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A less well known area of concern with Amazon is the way it is now purchasing for its own business. It is actively cutting out local distributors in favour of d
by jimnotgym 3y ago
A less well known area of concern with Amazon is the way it is now purchasing for its own business. It is actively cutting out local distributors in favour of direct deals with manufacturers. This is really squeezing those businesses.
Edit: this seems particularly monopolistic because it is using its own global logistics to undermine the supply chain to other retailers.
- throwaway9274 3y ago…Why do we want local distributors? Open to changing my mind, but that sounds more like actual efficiency gain from vertical integration.
- jimnotgym 3y agoBecause other retailers need the local distributors. If you knock them out of the market there is no local stockholder and you need to buy directly from the manufacturer (in a third country) yourself. A smaller company probably can't afford to buy in those kind of quantities.
- dv_dt 3y agoIn terms of direct evidence of what the FTC thinks, I don't know. But it's interesting that India had some anti-trust action against companies that both owned online meta-marketplaces and had shops selling in the same marketplace. The theory applies here in that Amazon operates logistics and online presence for a shops, but operates it's own shop with potential information from all the other sellers. Self preference, or selected partner preference may be an issue: https://www.forbes.com/sites/siladityaray/2020/08/26/indian-online-retailers-file-antitrust-case-against-amazon https://www.forbes.com/sites/siladityaray/2020/08/26/indian-...