Amazon (AMZN) - Get Report is developing a program called Amazon Accelerator to help out small merchants and make their products more visible on Amazon's platform -- for a price, according to a Wall Street Journal report.
Amazon will help independent merchants out with marketing support, product reviews and prominent display on Amazon in exchange for Amazon having the right to purchase the brand at any time for a fixed price, often $10,000.
The program will give Amazon the option to purchase brand rights for a fixed price on 60 days' notice as the company looks to build its stable of exclusive brands.
Amazon Accelerator will allow smaller merchants to stand out on the crowded website, but if the product takes off Amazon has the right to purchase the product outright.
The Journal viewed an Accelerator contract that stipulates that the original owner of a brand that is bought by Amazon will remain Amazon's exclusive supplier for two years after the acquisition. After that, Amazon can source products for the brand from elsewhere.
Amazon shares were up 0.5% to $1,987.68 in early trading on Friday and are up 32% year to date.
Amazon is a key holding in Jim Cramer's Action Alerts PLUS charitable trust.