For Amazon Sellers, “Amazon Basics” is an ugly phrase…
Fascinating post in the Reddit ecommerce section today from an ex-Amazon seller. OK, so it’s actually a phrase not a word, but other than that you get the idea. Sell on Amazon at your (brand’s) peril:
As an ex-Amazon seller, Amazon Basics is an ugly word. It boils down to Amazon analyzing 3rd party seller data and copying the best performing products.
I have seen this happen to dozens of products and numerous friends. Amazon ONLY cares about Amazon and serving customers. The dirty tactics they take with sellers is quite troubling, and signals their future intentions. Ultimately Amazon wants to replace all 3rd party sellers/products with Amazon Basics versions. Amazon wants to (and will) own the customer, and every ounce of margin that comes with it.
This has implications both for buyers and sellers. For sellers the issues are obvious. Yet Amazon is a bit like eating fast food, tasty in the short term and terrible in the long run. Brands cannot help but want access to their hundreds of millions of customers, and thus sacrifice their future for short term success. For buyers the problem is equally bad.
Marketplaces die when the creator becomes the competitor.
Read the full post here: