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Amazon Sees Marketplace Defections

Written by George Anderson
Some of Amazon.com's biggest customers are leaving. The e-tailing giant, which generates roughly a third of its revenues from its marketplace, has seen Buy.com, Gap and Macy's go off on their own in recent months. Of course, there was Target and Toys "R" Us before that.

Some are pulling away from Amazon because of fears the association puts them at a competitive disadvantage.

"We didn't want to give them information on product pricing and sales that Amazon could potentially use against us," Neel Grover, president and CEO of Buy.com, told Internet Retailer. Buy.com left Amazon's marketplace in October.

Smaller retailers are also jumping the Amazon ship.

Richard Sexton, president and founder of Carolina Rustica, which operates a single furniture store and CarolinaRustica.com, told Internet Retailer that there were problems with photos and product descriptions on the site. "Customer expectations could be different from our ability to deliver."

He also said service had slipped. Where once he had a dedicated account manager, now he had to send messages to an Amazon email, sometimes waiting up to two days for a reply.

"We couldn't pick up a phone a talk to anyone," Mr. Sexton told Internet Retailer. "It was like an e-mail black hole."

Amazon faces issues with its marketplace while other large businesses such as Mastercard, Sears and USAA open their own versions of online malls to consumers.

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