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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

#571

This is the exact reason why Shopify grew rapidly. Sellers knew they needed a platform where they own the data and could abstract the operations outside of Amazon seller dashboard. People also forget that Amazon doesn't have to pay to advertise its own products, but 3rd party sellers do. This immediately puts you at a disadvantage if you want your product at the top since you pay seller commission and advertising fee…

> Next time you want to buy something from Amazon, I would encourage you to find the seller's website directly or find them on eBay. eBay charges less seller fees and is not in the business of selling products directly. Last time I bought an item off eBay, it arrived shipped via Amazon Prime. Pretty sure the seller just bought it off Amazon and shipped it to my house... it was a weird turn of events. It wasn't a bran…

Sellers use Amazon FBA (Fulfilled By Amazon). Their inventory sits with Amazon and irrespective of platform where transaction happened, Amazon ships it in their own box.

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

#572
post #539

Earlier quoted context omitted.

Not afaik.

They do... Dr. Squatch soap is one such example

Per Amazon's policy - no, the seller can not have lower prices on their own website than on Amazon. In practice, for now, it is not enforced (at least in my experience).

https://sellercentral.amazon.com/forums/t/same-price-on-webs...

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

#573

About 10 years ago I met the head of IT for B&H cameras in NYC. Among many things, he was in charge of the hosting for their online store. After he complained about dealing with physical servers, I asked him if he had ever considered using AWS ec2 for the website, and he replied that his boss refused because he believed that Amazon would pull data on B&H products and use it to compete more effectively. I'm not sure t…

Throwaway account for obvious reasons. In the past, AWS has used the data from third party hosted services on AWS to build a similar service and in fact start poaching their customers. Source: I used to be at AWS and know the PM & his manager who built a service this way. I was hired on that team.

As for talking to journalists, I didn't leave with any ill will and don't want to complicate my life. I personally know a friend who got involved with journalists... his past employer came to know about it, sued him... and he became almost unemployable in the valley.

Edit: fixed a typo

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

#574

Those were the dirtiest business tactics of Amazon Nobody can beat Amazon’s margin. Amazon “invites” you to sell on their marketplace. You hustle. You innovate. You test the market. You risk your time and money. Until FINALLY you nail it! After weeks or months of hard work you finally find the right product at the right price… SUCCESS! You start making money! Everything is amazing… But “someone” has been watching you…

I mean, this is essentially how capitalism has always worked. Mountain bikes were invented by tinkerers in California, the blues was invented by slaves or former slaves, none of those people died rich. The big guys have all the money and power, and if you dont like it, well, this is how capitalism is designed to operate, so I don’t know what to tell you.

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

#575

Earlier quoted context omitted.

> You know what is a pretty good competitor? Competitor on what vector? Speaking from a US-centric viewpoint here, but my thoughts; * Distribution & Warehousing - Walmart & Costco * Sales & Advertising - Google & Facebook A few notable online storefronts that are independent and I use frequently are B&H Photovideo and Newegg. Realistically though the options I listed above are the only companies I see having the scal…

Yes, sorry, I meant from a buyer perspective. As a side node: I am actually thinking of buying a tiny bankrupt travel equipment company. Friends advised against it because of "Amazon essentials". I would not sell on Amazon but it is a strong argument. Maybe someone has some words of wisdom regarding to this.

How does one find bankrupt businesses to purchase?

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

#576

Earlier quoted context omitted.

With Shopify you don't pay ~20% sales commission to Amazon per se, but you sure as heck will end up paying for that if not more to Facebook. Where by FB has no direct incentive, yet. It could be a FB Marketplace PM team someone has already copied Shopify outright and is just waiting for the right time to roll that out to all FB user worldwide. With Amazon Marketplace the strategy has always been to convert customers…

Does amazon allow seller sites to have lower prices?

Just sell a "variant"

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

#577
post #541

Earlier quoted context omitted.

Say you completely ignore scaling. The two things you simply cannot replicate at that scale are redundancy and operational resource. AWS has their entire operations team working at all hours of the day and night supporting their infrastructure. They also offer some of the most highly redundant services in the world. There is simply no way you could ever dream of replicating those service levels with such a small oper…

AWS has amazing marketing the truth of the matter is AWS Region has worse downtime than a single top tier DC. Mainly due to nightmarish complexity of their control layer. They had outages that lasted many hours in a row multiple times. You need to carefully separate marketing claims from operational reality and actual track record. When US East has major issues there is not enough spare capacity to spin up everything…

Amazon has some of the best uptime in the world, especially for basic services like EC2, even if you’re only considering the least reliable regions like US East. Their last major event was in 2017. There are few providers in the world that can compete with them in that respect, and there’s nothing that you or I or anybody else could build with 6-10 servers that could come close. If you were planning to try exceed their service levels yourself, there is no conceivable use case where a small to medium sized company could justify the requisite expenses to provide the redundancy and operational coverage necessary. What you are actually talking about is that you can meet your own needs without AWS, which is entirely plausible, but completely different from the absurd claims that you can build a low budget infrastructure that exceeds their service levels. That claim is so ridiculous, you might as well be saying that you can make a car faster than Toyota can, or that you can run a two minute mile.

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

#578

Those were the dirtiest business tactics of Amazon Nobody can beat Amazon’s margin. Amazon “invites” you to sell on their marketplace. You hustle. You innovate. You test the market. You risk your time and money. Until FINALLY you nail it! After weeks or months of hard work you finally find the right product at the right price… SUCCESS! You start making money! Everything is amazing… But “someone” has been watching you…

But no, there's no antitrust case to be made against big tech...

/s

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

#579
post #450

Earlier quoted context omitted.

Don’t let anyone chastise you for this. Most desk locks are easy to pick. Also, there are like 3 keys to have on your keychain to open like 80% of all manufactured locks like the ones in furniture. Deviant Ulam, a pen tester, gives a lot of talks on this topic.

I pick my battles, I’m not going to complain about a policy unless I think it could really hurt people. If I complained about everything i think is dumb, I’d never be able to keep a job, because most of it seems dumb to me.

So true, so often.

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

#580

Those were the dirtiest business tactics of Amazon Nobody can beat Amazon’s margin. Amazon “invites” you to sell on their marketplace. You hustle. You innovate. You test the market. You risk your time and money. Until FINALLY you nail it! After weeks or months of hard work you finally find the right product at the right price… SUCCESS! You start making money! Everything is amazing… But “someone” has been watching you…

Amazon needs more competition. Other markets like Walmart are stepping up, but not quickly enough.
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