What Amazon’s Purchase Of Whole Foods Means For FBA Sellers

Amazon’s recent acquisition of Whole Foods means that big changes are coming to the physical products world.

Amazon has dominated online selling because of investments into distribution (see: Prime Now and 2-Day Delivery) and how easy they make it for new brands (see Seller Central and Fulfilled By Amazon). Before FBA, selling physical products was incredibly hard.

When Amazon opened fulfilled By Amazon to any and all brands, they made it possible for new businesses to exist. It was now possible to be in front of millions of customers within days. Brands could put their products directly in front of the biggest retailer in the world.

The acquisition of Whole Foods means that Amazon is making a play to change the face of retail, just like they changed the face of ecommerce. And that likely means that brands will be able to to go straight to retail.

If Amazon continues to expand its reach into retail with additional acquisitions (and you can bet that they will), then it means that high performing brands will have front-of-the-line access into retail stores across the country.

If you have the best selling cacao butter on Amazon, you could see it go straight into Whole Foods. Sell an awesome meal cheese grater? You could it on retail store shelves within a few months.

This is the move that I hoped WalMart.com would make. Their biggest asset was their retail distribution, and they could (and should have) used that in combination with their online store. Instead, they made it difficult to sell on their site, and they squandered their biggest opportunity. Now they are playing catchup, but they still have a shot to follow suit.

This podcast outlines the potential opportunities that will arise as a result of Amazon’s acquisition of Whole Foods. There has NEVER been a better time to be a physical products seller.

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