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Retailers Challenge Amazon’s AI-Powered Sales Model

Amazon is facing criticism from online retailers after its AI-driven shopping tools began listing products from other websites without sellers’ permission. The programs, called “Shop Direct” and “Buy for Me,” allow consumers to browse and purchase items from third-party sites directly through Amazon. While the company says the initiative expands customer choice, some merchants argue it effectively turns them into unwilling participants.

Since its February launch, Shop Direct has been testing features with select U.S. users. Items listed on the platform include a “Buy for Me” button, where an artificial intelligence agent completes purchases on the shopper’s behalf. Over the past decade, Amazon has increasingly relied on third-party merchants, with independent sellers now accounting for over 60 percent of retail platform sales.

Unauthorized Listings Spark Outcry

Several businesses recently reported receiving unexpected orders through Amazon’s AI system. Virginia-based Hitchcock Paper discovered customers were ordering a stress ball it does not sell, triggering concerns over incorrect or unfulfilled orders.

Bobo Design Studio CEO Angie Chua said her company, which sells stationery and journaling supplies through Shopify and a Palm Springs storefront, was included in the program without consent. After contacting Amazon through the guidance in its FAQ, the company’s listings were removed within days.

“We were forced to be dropshippers on a platform that we have made a conscious decision not to be part of,” Chua said, highlighting growing frustration among independent retailers. More than 180 sellers across Shopify, Squarespace, WooCommerce, and Wix reported similar issues.

Amazon Defends AI Initiatives

Amazon maintains that Shop Direct and Buy for Me aim to help consumers “find any product they want and need,” including items not sold on Amazon, while driving additional sales for participating businesses. The company said listings and pricing are pulled from publicly available information and verified for stock and accuracy. Businesses can opt out at any time via.

Amazon confirmed that Buy for Me remains experimental and does not collect commissions on these transactions. Product availability has grown from 65,000 at launch to over 500,000 items.

Industry Context and AI E-Commerce Trends

Amazon’s push into agentic e-commerce is part of a broader industry shift. Companies like OpenAI, Google, and Perplexity are exploring AI systems capable of purchasing products from multiple retailers without leaving a chat interface.

Amazon has also taken steps to protect its platform, including blocking unauthorized agents and filing a lawsuit against Perplexity over concealed AI tools that scraped its site. In 2024, the company launched its own AI shopping chatbot, Rufus, which incorporates agentic capabilities.

These developments underscore a growing tension between AI-driven convenience for consumers and the control and consent of online retailers, raising questions about the future of e-commerce partnerships and digital marketplace governance.