The e-commerce giant Amazon is reportedly reaching out to several large third-party sellers in the North American market asking them to hold off their listing of products on Souq.com. Amazon has summoned these product sellers to enlist their products at the new platform developed by Amazon for MENA region.
As per reports put out by CNBC, the e-commerce giant Amazon is planning to shut off Souq.com, a popular e-commerce website in the middle east region, in favor of setting up a new platform called Amazon.ae. The new platform is said to offer a better platform with refined integration supported by its advanced technological systems and native logistics.
Souq.com is one of the most popular e-commerce websites in UAE, Saudi and Egypt. It is an Amazon subsidiary after its acquisition in 2017. Souq is a lucrative platform to purchase branded products at highly discounted prices.
Amazon.ae to Replace Souq.com
In latest round of speculations, Souq.com is all set to be replaced by e-commerce giant, Amazon’s new platform – Amazon.ae. The new platform is expected to be launched soon. No official notification or press release is being released by official Souq spokesperson when raised this question. However, the very response of the spokesperson to the email came from an Amazon.ae email domain, thus raising the speculations further.
It still remains unclear whether the e-commerce website plans to rebrand the popular Souq.com as Amazon.ae or whether they plan to shut it off completely. However, Amazon has refused to comment on the speculations without giving a nod or a no for the question.
Buying of Souq.com by Amazon
Souq.com was acquired by Amazon back in the year 2017. Amazon.com bought the website for a whopping price of $580 million from the then e-commerce giant Quidsi which was shut in 2017. Quidsi is the parent company of diapers.com and souq.com which the former had acquired seven years before at a price of US $545 million. Although Amazon and Quidsi sold similar products on their individual sites, yet the latter was bought by Amazon in the year 2017.
Speaking about the acquisition, Amazon published an invitation sending it to a selected group of sellers which mentioned,” After the acquisition of Souq by Amazon, I hereby offer you an invitation for participating in a groundbreaking new sales projects in our select group of sellers.” The invitation further added,” Our programs are straightforward, simple and aids in expanding your select category of business to a new base of buyers at Amazon.”
Keeping it private
The merchants who spoke with CNBC asked to be kept anonymous and not be identified as the discussions with Amazon were private. Moreover, The Logistics Middle East is yet to independently verify the accuracy of the invitation emails sent from Amazon.
The new platform of Amazon launched in the middle east is deemed to look similar to any other Amazon websites and their international websites such as Amazon UK or Amazon Germany. As per the sellers, it would give it a more unified brand and appearance in the region.
Similar to Souq Coupon, the customers will have access to excellent deals and offers. The customers will continue to be offered similar offers wherein they can avail discounts etc. offered from Amazon’s side. While Amazon.ae has replaced Souq.com, the offers will continue to remain the same with a new range of sellers for reaching out to the target audience.
The new e-commerce platform would come with the same back end system for sellers used in the US as well as access to Fulfillment by Amazon (FBA), the shipping service and the company’s storage services. However, as of now, the e-commerce giant Amazon.com still have a dozen job openings enlisted for Souq.com.