As proof that I am clearly not qualified to run a nearly trillion-dollar company, I offer this advice to Amazon -- ditch the marketplace. No more third party sellers. I have been a reliable Amazon Prime consumer for years, but I have begun making purchases elsewhere because I can not even trust "Ships from and sold by Amazon" any more. At the very least, quite intermingling stock. And at this point you're going to ha…
I think Amazon dug themselves into a hole with this one. The Amazon Marketplace is the biggest liability to their brand reputation, but now it is also a big revenue driver. It would be in the long term interest of Amazon to ditch it, or severely clamp down on authorized marketplace participants. But Amazon is now in a sticky situation because the stock price, which they rely on for many reasons, is heavily dependent…
Amazon has the data from Amazon Marketplace to know the top selling products, and Amazon has the scale to arrange manufacturing deals with perhaps the same overseas factories Amazon Marketplace sellers are using to economically produce private label brands for Amazon, thereby decreasing the market share of Amazon Marketplace sellers. Amazon could also make their Amazon Basics more visible to consumers by default, and have more control over the QA of the items.
With growing negative feedback about the quality-side of Amazon's Marketplace items/sellers, there is an opportunity to accelerate into private-label territory with more control over manufacturing oversight/customer service while using the Amazon Marketplace as the "proving grounds" to determine which products are most profitable for Amazon to private-label. Sure AMZN's earnings are doing well, but the real secret sauce for Bezos isn't just logistics - it's holding control over a market.
Right now, Amazon's quality-gatekeeping on their platform is the equivalent of Mac doing an "ocular pat down" on entrants. If there is monetary incentive to stray away from this, Amazon would be more willing to flip the switch on the marketplace. And thus we come one step closer towards living in an Amazon corporate town buying Amazon-branded items from the Amazon general store.