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Amazon scooped up data from its own sellers to launch competing products

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Re: Amazon scooped up data from its own sellers to launch competing products

#11
post #5

I thought this was common knowledge. Don’t the chains like Walmart do the exact same things?

Many Amazon sellers only sell on Amazon, or have a large majority of their business sales there. This is equivalent to having insight to almost your entire business.

Most brands at Walmart and other stores are sold many other places.

Re: Amazon scooped up data from its own sellers to launch competing products

#12

why marketplaces are able to compete with their sellers is beyond me.

Why sellers would use a market place that is obviously going to compete with them is beyond me.

Because for any individual seller there’s a heavy short/medium term advantage to using the marketplace in the form of dramatically increased reach and simplified logistics.

Re: Amazon scooped up data from its own sellers to launch competing products

#14
Amazon makes life so hard for their suppliers it doesn't even surprise me. I once shipped a box of 10 laptops to sell on FBA (retail value ~$10k) and UPS showed the box as delivered, Amazon checked in the units and showed them available for sale on the website. Then 24 hours later all of them got removed saying I sent the inaccurate quantity in the box and none where now available for sale. The laptops disappeared and I had to do an insurance claim with UPS. Amazon's support was horrible and made me never want to sell with them again. Lots of stories like mine on the Amazon subreddit.

Re: Amazon scooped up data from its own sellers to launch competing products

#16
post #5

I thought this was common knowledge. Don’t the chains like Walmart do the exact same things?

Many Amazon sellers only sell on Amazon, or have a large majority of their business sales there. This is equivalent to having insight to almost your entire business. Most brands at Walmart and other stores are sold many other places.

But this is the sellers choice. They could find other online retail channels.

Re: Amazon scooped up data from its own sellers to launch competing products

#17
Stating the obvious I guess. All retailers do this and create their own white-label brands to squeeze profit from well-performing categories. Target, for instance, is very upfront about it and they have like a gazillion white-label brands that compete in hundreds of categories, which makes it very gray for the customer.

Does anyone really think that any retailer launches a competing product in a category without looking at all their supplier data?

If you want distribution you risk this. The only way to avoid it, it's to do direct to consumer or having a product that is extremely hard to copy.

Re: Amazon scooped up data from its own sellers to launch competing products

#18
post #5

I thought this was common knowledge. Don’t the chains like Walmart do the exact same things?

Many Amazon sellers only sell on Amazon, or have a large majority of their business sales there. This is equivalent to having insight to almost your entire business. Most brands at Walmart and other stores are sold many other places.

There are many businesses who are 100% dependent on Amazon as a platform and Google as an acquisition stream. If you want to break out and sell on your own online platform, you're still dependent on Google, be it through search or advertising.

I would love to hear of consumer facing (B2C) online businesses who are successfully operating without any Google or Amazon dependencies to see if it's even possible in the current online ecosystem.

My hypothesis is that it isn't, and as such Amazon and Google should be broken up. They have close to a functional monopoly on consumers, but I'm putting forward that they also have a functional monopoly on online businesses in commerce.

Re: Amazon scooped up data from its own sellers to launch competing products

#20

Of course they do. Like everybody else. Who doesn't do market research?

Some companies foster cordial relationships with their partners by staying strictly in their lane.

For example, ARM licenses CPU core designs to chip manufacturers, but they don't make their own chips, as doing so would turn their customers into their competitors.

Businesses like contract manufacturers are similar - Foxconn wouldn't start making their own smartphone.

Of course, not every company takes that approach.

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