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Amazon's primary customer has shifted to the 3rd-party seller, i.e., it's not profit off water coolers that allows low prices. Looking at Amazon's financials,
by ballenf 9y ago
Amazon's primary customer has shifted to the 3rd-party seller, i.e., it's not profit off water coolers that allows low prices.
Looking at Amazon's financials, they make more profit off of selling advertising (lightning deals, search ads & "related" sponsored listings) than margin off sales.
It really shows when you look at the lightning deals and find product after product with artificially inflated reviews. Amazon has zero interest in fixing this because customers are its product not its customers.
Hard to see how a traditional retailer can begin to compete with this.
- emodendroket 9y ago> Hard to see how a traditional retailer can begin to compete with this. Probably an administration actually interested in antitrust regulation.
- paulcole 9y ago> Amazon has zero interest in fixing this because customers are its product not its customers. If you think 3rd party sellers are Amazons customers and get much better treatment than end buyers, boy are you barking up the wrong tree.
- ballenf 9y agoNot just any 3rd party seller, only the ones willing to systematically spend ad dollars to promote products. But even non-spending sellers send a lot of transaction revenue Amazon’s direction. You don’t get good treatment however because you're a disposable commodity. Treating you well doesn’t increase revenue.
- robryan 9y agoYeah, they have no trouble finding the next person in line or cutting their own deal to replace the supply they have kicked off for anything remotely high volume.