AmazonFresh says it will no longer sell goods from third-party vendors alongside its own products in its Local Market Seller program. The vendors will be dropped by the end of the month.
Food Dive says the decision makes sense for Amazon as it seeks to operate more efficiently in the increasingly competitive grocery market. It also reflects Amazon’s purchase of Whole Foods last year. The companies are increasingly turning away from small suppliers, and Amazon is expanding its Prime Now grocery service; Whole Foods launched Prime Now delivery in February and plans to expand into new markets over the course of the year.
An email from Amazon reportedly indicates the company plans to buy more products wholesale, but also that local sellers will be offered more opportunities down the road.