Online giant Amazon has revealed what it said were “significant” changes to its delisting process, as it continues to face scrutiny following its incorporation under the Groceries Supply Code of Practice.
The company said the changes, which will apply specifically to its grocery vendors, would mean it would now take into account factors such as the overall economic impact on a business from delisting.
Previously Amazon’s highly automated systems have operated under the controversial policy of ‘CRAP’ (cannot realise a profit), which has been used to delist brands not seen as financially viable.
While not scrapping them altogether, Amazon said the new commitment would ensure human intervention to prevent products being delisted if it meant businesses potentially going to the wall.
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Amazon said it was implementing a new system that would offer suppliers “an holistic approach”, rewarding companies for exclusivity and the size of their business with Amazon, but also protecting smaller suppliers.
The changes are the latest announcement from Amazon, which has been policed by Adjudicator Mark White since March, having crossed the Competition & Markets Authority’s threshold of £1bn in grocery sales.
In May, The Grocer revealed it had introduced a new maximum payment period for suppliers and stopped the process of retrospective increases in suppliers’ payment terms.
However, it has continued to face criticism from suppliers and trade bodies over its delisting procedures.
“Amazon serves as a fantastic shop window for grocery suppliers and we strive to build successful long-term relationships,” said Alex Simpson, Amazon’s code compliance officer, who was previously CCO at Asda. Simpson’s appointment has been seen my many as a significant move by Amazon to become GSCOP compliant.
He added: “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.”
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