Zlio, a French startup which lets users set up their own DIY shops, has suffered a blow, as e-commerce giant Amazon has stopped Zlio shopkeepers from listing its products.
Interestingly, this ban only applies to the US, and Zlio shopkeepers in Europe will still be able to list Amazon's products. Zlio users set up their own DIY shops and earn affiliate commission on the products they sell.
According to Zlio CEO Jeremie Berrebi:
"One week ago Amazon informed us that they no longer wished to have Zlio promote Amazon products in the US. For the past week we have endeavored to understand and get to the heart of their concerns – Amazon has remained inflexible."
Over the next month, Amazon products in Zlio shops will be replaced by alternatives, and Amazon has said that it will not pay affiliate commission on products, effective from one week ago.
This seems a strange move by Amazon, as you would imagine that Amazon would want its products sold in as many places as possible.
It has not given reasons for its decision, though there is some speculation that Amazon has taken this action as Zlio, which gets 50% of its sales through Amazon, competes directly with its own aStores service.
Zlio targets UK with DIY shop application