Online retail is always a race to the bottom, as mostly all anyone cares about is price. When I was in the business, it was a continual hunt for new/unknown products we could sell at a decent profit before other sellers got on them and the margin got trashed.

For a niche product it seems a little odd that Amazon would make their version half the price. Then again, they may argue that theirs is a 'budget' version, and thus it doesn't compete with the original.