Amazon has been accused on numerous occasions for using the data of other sellers to launch its own products. Since the American marketplace launched its line in 2009 Amazon Basicwith which he wanted to respond to the needs of consumers.
Amazon Basic could now be on the verge of disappearing due to the different demands that US and European regulators are trying to put on the company, because they argue that Amazon is carrying out antitrust practices.
What exactly is Amazon Basic?
10 years ago Amazon wanted to launch a range of basic products, especially focused on the technology sector. As defined by the company, they are products «very well valued at very low prices«
the key of Amazon Basics is that they are everyday products, such as telephone cables, laptop sleeves or screen protectors. Consumers in most of these products do not have a preferred brand and usually several, guided above all by price. In addition, the products in this range have a very similar aesthetic and have a distinctive that identifies them.
These products are not produced by the company. Amazon has a number of trusted factories that produce good quality items at affordable prices. The marketplace just puts its logo on them.
Amazon Executives Debate Eliminating Amazon Basic
The good results of Amazon’s Prime Day have been clouded by news that no one expected. The main leaders of Jeff Bezos’s company have discussed internally to completely abandon their private label business, as explained in the medium. vox. The Wall Street Journal a few days ago supported this information when it spoke about the cuts that Amazon was making in its private brands.
Some of the workers who have spoken on the subject are its current global retail CEO, Doug Herrington, and his legal advisor, David Zapolsky, who believe that if this decision can avoid fines, it may be a good strategy.
The main complaint from the regulars is that the company uses the data of other vendors to develop the products. In addition, Amazon has the advantage of being able to better position its products than those of its competition.
However, Amazon has always said that its private brands represent a very low percentage of the total product sales of its online store. But they are still a relevant source of profit for your business.
One of the measures they have decided to implement to calm the regulators is the introduction of two Buy Box for “give more visibility to product listings from different sellers when they sell the same item at different prices or delivery speeds«, as explained in vox.
The European Commission will meditate until September whether to accept Amazon’s concessions or press for changes or additions to the proposal. Although, for now there is no indication that the EU wants the marketplace to stop one hundred percent the sale of its private labels.