5 ms·
Key paragraphs: > Now, if this were all that was happening, sellers and brands could just sell outside of Amazon, avoid the 35-45% commission, and charge a low
by malwarebytess 5y ago
Key paragraphs:
> Now, if this were all that was happening, sellers and brands could just sell outside of Amazon, avoid the 35-45% commission, and charge a lower price to entice customers. “Buy Cheaper at Walmart.com!” should be in ads all over the web. But it’s not. And that’s where the main claim from Racine comes in. Amazon uses its Buy Box algorithm to make sure that sellers can’t sell through a different store or even through their own site with a lower price and access Amazon customers, even if they would be able to sell it more cheaply. If they do, they get cut off from the Buy Box, and thus, cut off de facto from being able to sell on Amazon.
>Amazon has between a half and three quarters of all customers online, so not being able to sell on Amazon is a nonstarter for brands and merchants. As a result, to keep selling on Amazon, merchants are forced to inflate their prices everywhere, with the 35-45% commission baked into the consumer price regardless of whether they are selling through Amazon.
[...]
> Amazon also uses its bazooka of cash from Prime members paying high consumer prices, laundered through third party sellers, to distort industries across the economy. Amazon spent some of it to build out a Hollywood studio, offering its original content ‘free’ to Prime members, who are of course indirectly paying for it with higher consumer prices. Prime also offers free video games and millions of songs. But none of this is actually free, it’s paid for by Prime members in ways that Amazon disguises with its coercive arrangements.
Screams monopoly. I think if the regulators and courts are just they'll sunder Amazon's "flywheel" and force them to deal honestly.