3 ms·

Surely it encourages competition: Since the cost cannot just be passed onto consumers, the company making the decision over where to list has an incentive to a

Surely it encourages competition: Since the cost cannot just be passed onto consumers, the company making the decision over where to list has an incentive to actually consider other options? Also, the only reason we want competition is because it should get lower prices for consumers. Competition isn't a good in and of itself, it's just a means to an end. So if more competition means higher prices for the same goods, then who needs it? I don't quite get your second point: if the consumer is paying the same price, why do they care whether 100% goes to the supplier, or 99% or 0.01? If an item costs me 10USD, I don't care who get's that money, I just care that I don't get to keep it right

toastercat 4y ago
> Also, the only reason we want competition is because it should get lower prices for consumers. That is not the only reason free market capitalists want competition. Competition should also promote a variety of choice, innovation, and dynamism in other services to consumers, not just low product prices.
stetrain 4y ago
This rule doesn’t just mean they can’t raise prices on Amazon, it means they can’t lower prices elsewhere. If another marketplace takes a lower cut, allowing the seller to set a lower price while keeping margins, they can’t do so under this arrangement without taking a hit on Amazon sales. The market should be encouraging finding the lowest-margin distribution path, not artificially propping up prices elsewhere to match Amazon’s margins.
thayne 4y ago
> why do they care whether 100% goes to the supplier, or 99% or 0.01? If an item costs me 10USD, I don't care who get's that money, I just care that I don't get to keep it right But you care if it costs you $10 instead of $9. My point is that Amazon's rules means the price is higher for everyone, in order to cover Amazon's fees. Without them, if you are willing to buy from somewhere less convenient than amazon, you can get a better price.

toastercat 4y ago

> Also, the only reason we want competition is because it should get lower prices for consumers. That is not the only reason free market capitalists want competition. Competition should also promote a variety of choice, innovation, and dynamism in other services to consumers, not just low product prices.

stetrain 4y ago

This rule doesn’t just mean they can’t raise prices on Amazon, it means they can’t lower prices elsewhere. If another marketplace takes a lower cut, allowing the seller to set a lower price while keeping margins, they can’t do so under this arrangement without taking a hit on Amazon sales. The market should be encouraging finding the lowest-margin distribution path, not artificially propping up prices elsewhere to match Amazon’s margins.

thayne 4y ago

> why do they care whether 100% goes to the supplier, or 99% or 0.01? If an item costs me 10USD, I don't care who get's that money, I just care that I don't get to keep it right But you care if it costs you $10 instead of $9. My point is that Amazon's rules means the price is higher for everyone, in order to cover Amazon's fees. Without them, if you are willing to buy from somewhere less convenient than amazon, you can get a better price.