2 ms·

yes, in a scenario where wal-mart or costco is acting as marketplace rather than seller (i.e. their online stores). when you see brand-name products on a shelf

yes, in a scenario where wal-mart or costco is acting as marketplace rather than seller (i.e. their online stores). when you see brand-name products on a shelf at wal-mart beside their own-brand, it's because wal-mart has purchased that product and is re-selling it. wal-mart has taken the risk of buying the stock in the first place. brands still have a chance to succeed. when a brand acts as a marketplace, they aren't taking on the risk. they're selling shelf space, not buying things to put on the shelves. when they participate in the marketplace as well as operating it, they are competing with their own customers. that's the behaviour that's essentially a recipe to destroy competition.

toast0 5y ago
> when you see brand-name products on a shelf at wal-mart beside their own-brand, it's because wal-mart has purchased that product and is re-selling it. Goods on the shelf at stores in general are a mix of items on consignment, the vendor provided the goods and the vendor will be paid only if or when the goods sell; goods that were purchased on net-30 or net-N terms where the goods are delivered but not paid for until 30 (or N) days later; and also some goods that were purchased and paid for before delivery to the store (or store warehouse). Of course, even when the goods aren't on consignment, larger stores often negotiate favorable terms for unsold goods; typically the vendor must refund the store as well as pay for return shipping or disposal. A large amount of risk still falls to the vendor. Anyway, store brands are fine, IMHO, but there's two things Amazon does that weird me out: a) in some categories they apparently have several store brands and it's not always clear it's an amazon brand, whereas Costco uses a single brand and most other stores use just a couple; b) there have been reports that Amazon will request supplier information from merchants of products that are selling well, and then Amazon goes to those suppliers and negotiates bulk purchases; it seems to me, that's making your merchants do all the work to discover items of interest and where to get them made and then Amazon swoops in and takes over.

toast0 5y ago

> when you see brand-name products on a shelf at wal-mart beside their own-brand, it's because wal-mart has purchased that product and is re-selling it. Goods on the shelf at stores in general are a mix of items on consignment, the vendor provided the goods and the vendor will be paid only if or when the goods sell; goods that were purchased on net-30 or net-N terms where the goods are delivered but not paid for until 30 (or N) days later; and also some goods that were purchased and paid for before delivery to the store (or store warehouse). Of course, even when the goods aren't on consignment, larger stores often negotiate favorable terms for unsold goods; typically the vendor must refund the store as well as pay for return shipping or disposal. A large amount of risk still falls to the vendor. Anyway, store brands are fine, IMHO, but there's two things Amazon does that weird me out: a) in some categories they apparently have several store brands and it's not always clear it's an amazon brand, whereas Costco uses a single brand and most other stores use just a couple; b) there have been reports that Amazon will request supplier information from merchants of products that are selling well, and then Amazon goes to those suppliers and negotiates bulk purchases; it seems to me, that's making your merchants do all the work to discover items of interest and where to get them made and then Amazon swoops in and takes over.