Advertisement

Amazon Consolidates Retail, Marketplace Operations Under One Team

Amazon is merging its retail and Marketplace teams behind the scenes, according to a company statement reported on by Business Insider. The retailer has “been working for some time on standardizing the products, tools, and services we offer to the brands and resellers that sell on Amazon,” with the ultimate goal of making the difference between Amazon and third-party purchases seamless.

Amazon already has been implementing standards to regulate the practices of third-party sellers. Retailers using Amazon’s site have limits on how much they can charge for shipping and deadlines for how long a purchase can wait before it is sent to the customer.

Advertisement

The changes have put more operations under Doug Herrington, SVP of the North America Consumer business, according to CNBC. The Marketplace had operated under the leadership of Sebastian Gunningham, SVP of Seller Services, until he left the retailer in March 2018. Vice President of Amazon Marketplace Peter Faricy has been in charge of the division since then, but people familiar with the matter say many of his responsibilities have been shifted to other executives.

The Marketplace has faced challenges not experienced by the retail division, such as counterfeit products and false reviews. A study by the Government Accountability Office found 20 out of 47 items purchased from third-party sellers through the e-Commerce sites of retailers, including Amazon and Walmart, were counterfeit.

“This is a clear signal from Amazon that its marketplace is core to its long-term business strategy, and it should not be managed separately,” said Adrien Nussenbaum, Co-Founder and U.S. CEO of Mirakl in commentary provided to Retail TouchPoints. “Although Amazon has struggled to prevent seller fraud, the fact is that the third-party marketplace is now responsible for half of Amazon’s sales.”

Featured Event

View the Retail Trendcaster Webinar Series on-demand to uncover key 2025 retail trends, from AI and personalization to social commerce. Gain expert insights, data-driven predictions, and actionable takeaways to stay ahead in a rapidly evolving market.

Advertisement

Advertisement

Retail Trendcaster Webinar Series
Days
Hours
Minutes
Seconds

Uncovering What’s Next in Retail

On-Demand Limited Video Series

Q1 is a pivotal time for retail, with experts analyzing holiday sales and forecasting trends. View the full lineup of the Retail Trendcaster video series for insights on consumer spending, AI, personalization, social commerce, and more—helping you focus on what truly matters in 2025.

Brought to you by
Retail TouchPoints
Access Now
Retail TouchPoints is a brand of Emerald X LLC. By clicking the button and submitting information, you acknowledge and agree that your information may be shared with corporate affiliates of Emerald X LLC, and other organizations such as event hosts, speakers, sponsors, and partners. Please read our Privacy Policy and our Terms Of Use for more information on our policies.

Access The Media Kit

Interests:

Access Our Editorial Calendar




If you are downloading this on behalf of a client, please provide the company name and website information below: