, Inc. (NASDAQ:AMZN) Plans To Wind Up Its Webstore Business


There have been reports that, Inc. (NASDAQ:AMZN) will close its web-hosting service soon. This service was basically provided to support the small and mid-sized retailers who use company’s technology in order to run their online stores. Meanwhile, the company is still giving time to its customers to find a new replacement. It would not be before June 1, 2016 that the service would be finally pulled off.

With the advent of new companies like Shopify and Bigcommerce in this sector, the business had become extremely competitive off-late. These new entrants have been able to raise huge venture capital funds and, therefore, have been providing advanced shopping tools and a better shopping experience to its customers.

Though official confirmation about the shutting down of Amazon’s webstore business is yet to come, the news has been confirmed by, Kevin Richards, CEO of Ventura Web Design. The latter is a solution-provider for Amazon. He has said that he is extremely grateful to Amazon for providing such a well-in- advance notice to its Solution-providers and merchants.

This only goes to reinforce the trust and respect that Amazon places in all his retailers. He also informed that Amazon would still allow its users to use its other selling tools like Seller Central, Product Ads and FBA.

It has been said that though Amazon, on grounds of being an extremely popular brand, attracted retailers easily, its customers did not enjoy a similar benefit. Retailers were mostly looking for an international exposure through Amazon webstore. However, the additional costs incurred were not proportionate to any extra benefits received.

Amazon is not alone in quitting this business sector. Last year, it was eBay Inc (NASDAQ:EBAY) which had made a similar decision by closing down its Magneto Go service, which was especially for the small retailers. The company went a step further and even recommended the name of Bigcommerce to its existing customer base.