Is Amazon a Distributor? The U.S. Government May Determine (2024)

FAQs

Is Amazon a Distributor? The U.S. Government May Determine? ›

The commission determined Amazon does fall within definition of a “distributor” and consequently have a safety responsibility over third party sellers using its platform.

Amazon has long fought the distributor classification, citing its unique business model for online sales. While some of the goods Amazon sells come from its own inventory like brick-and-mortar retailers do, nearly two-thirds of sales on Amazon.com are by third-party sellers.

Amazon.com, Inc. Federal Trade Commission.

Subsidies Awarded to Amazon: over $6.7 Billion and Counting! This database tallies state and local economic development subsidy deals given to Amazon.com, Inc. for its warehouses, data centers, and film productions, and to its subsidiaries such as Whole Foods Market, Zappos and Audible.

Amazon (AMZN) uses both distribution channels. It uses a direct distribution channel when it sells products to consumers directly. The indirect channel comes into play when consumers on Amazon's site buy products from independent retailers and those retailers must fulfill deliveries.

Amazon.com, Inc., doing business as Amazon (/ˈæməzɒn/, AM-ə-zon; UK also /ˈæməzən/, AM-ə-zən), is an American multinational technology company, engaged in e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence.

No single company owns Amazon. It's a publicly traded company owned by its shareholders. Founder Jeff Bezos is the company's largest shareholder. He still owns 9% of its outstanding shares.

The role of an Amazon agency is to help business owners make the right decisions to support their business on Amazon. They also help to create, optimize, and execute product listings and storefronts to generate the most traffic.

Our program provides access to the following online platforms: Amazon Business, e-Procurement Services, Fisher Scientific, G-Commerce, Grainger, Noble Supply & Logistics, Pacific Ink, and Staples.

Who handles Amazon complaints? ›

Phone: Amazon's customer service number is 1-888-280-4331.

On July 30, 2024, the Consumer Product Safety Commission (CPSC) issued a Decision and Order against Amazon, finding that Amazon is a "distributor" of third-party products, as defined by the Consumer Product Safety Act (CPSA), and therefore bears legal responsibility for recalls of products sold on the platform.

While many industries receive government subsidies, three of the biggest beneficiaries are energy, agriculture, and transportation.

Amazon's effective federal income tax rate was 6.1 percent in 2021, with $35.1 billion in U.S. earnings and $2.1 billion in federal income taxes. ExxonMobil's effective federal income tax rate was 2.8 percent in 2021, with $9.3 billion in U.S. earnings and $236 million in federal income taxes.

Distributors buy products or product lines, warehouse them, and resell them to retailers or directly to the end customers. As a channel partner, distributors essentially form a link in the supply chain between the manufacturer and the customer.

Amazon.com is a Seattle, Washington–based e-commerce and cloud computing giant whose humble beginnings can be traced to founder Jeff Bezos's garage, where he began selling books on the still-emerging World Wide Web.

A distributor works closely with a manufacturer in order to sell more goods and gain better visibility on these goods. Distributors find wholesalers who will resale their products. A wholesaler works more closely with retailers to match their needs through buying products in bulk at a discount.

Distributors are businesses that buy products from manufacturers and then resell them to retailers or to consumers directly. For example, food distributors buy directly from farmers and then sell to your local supermarkets.