Traditional retailers buy their inventory from manufacturers to place on the shelf and in turn sell to customers. There may be some agreements on buying back un

Traditional retailers buy their inventory from manufacturers to place on the shelf and in turn sell to customers. There may be some agreements on buying back unsold inventory, but generally the retailer takes on risk for the inventory they are selling. Amazon, conversely, only provides the platform connecting manufacturers to customers. They may hold consigned inventory in their warehouse, but they typically don't take on the risk for any unsold stock. This is a big difference between grocery private labels and Amazon basics. Amazon is reaping the benefits without taking on any of the risk. Disclaimer: I don't work in retail, this is my understanding based on reading but I could be mistaken.