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Amazon reportedly dropping local third parties from fresh grocery program

The Amazon Fresh program is phasing out its local partners.

Amazon’s Fresh service, which enables shoppers to order from a selection of fresh and frozen foods, and some general merchandise, is dropping local third-party vendors from the platform. The program closes on May 30, according to Business Insider.

Vendors were previously allowed to enroll in Amazon Fresh's Local Market Seller initiative, which supplemented Fresh's offerings with locally sourced items. Instead, the program will be more retail-based, with Amazon buying product wholesale and selling it to consumers, much like a typical store, the report said.

According to a source Business Insider only identified as “Freddy,” the change was disclosed in an email to vendor partners on May 11.

Amazon declined to comment on the business change.

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