6 ms·
I don't think brick-and-mortar stores are operating a marketplace the way Amazon is, though.
by CarVac 6y ago
I don't think brick-and-mortar stores are operating a marketplace the way Amazon is, though.
- notyourwork 6y agoHow are they different?
- spockz 6y agoThey still source their products from the same manufacturers as the brand products. It is just the label or the fragrance that is slightly different. In Amazon’s case it sources it’s copied product from different manufacturers. So once you get a successful product you cloned by a powerful Amazon. And Amazon can always do it cheaper than you.
- rrobukef 6y agoAs long as I remember there have been no complaints about restricting advertisements. (Although plenty of other anti-competitive behaviour) Amazon touts a 'free' marketplace where anybody can sell and advertise their product. Yet it uses its monopoly on ads within their domain against others.
- CarVac 6y agoBrick and mortar stores buy from wholesalers and resell. Amazon facilitates direct transactions between buyers and sellers. It also participates as a seller.
- deleted 6y ago[deleted]
- darksaints 6y agoThey own the inventory and therefore take the risk of selling it. Amazon doesn't own the inventory of its marketplace sellers, and they can do anything they want to put them out of business at no financial risk to themselves.
- judge2020 6y agoWalmart very well could drop both Zip Loc's and Hefty's resealable plastic bags and not have any drop in sales since people will just buy the great value brand that replaces their position on shelves.
- darksaints 6y agoYou don't know that they wouldn't have any drop in sales, let alone profits, by doing such a thing.
- scarface74 6y agoIf you follow the CPG space, they spend millions on brand advertising that is becoming less affective as newspaper advertising and tv advertising is on the decline. P&G has been on the decline for years. Dollar Stores selling no name products have been on the rise.
- deleted 6y ago[deleted]
- srtjstjsj 6y agoDollar Stores are on the rise because people can't afford quality anymore.
- wongarsu 6y agoSome people might have enough brand loyalty to Ziploc that they will go to a store that carries them
- lotsofpulp 6y agoThere is a very noticeable difference between the quality of Ziploc and Hefty brands versus Great Value brand.
- deleted 6y ago[deleted]
- deleted 6y ago[deleted]
- jlbnjmn 6y agoBrick and mortar retailers sell third party products but they don't allow third party sellers (in their brick and mortar stores). To test this, go to Target and ask if you can put some items on the shelf for them to sell for you. If that's an option, it's a marketplace. Everything sold by Target is sold by Target. Amazon is the online version of a flea market in the parking lot of a big box store. I don't know if that is the distinction lawmakers are making, but to me that is the difference.
- scarface74 6y agoWhat’s the practical difference? Depending on the terms, if an item doesn’t sell, they can send it back to manufacturer/wholesaler. This is/was especially prevalent with media like magazines, CDs, games, books etc.
- gamblor956 6y agoThat's different, and the actual transaction doesn't occur as you describe. The stores had already paid for the magazines, books, etc. When they returned the physical media to the manufacturer, it was because the manufacturer accepts and destroys them or attempts to resale them to discount retailers. The manufacturer usually rebates the stores for the returns because they want the stores to keep buying from them, but this usually comes in the form of rebates/discounts on new inventory purchases, not as refunds on the returned products.
- jlbnjmn 6y agoConflict of interest.
- scarface74 6y agoThought experiment. If Amazon had to divest the marketplace and not integrate third party sellers with their website and decided to sell the most popular/profitable products in house, would that help the third party sellers? Who would buyers go to? Amazon.com or the hypothetically amazonmarketplace.com?