Has anyone ever heard of Tjernlund Strategic Distributor?

At a recent trade show, this company approached us about buying our products at 60% of the retail selling price, then turning around and selling the item(s) to Amazon Vendor Central at slightly less than retail. They claim Amazon buys these goods not to make money, but to get more inventory coverage to beat competitor shipping/delivery times. It sounds crazy to me, so thought I’d ask other sellers if they’ve ever heard of this practice. And if Amazon really wanted to do this, why not approach sellers directly rather than go through a distributor? What am I missing here?