Amazon Kills Commingling: AI-Powered Assistant and a Brand-First Approach
Amazon announced at its annual Accelerate seller conference the end of its controversial "commingling" program, a move met with enthusiastic applause from sellers. This program, which pooled identical items from different sellers, had allowed counterfeit and expired goods to be mixed with legitimate ones, harming brand reputations. Amazon cited diminishing efficiency gains from commingling due to its improved logistics network, and the $600 million annual cost to brands for re-labeling. This decision reflects Amazon's stronger commitment to brand protection and direct partnerships, as seen in its renewed relationship with Nike. Alongside this, Amazon launched an AI-powered seller assistant to optimize operations and resolve issues. While the AI assistant garnered attention, the termination of commingling resonated most strongly with sellers, signifying a more brand-friendly Amazon marketplace.