Amazon’s New Shopping Tool Sparks Controversy Among Independent Retailers

In a digital retail landscape constantly shaped by innovation, Amazon’s latest shopping experiment has ignited significant debate among independent brands and retailers. The retail giant’s “Buy for Me” feature, alongside its “Shop Direct” program, represents a bold new approach to expanding Amazon’s reach beyond its own marketplace. These tools, which began rolling out in April last year, enable Amazon customers to discover and purchase products from external websites directly within Amazon’s app ecosystem. Using artificial intelligence, Amazon can even complete purchases on behalf of customers, acting as an intermediary in transactions that would normally occur directly between consumers and independent retailers.

The controversy came to light through recent reports by Bloomberg, Modern Retail, and Financial Times, which detailed numerous complaints from independent brands who discovered their products appearing in Amazon search results without their explicit consent. Many retailers reported only becoming aware of the program after receiving unusual orders from Amazon-linked email addresses. Their concerns are multifaceted: some retailers assert they never agreed to participate in these programs, while others point to inaccuracies in how their products are represented on Amazon, including listings for items that were actually out of stock. Perhaps most fundamentally, many object to Amazon’s intrusion into their direct customer relationships, viewing it as an unwelcome disruption to their business model that could potentially diminish the value of their brand experience and dilute their connection with customers.

Amazon has defended its approach, maintaining that participation in both the “Buy for Me” and “Shop Direct” programs remains entirely optional, with a straightforward opt-out process available to any concerned businesses. The company emphasizes that these features are designed to benefit both consumers and retailers – helping shoppers discover brands and products not currently available in Amazon’s store while simultaneously providing businesses with access to new customers and increased sales opportunities. In its statement to GeekWire, Amazon noted that businesses can easily remove themselves from these programs by emailing a dedicated address, promising prompt removal in response to such requests. The company also points out that listings created through “Buy for Me” are clearly labeled as coming from external stores, and that their system verifies stock availability and price accuracy by checking the brand’s website before displaying products.

The scale of this initiative is significant and growing rapidly. Amazon reported in November that the number of products available through “Buy for Me” had expanded from 65,000 to more than 500,000, indicating substantial investment in and commitment to this approach. The program works by pulling product and pricing information from publicly available data on brand websites, though Amazon acknowledges it may modify this information for display within its shopping app. This revelation has further intensified concerns among independent retailers who worry about losing control over how their products are presented and priced in one of the world’s largest digital marketplaces, potentially undermining carefully crafted brand strategies and marketing efforts that smaller companies depend on to differentiate themselves in competitive markets.

This tension highlights broader questions emerging as artificial intelligence increasingly shapes e-commerce. Independent sellers, who account for more than 60% of Amazon’s online store sales, find themselves at a critical juncture as platforms experiment with AI-powered shopping tools that could fundamentally alter how products are discovered and purchased. The controversy underscores growing debates about who rightfully controls the customer relationship and product discovery process when technology platforms can insert themselves as intermediaries – or even act as buyers – on behalf of consumers. These questions extend beyond Amazon to encompass the broader technological shift toward what industry observers call “agentic commerce,” where AI systems take increasingly active roles in the shopping process.

Amazon’s own stance on this issue appears somewhat contradictory when viewed alongside its recent legal action against AI startup Perplexity. In November, Amazon sued the company to prevent its AI browser agent from making purchases on Amazon’s marketplace, citing computer fraud laws, security risks, and concerns about a “significantly degraded shopping and customer service experience.” This legal challenge suggests Amazon recognizes the potential disruption such intermediary technologies can cause – yet independent retailers now find themselves raising similar objections about Amazon’s own AI-powered shopping tools. As these technologies continue to evolve and reshape commerce, finding the right balance between innovation and respecting established business relationships will likely remain a central challenge for platforms, retailers, and regulators alike, with significant implications for the future of retail and the digital economy as a whole.