What Does Amazon Antitrust Investigation Mean For Third-Party Sellers?
Updated: Dec 2, 2020
This week, Bloomberg reported that "A team of Federal Trade Commission investigators has begun interviewing small businesses that sell products on Amazon.com Inc. to determine whether the e-commerce giant is using its market power to hurt competition."
That means that the US government is investigating the power that Amazon has over third-party sellers that use its platform and the customers that buy on Amazon.
So, what does this mean for third party sellers?
Well, as you know, Amazon's online dominance is a HUGE benefit for third-party sellers. We get more customers, world-class logistics, and limitless data. But having complete autonomy has hindered 3rd party sellers as well. If you've been selling on Amazon for a while, you also know that they (Amazon) makes the rules and you need to follow them or suffer the consequences (part of why it is important to work with advisors like ALGO to help make sure you follow all of Amazon's rules).
How can this antitrust investigation help 3rd party sellers?
More Fair - Amazon can't do whatever they want and will be accountable to the government (Like Germany example from Bloomberg). They can't suspend you for no reason!
Less Competition - If Amazon is required to be more transparent, they will be competing on fewer listings and will need to share on the listing they are on.
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