5 ms·

You have a point but I think the fact that grocery stores sell private label goods is the counter-point. Grocery stores re-package goods like rice, beans, paper

You have a point but I think the fact that grocery stores sell private label goods is the counter-point. Grocery stores re-package goods like rice, beans, paper towels, etc. to compete with their vendors all the time. We call them supermarkets, right? A grocery store is simply a more organized open market. Which is very comparable to Amazon. I think the problem is that they present the results on good faith that "these results are the best match for you based on your search", not the most profitable for them. I just ran a search and the default search filter was "Featured", which is so ambiguous it could mean anything, so it seems like a classic bait and switch that played out over the course of a decade of consumers getting the best search results based on reviews and sales.

learc83 7y ago
>Grocery stores re-package goods like rice, beans, paper towels, etc. to compete with their vendors all the time. That was the original point I was arguing against. My point is that grocery store is not a good analogy because Amazon is not the same as a retail store, they are a combination store and marketplace.
- PorterDuff 7y ago
  I would argue that a grocery store is a combination store and marketplace in that case. Stores have plenty of in-house brands, they also have racks of goods that are stocked and sold by third parties wherein they get a cut. To be fair, I think I would be more comfortable comparing Amazon to Sears in it's heyday.
  - ummonk 7y ago
    What store / grocery store has goods stocked by third parties? (Rather than purchased from the third party by the grocery store)?
    - PorterDuff 7y ago
      All of the ones around here do. Used DVD racks still exist. Soft drink vending machines. Seasonal items. Newspaper racks. In the case of items actually run through the register, I'm not sure how that's dealt with from an accounting standpoint. I do know that the stores have the ability to return 100% of unsold goods in those cases.
  - learc83 7y ago
    >, they also have racks of goods that are stocked and sold by third parties wherein they get a cut I'm sure that exists, but it's not common. Grocery stores often charge slotting fees, but that's not the same as renting shelf space--the store still owns the product (even if there is an agreement to buy it back if it doesn't sell). Also retail stores take on more product liability than marketplaces like flea markets do.
philipodonnell 7y ago
> A grocery store is simply a more organized open market. That’s not true though right? Don’t grocery stores buy the products that are on their shelves and they are reselling them? That’s fundamentally different from a marketplace.
- mortivore 7y ago
  Some grocery stores, like Kroger, sell their own branded products in their stores.
  - hoveringcto 7y ago
    Exactly. Stores like Kroger use their data, make generic versions of popular items, and sell right next to the brand at eye level. Amazon just does it at a larger scale.
- ars 7y ago
  > Don’t grocery stores buy the products that are on their shelves and they are reselling them? No, not usually. Usually the seller pays the grocery to carry items, and the seller owns the items until sold. For some products the seller even stocks the items on the shelves.
- wccrawford 7y ago
  I think that's true for most goods, but there were definitely brands that stocked their own shelves at Publix when I worked there. That said, what brands got that special treatment was very much decided by Publix, so they were still curating the selection, they just weren't paying up-front for the goods or responsible for keeping those shelves looking good.
  - learc83 7y ago
    Generally Publix still owns that inventory though (even if they have a buyback guarantee) My dad worked for Lance snacks when I was a kid. He stocked the shelves, but the stores paid him for the product.

learc83 7y ago

>Grocery stores re-package goods like rice, beans, paper towels, etc. to compete with their vendors all the time. That was the original point I was arguing against. My point is that grocery store is not a good analogy because Amazon is not the same as a retail store, they are a combination store and marketplace.

PorterDuff 7y ago
I would argue that a grocery store is a combination store and marketplace in that case. Stores have plenty of in-house brands, they also have racks of goods that are stocked and sold by third parties wherein they get a cut. To be fair, I think I would be more comfortable comparing Amazon to Sears in it's heyday.
- ummonk 7y ago
  What store / grocery store has goods stocked by third parties? (Rather than purchased from the third party by the grocery store)?
  - PorterDuff 7y ago
    All of the ones around here do. Used DVD racks still exist. Soft drink vending machines. Seasonal items. Newspaper racks. In the case of items actually run through the register, I'm not sure how that's dealt with from an accounting standpoint. I do know that the stores have the ability to return 100% of unsold goods in those cases.
- learc83 7y ago
  >, they also have racks of goods that are stocked and sold by third parties wherein they get a cut I'm sure that exists, but it's not common. Grocery stores often charge slotting fees, but that's not the same as renting shelf space--the store still owns the product (even if there is an agreement to buy it back if it doesn't sell). Also retail stores take on more product liability than marketplaces like flea markets do.

philipodonnell 7y ago

> A grocery store is simply a more organized open market. That’s not true though right? Don’t grocery stores buy the products that are on their shelves and they are reselling them? That’s fundamentally different from a marketplace.

mortivore 7y ago
Some grocery stores, like Kroger, sell their own branded products in their stores.
- hoveringcto 7y ago
  Exactly. Stores like Kroger use their data, make generic versions of popular items, and sell right next to the brand at eye level. Amazon just does it at a larger scale.
ars 7y ago
> Don’t grocery stores buy the products that are on their shelves and they are reselling them? No, not usually. Usually the seller pays the grocery to carry items, and the seller owns the items until sold. For some products the seller even stocks the items on the shelves.
wccrawford 7y ago
I think that's true for most goods, but there were definitely brands that stocked their own shelves at Publix when I worked there. That said, what brands got that special treatment was very much decided by Publix, so they were still curating the selection, they just weren't paying up-front for the goods or responsible for keeping those shelves looking good.
- learc83 7y ago
  Generally Publix still owns that inventory though (even if they have a buyback guarantee) My dad worked for Lance snacks when I was a kid. He stocked the shelves, but the stores paid him for the product.