Amazon Faces Backlash for Unauthorized Listings via 'Shop Direct'
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Newsfilter
- Unauthorized Listings: Amazon's 'Shop Direct' program allows consumers to buy products from other retailers on its platform, leading to unauthorized listings that disrupt inventory management and harm brand reputation for some merchants.
- Merchant Backlash: Over 180 businesses have reported their products being listed on Amazon without consent, with some receiving erroneous orders from Amazon, causing operational challenges and frustration.
- Amazon's Response: Amazon claims businesses can opt out of the program at any time via email and asserts that the initiative aims to help merchants reach new customers and drive incremental sales, though merchants express dissatisfaction with this approach.
- Market Impact: As Amazon increases its investment in e-commerce agent technology, it may reshape the online shopping landscape in the future, but the current backlash could negatively affect its relationships with merchants and overall brand trust.
Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMZN is 294.71 USD with a low forecast of 250.00 USD and a high forecast of 340.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
43 Analyst Rating
40 Buy
3 Hold
0 Sell
Strong Buy
Current: 240.930
Low
250.00
Averages
294.71
High
340.00
Current: 240.930
Low
250.00
Averages
294.71
High
340.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
