Amazon's EU arm will stop sourcing products from several European distributors.
The move comes as part of a wider effort to reduce costs, CNBC reports.
- Amazon's EU business told European distributors on Wednesday that it will stop sourcing their products in the coming months.
- Distributors purchase large amounts of inventory from retail brands and sell it to Amazon, which then markets the products on their site.
- Severing ties with distributors will give Amazon a more direct relationship with the retail brands that produce products sold on its European site.
- Amazon said it will give distributors and wholesalers until April to prepare for the change.
