Amazon unveiled a series of updates during its annual Accelerate conference for sellers, introducing new AI tools to streamline manual tasks. However, the standout announcement was the discontinuation of the controversial practice known as commingling.
Amazon has long been criticized for commingling, a practice where identical items from different sellers are pooled under a single manufacturer barcode, leading to potential issues with product authenticity and quality. Despite its benefits in speeding up deliveries and optimizing warehouse space, commingling has faced backlash from brands and sellers over the years.
Some notable incidents include Johnson & Johnson pulling products from Amazon in 2013 due to concerns over expired or damaged goods supplied by third-party sellers, and Tovolo experiencing an influx of knockoffs in search results when slowing shipments to Amazon. To address these issues, sellers have had the option to apply unique Amazon barcodes to their products, but this process has been costly and time-consuming.
However, Amazon’s decision to phase out commingling signals a significant shift in its supply chain strategy. The move comes as a result of advancements in Amazon’s logistics network, an increase in sellers opting out of commingling to protect their brands, and improved tracking systems that allow for individual units to be traced throughout the network.
Nadya Dhalla, director of Supply Chain by Amazon, announced the end of commingling at the conference, highlighting the benefits for sellers and brands. This change will ensure that customers receive products directly from the specific seller and streamline inventory management across multiple sales channels.
Industry analysts are already praising Amazon’s decision as a crucial step in protecting brands on its platform. With commingling soon to be a thing of the past, sellers can expect a more transparent and efficient supply chain experience on Amazon.
