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Amazon’s New Competitive Advantage: Putting Its Own Products First

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Re: Amazon’s New Competitive Advantage: Putting Its Own Products First

#141
If FooCorp chose to list competing products on their own website (and to help facilitate payments, returns, etc.), and it became popular because it allowed consumers to comparison shop more easily, would that also be an antitrust issue?

Is their a legal distinction that establishes Amazon as a platform first, and a seller second?

Re: Amazon’s New Competitive Advantage: Putting Its Own Products First

#142
post #57

Earlier quoted context omitted.

Amazon is is doing with sponsored listings the same thing that Google did with its organic search results. "Oh your site is not the top 3 in search results for this keyword? You have a chance to stand out if you buy these ads." The shady difference here between the two is that Google did not try to show results from their own company, Amazon is.

When I search “email”, “maps”, “video”, and “cloud” through google on iOS safari, I get as the first non-ad result; Gmail, google maps, YouTube, and google cloud respectively.

Other than Apple, who pretty much only support apple products (Which are not used by a statistical majority of the global population), what real alternatives are there? I think most people are looking for google maps, not HERE maps, when they search "maps"

Re: Amazon’s New Competitive Advantage: Putting Its Own Products First

#143

Earlier quoted context omitted.

I mean, Walmart is also mega huge, and also allows 3rd party sellers on their website. is it troublesome that Walmart also promotes their own items or the items where they make the most profit first?

I think the bigger problem that people have in general with moves like this is the _change_. If Walmart previously didn't promote their brands, and now did so aggressively, you'd hear complaints as well. The other complaint seems to be "fairness." If you operate a platform, people expect it to be fair. But what is "fair" probably has more to do with historical cultural norms than actual abstract fairness, again it is…

>As a consumer, I personally like the Amazon brands, because I can at least trust them to be real products with a reasonable quality expectation, not a switchout from some crappy seller or comingled inventory with fakes.

What irony. Amazon's co-mingling is actually benefitting them in ways other than lowering costs — It's actively driving people to their house brand(s).

Amazon is pure (evil?) genius.

Re: Amazon’s New Competitive Advantage: Putting Its Own Products First

#144
post #23
post #8

I just did the “ground coffee” and melatonin searches. Entire first row was an ad for bulletproof coffee and sugarbearhair vitamins. Second row had the amazon brand on the left with prominent amazon logos on the coffee bag and the pill bottle and a tag that says “featured from our brands” and the first word in he title for both items was Amazon. The next three items were sponsored ads. I don’t see amazon being decept…

There probably need to be laws that you can't be both a platform and compete against those on your platform with your own products/content. And make sure to close the "we'll just ban our competition from the platform then!" loophole. It seems inevitable that once a platform, whether it's an ISP, a media platform, or an ecommerce platform, starts making its own products for that platform, then they will also start abu…

> You can't leave it "to the market" to solve this, because by the time that happens (if ever), the platform company would have already extracted tens and hundreds of billions of dollars from the strategy and killed an untold number of smaller companies.

... and by the time most users would jump to another platform, that other platform would start pulling the same thing, because why not? Ad infinitum.

Re: Amazon’s New Competitive Advantage: Putting Its Own Products First

#145

Earlier quoted context omitted.

Theoretical competition =/= actual competition. Yes, that could technically happen, but Amazon's market power makes it extremely difficult. Here, there's a two-sided marketplace (consumers and sellers) where Amazon has both sides. It's not enough for one side of the market to decide they want out. For example, see what merchants have done with Shopify and the Shop app (merchants are all on board, but consumers don't…

What you're describing is the competitive advantage of shoppers preferring Amazon though, at least from how I'm reading your post. If a seller alliance or rival omnicorp can't entice consumers then they need either better marketing or better deals, competing in short. If they can't succeed at either of those in a manner significant enough to challenge Amazon then how is targeting Amazon with legislation actually help…

Yup, that's exactly what the linked article describes, but you have to take into account barriers to entry. Consumers prefer short term, lower prices on Amazon, others are pushed out, Amazon raises prices in the long run (already seeing this in prices and other ways - like higher search results) and strong network effects make barriers to entry too high for firms to re-enter.

Re: Amazon’s New Competitive Advantage: Putting Its Own Products First

#146

Earlier quoted context omitted.

I think it's easy to describe why it's problematic without even referring to antitrust. Amazon's brand (as a store / marketplace) is that it helps you sort through many options to select the product they believe you will like the best. This is different from the service offered by traditional grocery stores which offer many different products, but are not arranging those products in relation to a particular request.…

> Amazon's brand (as a store / marketplace) is that it helps you sort through many options to select the product they believe you will like the best This is an extremely important part of the service that every store provides. The only difference with Amazon is that they offer a wider selection of everything. In brick and mortar stores, only one or a few products of each type are stocked and the rest are simply not o…

The other difference with Amazon is that they have very low quality enforcement, and offer counterfeit items. So "Amazon Basics" is a strong indicator of quality for commodities and they can charge as much or more than for brand name items.

A Safeway house brand is usually offered at a small discount to the name brand, because the consumer trusts the name brand more.

Re: Amazon’s New Competitive Advantage: Putting Its Own Products First

#147
post #22

Earlier quoted context omitted.

Lots of things that are "normal" become highly anti-human when done with Amazon's scale and lack of human review/input.

> Lots of things that are "normal" become highly anti-human when done with Amazon's scale and lack of human review/input. This would make more sense if the consumers benefiting were not human.

Sure, there is a short term consumer benefit in that someone gets to save 9 cents on AA batteries. It’s not at all clear that consumers benefit in the long term from Amazon becoming ever more powerful.

Re: Amazon’s New Competitive Advantage: Putting Its Own Products First

#148

I don’t see what’s wrong with this. Many retailers reserve some of their best shelves paces for their private label products, both as a form of differentiation and to extract higher margins. You could argue that Amazon is unique in that it is large and potentially has a monopoly over eCommerce, but it is hard to say that in the end, consumers are on the loosing end. Most amazon basic products are commodities, and pri…

I believe the difference between Amazon and a grocery store is that a storefront has to pay for its stock up front and then sell it. This means that if a store stocks a competitor, the company that created the competing product has already been paid. Stores often have agreements with distributers to return and get partial refunds for unsold stock, but not usually the full amount. Whereas Amazon is not a storefront, i…

The difference between Amazon and a grocery store is that Amazon has access to global supply chains, Amazon also does logistics, Amazon also does web services, Amazon does its own customer analytics, Amazon uses some very sophisticated algorithms to personalise search results, Amazon sells books and videos and other digital content which it produces and sometimes publishes, Amazon makes special user-friendly control and access hardware, Amazon is also a digital storefront and backend warehouse system, which sellers pay for, at prices that Amazon sets, often with most or all of the risk loaded on the sellers.

Among others. Including aggressive tax avoidance in most jurisdictions in which it operates.

Amazon is nothing like a grocery store. Nor is it like a department store. Nor is it an online store.

It's more like a B-movie monster which is trying to devour retail, manufacturing, supply chain management, logistics, consumer analytics, advertising, content creation, web services, publishing, consumer AI - and a significant proportion of the cardboard box industry.

Re: Amazon’s New Competitive Advantage: Putting Its Own Products First

#149
I don't know that I love Amazon putting their stuff first, but this criticism of Amazon's actions was interesting:

> The new approach violates Amazon’s mantra that every decision must put the customer first, said Tim Hughes, a consultant who used to work in product management at Amazon. “Why would their brand be a better option for consumers?” said Hughes, chief operating officer of a firm that helps brands manage Amazon accounts. “It doesn’t necessarily have to be cheaper, or better, or anything. So then what’s their justification to say, ‘We’re just going to put this up in front of everybody else’? This is just another example of Amazon being able to manipulate the platform for its own good use.”

I don't disagree with this, but at the same time, if you're arguing for advertising determining what gets the top slots, why would a manufacturer that can pay more be a better option for consumers?

Re: Amazon’s New Competitive Advantage: Putting Its Own Products First

#150
post #8

I just did the “ground coffee” and melatonin searches. Entire first row was an ad for bulletproof coffee and sugarbearhair vitamins. Second row had the amazon brand on the left with prominent amazon logos on the coffee bag and the pill bottle and a tag that says “featured from our brands” and the first word in he title for both items was Amazon. The next three items were sponsored ads. I don’t see amazon being decept…

FWIW, I just did a similar thing. The first 5 or so Amazon brands were clearly labeled as such. Then I searched some of their lesser known brands and found many weren't clearly labeled.

Try it yourself. The hard part is finding out what Amazon's brands are since they (surprise!) don't publish a list. This is the best list I could find in my short time searching

https://www.businessinsider.com/amazon-owns-these-brands-lis...

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