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So the companies that sell on Amazon pay money to Amazon (from the revenues they get from Amazon's customers) to have their products listed more favorably than

So the companies that sell on Amazon pay money to Amazon (from the revenues they get from Amazon's customers) to have their products listed more favorably than competitors (one of which is actually Amazon). I can see how this seems advantageous and monopolistic for Amazon...

scarface74 4y ago
Or the same thing every company in retail has done forever
- tyoma 4y ago
  Remember when Amazon listed private label brands, like every retailer has done for decades if not longer, and there was a collective freak out?
  - peanuty1 4y ago
    I think the freak-out was that Amazon was leveraging its data to create copycat products.
    - lotsofpulp 4y ago
      I assume all businesses do this, before Amazon ever existed.
- Regnore 4y ago
  How many options are there for retail?
  - lotsofpulp 4y ago
    In the US, each area usually has Costco/Walmart/Target, Best Buy/Apple, Home Depot/Lowes, Staples/OfficeDepot, Kroger/Albertsons/regional grocer, Nordstrom/Macys/Kohls/Old Navy/Gap.
- bombcar 4y ago
  The main difference is the retail companies still vet the suppliers before letting them duke it out for shelf space. Monster may have paid Best Buy to be on the shelf, but at least I have some guarantee that Best Buy actually bothered to check that the HDMI cable is actually an HDMI cable (and if it wasn't, would notice and pull it eventually). Amazon lets anyone sell anything, and then takes a cut in multiple ways.
MangoCoffee 4y ago
https://smallbusiness.chron.com/requirements-getting-product-sell-shelf-walmart-stores-10518.html https://smallbusiness.chron.com/requirements-getting-product... "You may be required to pay a slotting fee to, in effect, purchase shelf space if there is a great deal of competition fighting for the same space." no difference than paying for shelf space.
- deleted 4y ago
  [deleted]
- Regnore 4y ago
  The difference is that there are many stores to negotiate with for shelf space - in the online world there is only one serious player (although this does seem to be changing over time)
- underwater 4y ago
  Except there is more competition in brick-and-mortar stores.
josephd79 4y ago
Like how they can see what products are hot sellers and then create that product under their brand and sell it at a cheaper rate?
DeathArrow 4y ago
But the article is about ads not about the position on a page on Amazon or in Amazon search results.

scarface74 4y ago

Or the same thing every company in retail has done forever

tyoma 4y ago
Remember when Amazon listed private label brands, like every retailer has done for decades if not longer, and there was a collective freak out?
- peanuty1 4y ago
  I think the freak-out was that Amazon was leveraging its data to create copycat products.
  - lotsofpulp 4y ago
    I assume all businesses do this, before Amazon ever existed.
Regnore 4y ago
How many options are there for retail?
- lotsofpulp 4y ago
  In the US, each area usually has Costco/Walmart/Target, Best Buy/Apple, Home Depot/Lowes, Staples/OfficeDepot, Kroger/Albertsons/regional grocer, Nordstrom/Macys/Kohls/Old Navy/Gap.
bombcar 4y ago
The main difference is the retail companies still vet the suppliers before letting them duke it out for shelf space. Monster may have paid Best Buy to be on the shelf, but at least I have some guarantee that Best Buy actually bothered to check that the HDMI cable is actually an HDMI cable (and if it wasn't, would notice and pull it eventually). Amazon lets anyone sell anything, and then takes a cut in multiple ways.

MangoCoffee 4y ago

https://smallbusiness.chron.com/requirements-getting-product-sell-shelf-walmart-stores-10518.html https://smallbusiness.chron.com/requirements-getting-product... "You may be required to pay a slotting fee to, in effect, purchase shelf space if there is a great deal of competition fighting for the same space." no difference than paying for shelf space.

deleted 4y ago
[deleted]
Regnore 4y ago
The difference is that there are many stores to negotiate with for shelf space - in the online world there is only one serious player (although this does seem to be changing over time)
underwater 4y ago
Except there is more competition in brick-and-mortar stores.

josephd79 4y ago

Like how they can see what products are hot sellers and then create that product under their brand and sell it at a cheaper rate?

DeathArrow 4y ago

But the article is about ads not about the position on a page on Amazon or in Amazon search results.