Proactive Investors - Run By Investors For Investors

Amazon's new online portal called 'Storefronts' shines spotlight on small businesses

The online store features products from more than 20,000 mom-and-pop-style businesses across all 50 states
Amazon warehouse
More than 300,000 small and medium-sized businesses in the US sell goods via Amazon

The e-commerce behemoth (NASDAQ:AMZN) is attempting to play nice with small and medium-sized businesses with the introduction of ‘Amazon Storefronts,’ a new online store that promotes their goods.

Kicking off its efforts in the US first, Amazon’s new online store showcases products from over 20,000 mom-and-pop-style businesses across all 50 states. Customers can browse for goods via Storefront’s 25 categories, which include pet supplies, apparel, electronics and jewelry.

The move comes with advantages for Amazon as featuring these companies is likely to entice other businesses to set up shop on Amazon. It also enables Amazon to say it supports struggling retailers at a time when it is coming under attack for putting tremendous commercial pressure on its brick-and-mortar rivals by undercutting their prices.

Read: Amazon muscles into the business of selling live Christmas trees

To support the launch of its new online portal, Amazon is unveiling its first-ever national TV commercial featuring retail businesses that sell on Amazon. The ad will attempt to show how Amazon is actually a ‘big collection of small’.

In a statement, Nicholas Denissen, a vice-president with Amazon, said his employer is looking to “champion the success” of its smaller rivals with the launch of Storefronts.

“We’ve created a custom, one-stop shopping experience for customers looking for interesting, innovative and high-quality products from American businesses from all across the country,” Denissen said.

More than 300,000 small and medium-sized businesses in the US sell goods via Amazon.

Amazon shares were down slightly to US$1,957.10 in Monday's pre-market session.

View full AMZN profile View Profile Timeline

February 14 2019

Related Articles

medical imaging graphic
Here we take a closer look at the imaging and diagnostics firm IQ-AI
May 21 2019
"The group's performance over the past three years demonstrates the continuing success of our strategy to access more customers and markets," said chief executive John Nichols.
May 23 2019
Company is looking for more acquisitions after integration of Metro Rod

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use