It can be argued that Amazon should have some sort legal responsibility to do a miminal vetting process for things it sells on it's site. Or, in other words, should be required to make an effort to only sell legal products.
"Not our problem that someone else is using our store to sell illegal and unsafe products that we store in our wearhouses, accept payment for, and deliver" shouldn't be a valid defense.
However, Amazon is successfully arguing that they are not the vendor. The vendor is a third party using Amazon's platform.
Edit: that said, I think this needs to change.
Expanding even further next in the line would be Craigslist, with the defense hinging on argument they don't facilitate payments like etsy, amazon or ebay.
So where do we draw the line?
If it isn't "Fulfilled by Amazon", when the item is sold, the vendor ships the item directly to the customer.
Ebay on the other hand I am under no illusion that they are not the vendor. Same with Craigslist, Etsy, Tindie, etc.
It seems like this would put a total stop to inventory commingling, which does sound attractive, at an abstract level.
https://www.investopedia.com/terms/l/letter_of_guarantee.asp
There is a big difference between buying from Amazon and buying from company X, fulfilled by Amazon.
Literally the only difference is a tiny icon on the product page saying "Marketplace".
Its also to make sure, the legal system of the customer binds on the trading contract and inform/warn the customer that the item in question could be a molotow cocktail.
What is the metric for "Molotov cocktail"? Anything that has batteries with a high energy density can be extremely dangerous. Cell phones, laptops, RC cars, power banks, and anything with a lithium ion battery can catastrophically and potentially fatally fail. Sure, you could mandate that Amazon run their own battery of safety tests on every product that is sold on their site; they sure as hell could afford it. The problem is that there's just about nobody else in the market that can.
They decided that it is best to copy AliExpress, than be overwhelmed by it.