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The supermarket makes a deal to buy products from the producer that the producer white labels while also selling the normally labelled product. Amazon doesn't w
by bostonsre 5y ago
The supermarket makes a deal to buy products from the producer that the producer white labels while also selling the normally labelled product. Amazon doesn't work with the producers, they kill the producers, then apply pressure to the suppliers. Their monopoly like power is bad for so many in the supply chain.
- triactual 5y agoHow do you distinguish producer and supplier here? I don’t think the producer exists. There is only the supplier and a rent-seeking middle-man.
- missedthecue 5y agoI wouldn't call drop-shippers the producer. The producers are the factories. The individual Amazon is cutting out is the middle-man. He tends to get our sympathy because he's smaller than Amazon, but really, he's just a needless step in the process of getting goods from factory to consumer. Amazon isn't stealing IP here, they are cutting out a middle man. And you and I win when he is cut out of the process.
- bostonsre 5y agoYou and I don't win when amazon becomes the sole supplier and they have no reason to undercut competitor prices anymore and jack up their prices and they no longer have any incentive to innovate. This business practice of theirs is not solely done with resellers, but with manufacturers as well. It is ridiculously unfair that they are the market, they see what products sell quickly and for what prices, and that they are then able to take over the ones that have great margins. The end state is Amazon eats all profitable business lines and everyone else fights for scraps. That will be good for shareholders and no one else.
- missedthecue 5y agoAmazon is not the sole supplier. Amazon buys from a variety of suppliers and distributes it via their online sales platform. Amazon doesn't have factories. They don't build widgets. They sell them.