Amazon Is Poised to Unleash Long-Feared Purge of Small Suppliers

Amazon Is Poised to Unleash Long-Feared Purge of Small Suppliers
FILE - In this June 30, 2011 file photo, a United Parcel Service driver delivers packages from Amazon.com in Palo Alto, Calif. Amazon is offering deals July 12, 2016, for the second edition of its annual "Prime Day" promotion. AP Photo/Paul Sakuma, File
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Two months ago, Amazon.com Inc. halted orders from thousands of suppliers with no explanation. Panic ensued—until the orders quietly resumed weeks later, with Amazon suggesting the pause was part of a campaign to weed out counterfeit products. Suppliers breathed a sigh of relief.

Now a larger, more permanent purge is coming that will upend the relationship between the world’s largest online retailer and many of its long-time vendors.