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Those were the dirtiest business tactics of Amazon Nobody can beat Amazon’s margin. Amazon “invites” you to sell on their marketplace. You hustle. You innovate.

Those were the dirtiest business tactics of Amazon Nobody can beat Amazon’s margin. Amazon “invites” you to sell on their marketplace. You hustle. You innovate. You test the market. You risk your time and money. Until FINALLY you nail it! After weeks or months of hard work you finally find the right product at the right price… SUCCESS! You start making money! Everything is amazing… But “someone” has been watching you! The “owner” of YOUR customers has been collecting ALL your data. Watching your progress, your growth, your competitors, your margins, your shipping costs, etc. THANK YOU FOR PARTICIPATING! Amazon will copy your product. Add their private label “Amazon Basics” to it. Sell it at an unbeatable price. Attach FREE Amazon Prime shipping to it. Position the exposure of their product on their website better than yours. In a matter of days, you will be OUT of business! THANK YOU FOR PARTICIPATING IN AMAZON MARKETPLACE!

Tostino 7y ago
It's almost like there should probably be some oversight on one of the most powerful entities on the planet to stop these anti-competitive practices.
- taurath 7y ago
  And now they can threaten what, the losses of 400k jobs if forced to not utilize their nation-state scale to screw competitors?
  - dathinab 7y ago
    Actually that thread doesn't work at all. Because restricting them might cost Amazone jobs BUT: 1. Not all of them, probably a negligible amount. (Just the ones responsible for crating/producing copied products, not any ones involved in any other area) 2. Create new jobs through fair competition in similar amounts as jobs lost, likely even more as more companies being involved means more operational positions like e.g. for book keeping. 3. (2. reformulated). Not restricting it will cost as much or more jobs due to small companies going out of business and amazon as a giant company can better optimize overhead of operation away compared to many small independent businesses.
- missedthecue 7y ago
  Is it really in the spirit of anti competitive laws if the consumer wins? This is more like one business owner (FBA seller) trying to sic the authorities on their competition (Amazon Basics) in order to keep a competitive advantage. This seems more anti competitive than what Amazon is doing
  - CydeWeys 7y ago
    The consumer doesn't win in the end if there's only one major retailer that survives. There's lots of benefit in diversity of retailers competing against each other.
    - tcbawo 7y ago
      The consumer doesn't feel the effect of the consolidated marketplace until Amazon decides to start squeezing its customers. Once all the ducks are in a row, look out.
  - Ensorceled 7y ago
    Yes. Anti-monopoly laws are about overall society health, not just consumer protection. Having only a few large companies controlling large segments has massive negative effects on suppliers, employee wages, etc. etc.
    - xyzzyz 7y ago
      You might wish that this was the case, but in the US, the anti-trust law doesn't work this way. The law doesn't prohibit monopoly by itself. Monopolization is only prohibited if it restrains trade, or if the monopoly position was improperly gained. If Amazon attains monopoly position through superior products, innovation, or business acumen, it is very much legal in the US[1]. I think it's hard to argue that Amazon undercutting the participants in its marketplace is restraining the trade: the complaint here is, as I understand it, that through better knowledge of the market, and better integrated and more efficient platform, it is able to offer same or better products at lower prices. I can't see how it restrains the trade, according to how FTC understands it. It would only be illegal if Amazon did sold these products below their own costs, and then planned to recoup the losses by raising the price after the competition is gone. I haven't seen any evidence that this is what's going on. [1] - https://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/single-firm-conduct/monopolization-defined https://www.ftc.gov/tips-advice/competition-guidance/guide-a...
- claytongulick 7y ago
  Or, markets will shift away from abuse, and they will have difficulty regaining customer trust cough Blockbuster Video cough
  - FridgeSeal 7y ago
    “Don’t worry guys! The magical invisible hand of the market will fix this! Just like how it stopped abuse and exploitation by itself all those other times! This time it will _definitely_ work”
- toomuchcredit 7y ago
  Regulating them to a pure marketplace is the best outcome we an hope for, i.e. require them to divest any product they sell in the marketplace. India took some steps in that direction last year. Why not in the US?
  - jgacook 7y ago
    Because the US regulatory framework and enforcement has been chipped away at by corporate interests over the past 3 decades to the point of non-existence. America went from filing >50 antitrust lawsuits in the 1970s to ~5 in the past 2 decades.
alacombe 7y ago
It is arguable that all retail chains have been doing this with their store branded product lines.
throwaway888abc 7y ago
Surprised ? Also, you choose to give the data by using the platform. Terms and condition apply.
- deleted 7y ago
  [deleted]
siruncledrew 7y ago
In all fairness, if Amazon doesn’t copy your product, then some Alibaba store or Chinese manufacturer will and in a few weeks time you’ll see the same product and description surface on Amazon under the name YUKOOLSEE and with 1000 5-star reviews already. /s
fallingfrog 7y ago
I mean, this is essentially how capitalism has always worked. Mountain bikes were invented by tinkerers in California, the blues was invented by slaves or former slaves, none of those people died rich. The big guys have all the money and power, and if you dont like it, well, this is how capitalism is designed to operate, so I don’t know what to tell you.
_bxg1 7y ago
But no, there's no antitrust case to be made against big tech... /s
koheripbal 7y ago
Amazon needs more competition. Other markets like Walmart are stepping up, but not quickly enough.
dang 7y ago
Would you please not use allcaps for emphasis? This is in the site guidelines: https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html.

Tostino 7y ago

It's almost like there should probably be some oversight on one of the most powerful entities on the planet to stop these anti-competitive practices.

taurath 7y ago
And now they can threaten what, the losses of 400k jobs if forced to not utilize their nation-state scale to screw competitors?
- dathinab 7y ago
  Actually that thread doesn't work at all. Because restricting them might cost Amazone jobs BUT: 1. Not all of them, probably a negligible amount. (Just the ones responsible for crating/producing copied products, not any ones involved in any other area) 2. Create new jobs through fair competition in similar amounts as jobs lost, likely even more as more companies being involved means more operational positions like e.g. for book keeping. 3. (2. reformulated). Not restricting it will cost as much or more jobs due to small companies going out of business and amazon as a giant company can better optimize overhead of operation away compared to many small independent businesses.
missedthecue 7y ago
Is it really in the spirit of anti competitive laws if the consumer wins? This is more like one business owner (FBA seller) trying to sic the authorities on their competition (Amazon Basics) in order to keep a competitive advantage. This seems more anti competitive than what Amazon is doing
- CydeWeys 7y ago
  The consumer doesn't win in the end if there's only one major retailer that survives. There's lots of benefit in diversity of retailers competing against each other.
  - tcbawo 7y ago
    The consumer doesn't feel the effect of the consolidated marketplace until Amazon decides to start squeezing its customers. Once all the ducks are in a row, look out.
- Ensorceled 7y ago
  Yes. Anti-monopoly laws are about overall society health, not just consumer protection. Having only a few large companies controlling large segments has massive negative effects on suppliers, employee wages, etc. etc.
  - xyzzyz 7y ago
    You might wish that this was the case, but in the US, the anti-trust law doesn't work this way. The law doesn't prohibit monopoly by itself. Monopolization is only prohibited if it restrains trade, or if the monopoly position was improperly gained. If Amazon attains monopoly position through superior products, innovation, or business acumen, it is very much legal in the US[1]. I think it's hard to argue that Amazon undercutting the participants in its marketplace is restraining the trade: the complaint here is, as I understand it, that through better knowledge of the market, and better integrated and more efficient platform, it is able to offer same or better products at lower prices. I can't see how it restrains the trade, according to how FTC understands it. It would only be illegal if Amazon did sold these products below their own costs, and then planned to recoup the losses by raising the price after the competition is gone. I haven't seen any evidence that this is what's going on. [1] - https://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/single-firm-conduct/monopolization-defined https://www.ftc.gov/tips-advice/competition-guidance/guide-a...
claytongulick 7y ago
Or, markets will shift away from abuse, and they will have difficulty regaining customer trust cough Blockbuster Video cough
- FridgeSeal 7y ago
  “Don’t worry guys! The magical invisible hand of the market will fix this! Just like how it stopped abuse and exploitation by itself all those other times! This time it will _definitely_ work”
toomuchcredit 7y ago
Regulating them to a pure marketplace is the best outcome we an hope for, i.e. require them to divest any product they sell in the marketplace. India took some steps in that direction last year. Why not in the US?
- jgacook 7y ago
  Because the US regulatory framework and enforcement has been chipped away at by corporate interests over the past 3 decades to the point of non-existence. America went from filing >50 antitrust lawsuits in the 1970s to ~5 in the past 2 decades.

alacombe 7y ago

It is arguable that all retail chains have been doing this with their store branded product lines.

throwaway888abc 7y ago

Surprised ? Also, you choose to give the data by using the platform. Terms and condition apply.

deleted 7y ago
[deleted]

siruncledrew 7y ago

In all fairness, if Amazon doesn’t copy your product, then some Alibaba store or Chinese manufacturer will and in a few weeks time you’ll see the same product and description surface on Amazon under the name YUKOOLSEE and with 1000 5-star reviews already. /s

fallingfrog 7y ago

I mean, this is essentially how capitalism has always worked. Mountain bikes were invented by tinkerers in California, the blues was invented by slaves or former slaves, none of those people died rich. The big guys have all the money and power, and if you dont like it, well, this is how capitalism is designed to operate, so I don’t know what to tell you.

_bxg1 7y ago

But no, there's no antitrust case to be made against big tech... /s

koheripbal 7y ago

Amazon needs more competition. Other markets like Walmart are stepping up, but not quickly enough.

dang 7y ago

Would you please not use allcaps for emphasis? This is in the site guidelines: https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html.