5 ms·

So your argument is that a marketplace is a place where it is easier for a third-party to get their goods sold than a retailer? And the distinction is how a sup

by jsight 8y ago

So your argument is that a marketplace is a place where it is easier for a third-party to get their goods sold than a retailer? And the distinction is how a supplier gets their product in is the differentiator? And then the argument is that the marketplace (where it is easier to get listed) should be regulated more than the retailer (which often uses control over sales to push prices up)? I'm not onboard with this.

strange_quark 8y ago
The argument is that retailers take on risk by agreeing to sell a product since they purchase the product upfront. A marketplace like Amazon is different because they can take on 0 risk while still collecting all the data about what's selling and then turn around and undercut the vendor with an Amazon Basics product risk free.
- extra88 8y ago
  First, I think large retailers like Walmart can reduce or even eliminate the risk of selling a product in their contracts with product producers, making it effectively like selling on consignment. How profitable is Amazon Basics anyway? I bet it's small numbers. If dropping it was enough to get regulators to go away, I bet Amazon would drop it in a heartbeat. Other aspects like Prime and AWS are worth fighting over, both in terms of their value to the company and their potential to harm markets.
  - jsight 8y ago
    I bet Amazon does pretty good business with "Basics". It is a really interesting concept, IMO, and really different from store brands in the past. In many cases, the Amazon Basics products compete with essentially brandless (or relatively unknown brand) importers. The Amazon Basics brand works in these cases by having significantly more credibility than (insert random name here) USB cables. Its really the opposite way that store brand products have worked with traditional products in B&M stores, where the branded product generally has a higher natural reputation.
- jsight 8y ago
  The practical difference between selling a few items in a few test stores vs offering a marketplace is zero. The storespace is a much bigger limiting factor than the perceived difference between a "marketplace" and a "retailer", IMO.
- ars 8y ago
  > since they purchase the product upfront. That's not actually how retail works. Products are shipped to stores first, then are sold, and only 1 to 3 months later are the vendors paid. Unsold products are simply returned with no risk to the store. On top of that vendors will PAY stores for better shelf space, and will even be willing to stock the shelf, for free, for the store.

by jsight 8y ago

strange_quark 8y ago

The argument is that retailers take on risk by agreeing to sell a product since they purchase the product upfront. A marketplace like Amazon is different because they can take on 0 risk while still collecting all the data about what's selling and then turn around and undercut the vendor with an Amazon Basics product risk free.

extra88 8y ago
First, I think large retailers like Walmart can reduce or even eliminate the risk of selling a product in their contracts with product producers, making it effectively like selling on consignment. How profitable is Amazon Basics anyway? I bet it's small numbers. If dropping it was enough to get regulators to go away, I bet Amazon would drop it in a heartbeat. Other aspects like Prime and AWS are worth fighting over, both in terms of their value to the company and their potential to harm markets.
- jsight 8y ago
  I bet Amazon does pretty good business with "Basics". It is a really interesting concept, IMO, and really different from store brands in the past. In many cases, the Amazon Basics products compete with essentially brandless (or relatively unknown brand) importers. The Amazon Basics brand works in these cases by having significantly more credibility than (insert random name here) USB cables. Its really the opposite way that store brand products have worked with traditional products in B&M stores, where the branded product generally has a higher natural reputation.
jsight 8y ago
The practical difference between selling a few items in a few test stores vs offering a marketplace is zero. The storespace is a much bigger limiting factor than the perceived difference between a "marketplace" and a "retailer", IMO.
ars 8y ago
> since they purchase the product upfront. That's not actually how retail works. Products are shipped to stores first, then are sold, and only 1 to 3 months later are the vendors paid. Unsold products are simply returned with no risk to the store. On top of that vendors will PAY stores for better shelf space, and will even be willing to stock the shelf, for free, for the store.