The cross-border e-commerce landscape has been shaken by Amazon's abrupt termination of its brand authorization program, leaving thousands of third-party sellers scrambling. Without warning, the retail giant informed partners that its Fulfillment by Amazon (FBA) warehouses would stop accepting new shipments of authorized brand products starting December 1, with all existing inventory required to be sold by March 31, 2023.
Unilateral Decision Sparks Seller Backlash
The policy change affects sellers across Amazon's U.S., European, and Japanese marketplaces. Many affected businesses—primarily manufacturers who had invested heavily in producing Amazon-branded goods—report being blindsided by the decision. Some sellers revealed they had manufactured large quantities of inventory based on verbal agreements with Amazon representatives, leaving them with potentially unsellable stock.
"We trusted Amazon's platform and made production commitments accordingly," said one seller who requested anonymity. "Two weeks' notice is completely inadequate to adjust our operations." Legal action appears imminent, with multiple sellers reportedly consulting attorneys about potential breach-of-contract claims.
Temu Emerges as Alternative Platform
As Amazon sellers grapple with the policy shift, Chinese e-commerce platform Temu is gaining traction among displaced merchants. Shenzhen-based Hua Kai Yi Bai, a major cross-border seller, confirmed it has begun establishing stores on Temu as part of its diversification strategy.
Temu's growth metrics suggest it may become a viable alternative. Recent data shows the platform surpassed Amazon, Shein, and Walmart in U.S. iOS shopping app downloads on October 17, with approximately 80,000 download users and 6,000 daily active buyers. About 20,000 sellers have already joined the platform.
Strategic Considerations for Affected Sellers
Industry analysts suggest several approaches for sellers navigating this transition:
Legal recourse: Sellers with significant losses may pursue claims against Amazon for abrupt contract termination.
Platform diversification: Expanding to multiple marketplaces reduces dependence on any single platform's policies.
Product strategy realignment: Adjusting inventory to focus on proprietary brands rather than platform-authorized merchandise.
Operational efficiency improvements: Streamlining supply chains and logistics to offset potential revenue losses.
Early adoption advantages: New platforms often offer preferential terms to early participants, creating potential first-mover benefits.
The e-commerce sector continues to demonstrate its volatility, with platform policies and competitive landscapes shifting rapidly. While Amazon's decision creates immediate challenges, it may ultimately accelerate the industry's evolution toward more diversified marketplace ecosystems.