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The FTC sues to break up Amazon over an economy-wide “hidden tax”

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451–460 of 653 posts

Re: The FTC sues to break up Amazon over an economy-wide “hidden tax”

#451

> Once it achieved monopoly power, Amazon squeezed on price through fees to third-party sellers. As a third-party seller, you pay fees for listing on Amazon; for using Amazon’s warehouse services, known as Fulfillment by Amazon (FBA); and for advertising services. If you don’t pay, you don’t get put in a place on the site where consumers click. So consumers get free shipping that is mostly paid for by third party sel…

You could ship outside of FBA but wont get listed in a privileged position.

Why should Amazon give them a privileged position?

Re: The FTC sues to break up Amazon over an economy-wide “hidden tax”

#452

An excerpt from: https://pluralistic.net/2023/04/25/greedflation/ Amazon binds its sellers over to something called Most Favored Nation status. That means that sellers can't offer their goods more cheaply than they do on Amazon – even if it costs them (lots) less to sell in Target or direct from their websites. This means that every time a seller adds a dollar to their Amazon sale price, they have to add a dollar to…

According to the FTC's lawsuit, Amazon no longer binds its sellers with a Most Favored Nation clause. Instead, Amazon now will refuse to promote an offer in its "buy box" space if it detects a lower price for that good on another website. The FTC alleges that this simply reconstitutes the MFA since most sales on Amazon take place from the buy box. Amazon responds that it is within its rights to not promote uncompetit…

I wonder if the shrink wrap T&Cs on allowed web usage, combined with lawsuits could help.

“By using this site, you agree you are not an agent of Amazon. You also agree that you will not use pricing information except as allowed herein.”

Re: The FTC sues to break up Amazon over an economy-wide “hidden tax”

#453
post #435

Earlier quoted context omitted.

i would pay more money to not have to put my credit card into or attach my identity to 100 different random websites all of which almost certainly have worse security practices than amazon and many of which absolutely will have that data stolen at some point. even for people who don't think about stuff like that, it's way easier for the average person to buy everything from a single place than to go to a bunch of dif…

Many sites support Paypal which means your payment data is safe

I really wish there was an open standard for something like this.

Re: The FTC sues to break up Amazon over an economy-wide “hidden tax”

#454

In order to effectively break up Amazon someone needs to deliver a trusted e-commerce layer for payments and delivery that rivals it and their delivery side. People buy from them because it’s incredibly easy to check out, and because it’s incredibly reliable for delivery and most importantly they are the verb for e-commerce on the Internet: they own “buy online” as a brand and that’s a hard thing to compete with even…

Maybe it's because I don't live in the 2% of the land area where 30% of people are dogpiled (if like 5% of you moved someplace else the Republican party would be gone, baby, gone...) but in my area AMZN deliveries are always UPS or USPS or FedEx delivered so insofar as AMZN deliveries are reliable it is because those systems are reliable. (I've seen an AMZN delivery truck driving around in a particular neighborhood between home and the office but it has never stopped at my place so far as I know.)

In my area AMZN deliveries are 5 days which is nothing special compared to the 1-3 day deliveries I frequently get from Wal-Mart, Best Buy, and every other online store. In fact, I regularly order stuff from Japan on Ebay that arrives faster than AMZN deliveries. (As Flavor Flav would say: "I ordered from Amazon Prime a long time ago, Amazon Prime is a joke in 'yo town")

I hear a lot of zip codes that have huge AMZN warehouses in them have 5 day delivery too but if you are Jim Cramer or a Congressman or something they have to have you believing AMZN is a little better than average as opposed to a little worse. If they had slow shipping in Hollywood you'd see sitcoms making jokes about slow Prime deliveries.

As for payments isn't AMZN just having Mastercard, Visa, and American express do all the heavy lifting?

As for easy checkout, checkout has very few clicks on Ebay. I check out from stores like Best Buy, Adorama, etc. and they all are pretty easy, in fact they don't make me click 4 times saying "NO I REALLY DON'T WANT TO SIGN UP FOR A FREE TRIAL OF AMAZON PRIME".

Product listings on AMZN already look like a scene from Idiocracy; often I see the same bullshit listing spammed hundreds of times, listings that are word salad and make so sense at all (and that AMZN doesn't want to investigate unless you bought it.) I am not worried that AMZN is privileging a $5.99 product over a $3.75 product, I find it highly stressful to filter through product listings that are obviously 75% bogus and call into question if I can trust any of them.

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Maybe if you live in Manhattan they send a bicycle messenger backwards in time to deliver you packages as soon as you order them but from my viewpoint as someone who lives four hours away from a big warehouse in PA, AMZN is the Dollar General of e-Commerce and the retailer of last resort which I'll only order from if I can't find the item elsewhere. So far as I can tell Amazon Prime is a big Jedi mind trick that makes people think it is all OK because they want to watch Rings of Power that bad or maybe that Xanth series that AMZN bought the rights to but will stay in development hell forever because it's just too squicky.

Re: The FTC sues to break up Amazon over an economy-wide “hidden tax”

#455

I fear a negative decision against Amazon so much more than other big tech. Amazon's offering is so far and beyond all their competition, I'd hate for the government to kill any future innovation they have.

Their 'offering' is totally artificial. Prices are low because suppiers aren't permitted to offer lower prices elsewhere. They have a history of blatantly abusing their monopoly position. The law even includes personal criminal liabilities for CEOs in these cases.

Re: The FTC sues to break up Amazon over an economy-wide “hidden tax”

#456
Much of what Amazon does is what other retailers already do. Amazon just does it more overtly and with smaller businesses. In fact, various aspects of this where pioneered by WalMart and Costco. 1. WalMart determines the expected product and expected price and tells vendors to take it or leave it. The agreement often has a stipulation that the same product can never be cheaper elsewhere which is sometimes easy as WalMart gets specific SKUs. 2. On the other side, Costco makes the majority of its money from memberships. The membership is a significant sunk cost and maintains brand loyalty from a mass affluent customer base (notice the similarity to Amazon Prime). Existing vendors will work closely with Costco to tailor products to this desirable market (see Costco specific SKUs for TVs, routers, etc). Upstart brands will go even further to get their wares in front of an audience with ample disposable income.

The Amazon policy basically says that the vendor must offer free shipping. Coincidentally, nobody can offer shipping for less than what Amazon offers therefore Amazon(FBA) is by default the lowest price. The only other company that can fight this with a logistics network of its own is...WalMart.

Then you have Chinese vendors who sell through networks of dropshippers and resellers at Amazon and other venues. It's why you see many vendors of seemingly the same item.

One thing to note is that it's mostly small and medium vendors of relatively low margin items that are the most hurt by Amazon's policies. Seller's of high margin items just eat into their margins while large vendors push back at Amazon and sometimes win e.g. Toilet Paper that comes directly out of a Georgia Pacific warehouse instead an Amazon warehouse despite being labeled as Prime and sold by Amazon.com, not a third party.

Re: The FTC sues to break up Amazon over an economy-wide “hidden tax”

#457

Earlier quoted context omitted.

You could ship outside of FBA but wont get listed in a privileged position.

Why should Amazon give them a privileged position?

To become a distribution monopoly.

> Amazon, one of the biggest companies in the world, for monopolization and unfair methods of competition.

Edit: sorry for snarkyness.

Re: The FTC sues to break up Amazon over an economy-wide “hidden tax”

#458

Earlier quoted context omitted.

You could ship outside of FBA but wont get listed in a privileged position.

Why should Amazon give them a privileged position?

FBA de-risks the transaction for Amazon and the vendor. You sell a known quantity with a known delivery window. Small businesses often struggle with this and criminals use this to their advantage.

If eBay/non-FBA is a flea market, FBA is a online mall.

Re: The FTC sues to break up Amazon over an economy-wide “hidden tax”

#460
post #423

Legality aside, I'm not sure that Amazon is winning in the long run with this strategy. I mostly buy products direct from the manufacturer these days and virtually all manufacturers have high quality websites with solid ordering experiences. As long as they have the name recognition, they can either sell for higher on Amazon and take the advertising hit or just ignore Amazon altogether. I continue to buy some stuff o…

i would pay more money to not have to put my credit card into or attach my identity to 100 different random websites all of which almost certainly have worse security practices than amazon and many of which absolutely will have that data stolen at some point. even for people who don't think about stuff like that, it's way easier for the average person to buy everything from a single place than to go to a bunch of dif…

I coded a credit card payment a few times in my career and from what I saw it's always just a token. That token could be only used to make transactions from your account to the specific vendor's account. Of course there's always could be some incompetent developer who thought that saving credit card data into a database is a great idea, but overall it's not as risky as people think.
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