Amazon Shutting Down Webstore Platform — What Went Wrong?

by | Mar 19, 2015 | Blog

Amazon Webstore Shutting DownOn-AMZN:  I ran the Enterprise Services Business at Amazon in 2004 and 2005.  This business provided the ecommerce infrastructure for large enterprise brands like, Toys R Us, NBA, and other great brands.  This business provided core web technology, branded fulfillment and branded customer service to these clients. In order to reach the small enterprise, a completely self-service (DIY) approach was developed which became the “web store” platform at Amazon.  Amazon is shutting down the Web Store business.

What went wrong?  I’d love to hear your ideas — comment or email me at

Amazon reportedly planning to shut down its Webstore platform for small businesses

Blair Hanley Frank


Amazon has begun telling merchants that it will be shutting down Webstore, its e-commerce platform that allows small businesses to run their own online stores using the company’s technology, according to posts made on a forum for Amazon sellers and a report by Re/code.

Webstore customers will have a while to find a replacement, however. According to the postings, the service won’t be shutting down until June 1, 2016, which means people who rely on it for conducting business can take their time evaluating other products like Shopify.

Amazon isn’t the only company getting out of the business of providing a platform for small businesses to build their own online stores. eBay announced that it will be shuttering its Magneto Go service, which provides similar functionality. It’s a field that has grown increasingly competitive in recent years, with companies like Shopify and Bigcommerce raising lots of money to provide a dedicated experience for small businesses.

The news comes as Amazon also works to transition online retailers who use Amazon Payments away from its Flexible Payments Service product and towards its new Login and Pay with Amazon product. That move has also caused a good deal of disruption for small and medium business owners, and was one of the causes behind Patreon’s recently-announced acquisition of competing crowdfunding site Subbable.

A representative for the company declined to comment on this report.

Original at Geekwire HERE

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