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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 effe
by 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 agoI 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.