5 ms·

> by no means is this different from the store branded products you find at Safeway or Walgreens It is different because Amazon controls exposure to products.

> by no means is this different from the store branded products you find at Safeway or Walgreens It is different because Amazon controls exposure to products. In the store if I want ketchup, Heinz and the store brand are right next to each other and easily distinguishable. Amazon can bury the original product on page 2 of the search results. Also, its not always obvious in Amazon's search results that there is a viable option other than the Amazon branded product.

thinkling 5y ago
Stores absolutely use placement to promote one product over another. Eye level shelves are prime space, low ones near the floor are for cheap products with low margins. And “end caps” (the short end of an aisle of shelving) are for high visibility product placement. The brick and mortar equivalent of pushing search results to page 2 is to just stop carrying the product—considerably worse than being on page 2.
- mthoms 5y ago
  >The brick and mortar equivalent of pushing search results to page 2 is to just stop carrying the product—considerably worse than being on page 2. But no plausible deniability.
- gamblor956 5y ago
  No, that is not the brick and mortar equivalent at all. Amazon does not purchase most of the inventory listed in its search results. Retail stores actually buy (almost) everything they sell (albeit at lower "wholesale" prices), and "resell" to end customers. So when a retail store stops carrying a product, they stop buying the product from the supplier, and that is always because the item was not profitable to sell. (In rare cases, they sell on consignment, but such arrangements would apply to less than .001% of products sold at retail. Selling on consignment has a whole host of separate issues, which is why it is so rare even though it would seem most profitable to retail stores.)
  - dempseye 5y ago
    > Retail stores actually buy everything they sell This is true in general, but not absolutely true. In some cases, manufacturers rent shelf space from stores, then pay the store a commission for each unit sold. Various power tool manufacturers use this model, the name of which eludes me at this moment. I think Moleskine also does it.
    - gamblor956 5y ago
      Yes, in rare cases, such as for low volume goods (or new goods with an unproven sales history), manufacturers might sell inventory on consignment through a retail store. But that is the exception that proves the rule, and suppliers go into those situations with the option of simply selling to competing retail stores.
    - randombits0 5y ago
      Yep. Then the vendor has to add the responsibility of covering “shrinkage”, as the store doesn’t care when the product is stolen, as it doesn’t belong to them!
      - gamblor956 5y ago
        ??? Vendors do not cover shrinkage, except for the rare items sold on consignment. Shrinkage losses are either absorbed by the store or handled by insurance.
        randombits0 5y ago
        Rack jobbing means the vendor stocks the shelves, sometimes literally. The vendor isn’t paid until the item sells. That’s common for a variety of merchants. https://en.wikipedia.org/wiki/Rack_jobber https://en.wikipedia.org/wiki/Rack_jobber
cptskippy 5y ago
What I've noticed is many retailers only carry one or two name brands and flank them with their store brands of which they usually have three tiers. So for example you only find Ryobi tools at the Home Depot but Craftsman and Black+Decker are exclusive to Lowes. Grocery stores do similar exclusivity with certain brands, Sargento's cheese comes to mind.

thinkling 5y ago

Stores absolutely use placement to promote one product over another. Eye level shelves are prime space, low ones near the floor are for cheap products with low margins. And “end caps” (the short end of an aisle of shelving) are for high visibility product placement. The brick and mortar equivalent of pushing search results to page 2 is to just stop carrying the product—considerably worse than being on page 2.

mthoms 5y ago
>The brick and mortar equivalent of pushing search results to page 2 is to just stop carrying the product—considerably worse than being on page 2. But no plausible deniability.
gamblor956 5y ago
No, that is not the brick and mortar equivalent at all. Amazon does not purchase most of the inventory listed in its search results. Retail stores actually buy (almost) everything they sell (albeit at lower "wholesale" prices), and "resell" to end customers. So when a retail store stops carrying a product, they stop buying the product from the supplier, and that is always because the item was not profitable to sell. (In rare cases, they sell on consignment, but such arrangements would apply to less than .001% of products sold at retail. Selling on consignment has a whole host of separate issues, which is why it is so rare even though it would seem most profitable to retail stores.)
- dempseye 5y ago
  > Retail stores actually buy everything they sell This is true in general, but not absolutely true. In some cases, manufacturers rent shelf space from stores, then pay the store a commission for each unit sold. Various power tool manufacturers use this model, the name of which eludes me at this moment. I think Moleskine also does it.
  - gamblor956 5y ago
    Yes, in rare cases, such as for low volume goods (or new goods with an unproven sales history), manufacturers might sell inventory on consignment through a retail store. But that is the exception that proves the rule, and suppliers go into those situations with the option of simply selling to competing retail stores.
  - randombits0 5y ago
    Yep. Then the vendor has to add the responsibility of covering “shrinkage”, as the store doesn’t care when the product is stolen, as it doesn’t belong to them!
    - gamblor956 5y ago
      ??? Vendors do not cover shrinkage, except for the rare items sold on consignment. Shrinkage losses are either absorbed by the store or handled by insurance.
      - randombits0 5y ago
        Rack jobbing means the vendor stocks the shelves, sometimes literally. The vendor isn’t paid until the item sells. That’s common for a variety of merchants. https://en.wikipedia.org/wiki/Rack_jobber https://en.wikipedia.org/wiki/Rack_jobber

cptskippy 5y ago

What I've noticed is many retailers only carry one or two name brands and flank them with their store brands of which they usually have three tiers. So for example you only find Ryobi tools at the Home Depot but Craftsman and Black+Decker are exclusive to Lowes. Grocery stores do similar exclusivity with certain brands, Sargento's cheese comes to mind.