Amazon’s marketplace for third-party sellers can provide a major distribution boost for small retailers. But, as the Wall Street Journal outlines today, selling through the ecommerce goliath comes with a cost. Some retailers are claiming that Amazon basically uses the platform as means of figuring out what to sell and how much it should cost.
Shocker: The Internet’s very own Wal-Mart isn’t wholly a friend to the little guy. Color us dumbfounded.
For example, one small retailer started selling plush NFL mascots (adorably dubbed “Pillow Pets”) in the marketplace. They were doing a pretty good business, until Amazon started stocking them at the same price, and as a featured product.
“I tried lowering the prices, but Amazon would always match my price or go lower until I eventually gave up” competing on price, says the owner. Yeah, out-cost-cutting Amazon probably isn’t going to work. Read More