Amazon's New Competitive Advantage: Putting Its Own Products First (propublica.org) 54
Brands have long been able to bid for the premier slot at the top left of Amazon's listings, but during the pandemic the online retailer has begun using this position for its private-label items, raising antitrust concerns. From a report: Until recently, when Amazon customers typed "melatonin" into the site's search bar, a variety of sleep supplements would appear in the most coveted real estate on the listings results -- top left on the first page. One of consultant Jason Boyce's clients, a seller of natural supplements, often sought to outbid competitors for the best spots by promising Amazon about $6 each time someone clicked on the product. While the brand never attained the top left slot, it regularly landed in the top row. But in late March, Boyce noticed that Amazon's own brand, Solimo, had taken over the top left, while his client's product had been bumped to a lower row. Then Boyce typed "ground coffee" in the search bar, only to find AmazonFresh Colombia ground coffee in the top left, pushing down another client. Although customers don't necessarily realize it, brands have for years been able to bid on search terms to secure the most visible listing positions at the top of Amazon's product search results pages, where their products carry a "sponsored" tag above the description.
Now, they still bid for top-row placements, but the best spot -- the top left on the first page -- is unavailable across dozens of product search terms, according to consultants and ProPublica's own review. During the pandemic, Amazon has begun to use that position for its own private-label products, without bidding, under the heading "featured from our brands." The domino effect of Amazon's new strategy has demoted competitors' listings for products including diapers, copy paper, kids' pajamas, mattresses, trail mix and lightbulbs. By putting its own private brands in some of the most valuable slots, Amazon is sacrificing short-term ad revenue to build up sales of its private brands over time, consultants said. 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.
Now, they still bid for top-row placements, but the best spot -- the top left on the first page -- is unavailable across dozens of product search terms, according to consultants and ProPublica's own review. During the pandemic, Amazon has begun to use that position for its own private-label products, without bidding, under the heading "featured from our brands." The domino effect of Amazon's new strategy has demoted competitors' listings for products including diapers, copy paper, kids' pajamas, mattresses, trail mix and lightbulbs. By putting its own private brands in some of the most valuable slots, Amazon is sacrificing short-term ad revenue to build up sales of its private brands over time, consultants said. 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.
So...like any supermarket? (Score:4, Insightful)
Boy, that kid who wrote that must be young and shtoopid.
PS. Isn't this a dupe or triple from some weeks ago?
And now get off my lawn.
Supermarkets don't do that (Score:2)
Re: (Score:2)
Re: (Score:1)
Re: (Score:2)
Worth remembering though. They drive you to their own products and try to flog you Prime so you can get them with "free" shipping, but actually if you just scroll down a bit you can usually get the same thing for less total cost from a 3rd party seller. Might take a little longer to arrive so plan ahead.
At least it's probably real (Score:5, Interesting)
I really cannot fault Amazon for putting products they control into the store, especially when there have been so many crappy to downright fraudulent products from other sellers. It is at the point where for some categories Amazon might be the only brand I trust buying through Amazon...
However it also means that over time I've resumed buying a lot of products from other buyers as well - like NewEgg for hard drives. So it's not all bad that Amazon is pushing their own products as it can move people to get better quality elsewhere at times, but provides a generally good base level of quality for the stuff you do get from Amazon (generally the Amazon products I've tried have been pretty decent).
Re: (Score:1)
Yeah, pretty much. Amazon's brand is preferable to buying MANFREEX* brand, especially given neither are even remotely organic results. If I don't need something soon and don't care about quality control, I just buy from Aliexpress.
*I don't know if there is actually a Chinese faux brand called MANFREEX. I mean, probably, but I was just writing a jumble of letters as an example. If MANFREEX does exist I'm quite sure they're as high in quality as the COOLSUM and HYTYSXE brands.
Re: (Score:2)
Good. (Score:3)
Because I almost always sort the list to "SHIPS AND SOLD BY AMAZON" so I can avoid all the fakes and scam products from 3rd party sellers.
Re:Good. (Score:5, Informative)
I've reverted to buying commonly counterfeited products (e.g. memory cards) from local suppliers instead of Amazon.
Re: (Score:1)
Yes. I am well aware. Did you read my comment? SHIPS and SOLD by AMAZON.
Re: (Score:3)
And his comment and the article he linked to said *point blank* 'shipped and sold by amazon' will pull from the same stock as 'fulfilled by amazon', and thus a counterfeiter product stock may get mixed with legitimate stock of the same SKU.
Re: (Score:2)
Re: (Score:2)
When you ship inventory to Amazon for later fulfillment, those units will have been barcoded differently. Barcode F, for FBA.
The former would be Sold and Shipped by Amazon. The latter would be Sold by "3rd Party X" and Shipped by Amazon.
The inventory shouldn't be mixed, because it is barcoded differently. The pickers aren't casually
Re: (Score:2)
I can believe that and I think that's a good counterpoint to raise, but the reply discarded the original claim rather than refute it. Your reply was much better.
Re: (Score:1)
I mean, it's not a guarantee, but it does protect a fair amount. It is the only effective way to block faux brands from showing up and gives you the chance to at least see real actual companies.
For what it's worth, there is a lot of software around to test for counterfeit storage.
https://www.geckoandfly.com/22... [geckoandfly.com]
Re: (Score:2)
Re: (Score:2)
I'm not sure why this is shocking. (Score:3)
Amazon promotes Amazon. Why did you ever think they'd do otherwise?
Re:I'm not sure why this is shocking. (Score:4, Interesting)
How is Amazon a monopoly? (Score:5, Informative)
Because the Sherman Antitrust Act doesn't allow that sort of monopolistic behavior
To do that they would have to be a monopoly. How are they a monopoly?
Can you think of a single thing Amazon sells you cannot get from several other online sellers?
Amazon is a store. Now they might have more products than the average store, even an online store but it's not like they are irreplaceable for any particular purpose, or anywhere near it.
Just because you are a Prime member and shipping is cheaper through Amazon, does not a monopoly make.
Re: (Score:1)
They don't have to be the only game in town. Just big enough to give them undo influence. The existence of Apple didn't prevent Microsoft from being investigated for anti-trust.
Amazon has been doing this for years. They use the data of their customers' Amazon-hosted businesses against them, in order to undercut prices and promote themselves in search results. Eventually the small business can't compete against Amazon and goes under. Amazon is big enough to sell at a loss if they want to eliminate their own
Re: (Score:2)
At the time of that investigtion, Apple had about 5% marketshare. Truly beleagured. In addition, the lawsuit wasn't about "computers" but PCs with Intel CPUs.
"The plaintiffs alleged that Microsoft had abused monopoly power on Intel-based personal computers in its handling of operating system and web browser integration."
Re: (Score:3, Informative)
Because the Sherman Antitrust Act doesn't allow that sort of monopolistic behavior
To do that they would have to be a monopoly.
The Sherman Antitrust Act criminalizes several actions outside of holding a monopoly position:
-- contracts or trusts that restrain inter-state commerce
-- attempts to monopolize
-- combining or conspiring to monopolize
Re: (Score:2)
Amazon isn't just a store though, it's a marketplace. A lot of the stuff they sell if via third parties.
So maybe it's more like a mall with a free car park to attract customers and shops not wanting to pay the mall rent are at a disadvantage. We have seen where that goes, high streets and independent retailers destroyed leaving only crappy malls and chain stores.
Ideally we want to avoid the same thing happening on the internet. It was supposed to open up commerce and level the playing field, not just create
Re: (Score:2)
Let's face it. Anti-trust law is dead.
Oh, it still exists on paper, but it's no longer got any real teeth. It's used as a backdrop to create a big show for people a few times a year where the politicians can pull in the heads of these uber-conglomerate companies, wag their fingers at them and grumble at them, threaten to slap them on the wrist if they do it again, then send everybody on their way to continue business as usual.
And make no mistake, it doesn't matter what political party is in power, it's be
Re: (Score:2)
Let's face it. Anti-trust law is dead.
Perhaps that's because enforcing a monopoly on anything today is far more difficult than it was just 10 or 20 years ago.
Most people that visit Slashdot will remember, or have learned from more tech experienced co-workers and family, about the "bad old days" of Microsoft monopoly lawsuits, the "browser wars", and other attempts at technology lock in. Perhaps a more recent example was the mayhem over every cell phone maker forcing people to buy chargers and other accessories from the same people that made th
Re: (Score:2)
Get a clue people, Amazon is not a monopoly. Amazon is not even the largest retailed in America, that's Walmart. How can you possibly be a monopoly if you aren't even in first place?
Re: (Score:2)
Re: (Score:1)
Clearly, the shareholders did want it — and their wishes, in proportion to the amount of stock owned, is the only thing that matters.
Re: (Score:1)
new? (Score:1)
Re: (Score:2)
I get that we on /. don't RTFA, but please at least RTFS before posting. It's literally two paragraphs...
Not new + anti-trust fun (Score:1)
Anyway this is not like a super market or other brick n mortar. Amazon has a monopoly position in online shopping/distribution which my local super market does not have. Being a monopoly is not illegal. Monopolies are perfectly ok in American law AS LONG AS the monopolist doesn't abuse their position in one vertical they own to unfairly boost their products/services in another vertical they don't own.
For e
How do you have a "monopoly" position online (Score:1)
anyway this is not like a super market or other brick n mortar. Amazon has a monopoly position in online shopping/distribution
How do you figure that? Amazon is honestly as much at the mercy of Google for many online customers as much as anyone.
It's just as easy to order from somewhere else as it is from Amazon. This is not 10 years ago, lots and lots of big, powerful stores like Target/Walmart have figured out eCommerce by now and are easily just as viable to shop from.
Amazon offers slightly more convenien
Re: How do you have a "monopoly" position online (Score:1)
That's illegal. I don't write the laws. I'm just saying in laymen's words what the laws are.
If you opened your own online store and called it SuperKendallsSlashdotAzonMegaStore, yo
The Big Picture (Score:2)
The new approach violates Amazon's mantra that every decision must put the customer first
The customer comes first after Amazon.
Does anyone not yet understand that Amazon's goal is to first capture the sales channel, then squeeze out all other sellers?
Amazon's goal is participate in the market, then to consume the market, and finally to become the market.
In other news... (Score:2)
Costco is Prominently displaying Kirkland products over equivalents of other manufacturers.
Waltmart is Prominently displaying Member's Mark products over equivalents of other manufacturers.
BJ's is Prominently displaying products over equivalents of other manufacturers.
Publix is Prominently displaying Publix Brand products over equivalents of other manufacturers.
Aldi is Prominently displaying liveGfree, SimplyNature, Specially Selected, Fit & Active, Little Journey &Mama Cozzi’s products over
Re: In other news... (Score:1)
Lotus, WordPerfect, ... does anyone remember? (Score:5, Interesting)
Amazon platform is the OS of these vendors. Amazon is pulling a Microsoft on them. ...
Re: (Score:2, Insightful)
At best some vendors could argue the promises made to them were not kept etc, but that is a contract dispute between parties, not something illegal. But, knowing what happened o Microsoft, you could expect something similar to happen to Amazon too, over
Amazon is today's Google (Score:4, Interesting)
Re: (Score:3)
Buying local, if there is a problem with the product, your drive to the store and get it replaced. Buy online, well, you hope for the best and what you get is what you get. Shopping on Amazon makes product search and comparison easier buying on Amazon makes owning that product harder, service and support will be lacking. Also in the buying elsewhere, you get a chance to review the information provided by Amazon, which, surprise, surprise, suprise is often tainted or false and provided to enhance Amazon prof
Re: (Score:3)
Yeah... I’ve shifted most of my buying away from Amazon; I just don’t trust them any more. The shipping times are unreliable for me, the products are disposable crap, and it doesn’t do anything to make my city a better place.
Unfortunately, many online retailers seem to be targeting similar approaches (Walmart, New Egg, Sears come to mind), and risk losing my business.
Re: (Score:2)
it doesn’t do anything to make my city a better place
Exactly this.
Amazon fights every day to avoid paying taxes. Amazon dangles its warehouses to municipalities like a fisherman, trying to get abatements and concessions from city councils and state representatives. Amazon will never sponsor your kid's T-ball team.
There's a deeper issue. (Score:2)
Perhaps the point to really consider is how easily people's spending can be determined simply by search result orderings that might save them five seconds of thought.
Re: (Score:2)
If you can't beat 'em, join 'em. Subscribe to my newsletter and I'll give you the secrets rich people don't want you to know!
There's more to online sales than Amazon. (Score:2)
I like Amazon when I know the brands I'm buying because brands I don't know mean I don't know what I'm getting, and AmazonBasics is not a bad brand to buy. For most of my shopping though I'll buy elsewhere. I tend to buy clothing off the shelf at a brick and mortar because I want to see it first. Something like a pair of jeans though I'll just order the same thing I bought before direct from Carhartt. Best Buy used to be a mess, a bunch of overpriced junk, but they seem to have cleaned up their act. I
Why I don't buy from Amazon anymore (Score:4)
I have stopped buying things from Amazon. The reasons are:
1) They're simply too big. I abhor a monocolture, concentration of power, and lack of market competition. They should be
broken up like Google should be and Microsoft should have been.
2) They, like many corporations, use an inordinate amount of leverage to either pay no taxes or get paid to bring their HQs
and warehouses to an area.
3) Quality sucks. I've bought so many cables, adapters, and batteries that have failed in the most annoyingly intermittent
ways. When you might go to return something, that seller is no longer listed, so there's no recourse. I don't want to ship
things back anyway. I just want decent quality. I've had much better luck from other platforms that either source and sell
reputable brands or have accounts with long-term ratings. It's either brand or trusted reputation. Amazon as a brand has
failed and I wouldn't support their private label any more than the rest of the enterprise.
Well, duh! (Score:2)
Anyone who didn't see this coming wasn't paying attention. Amazon started out selling it's own products. When you went to amazon.com, every product you were buying was being sold by Amazon. They were a merchant. When they started opening up their site to third-party vendors, they didn't stop being a merchant. Any other merchants should've, if they had two brain cells to rub together, been very leery of becoming dependent on a "marketplace" run by their biggest competitor, especially in an environment where
Be a platform, or a platform user, not both... (Score:2)
Ummm! Unethical?! (Score:1)
How can you, my fellow citizen of Earth, allow such huge powerful corporations to continue their harmful practices?