery products to reach millions of UK customers each week.”