Amazon is both a retailer in the sense that they sell products, but also owns the entire marketplace as well.
Amazon is both a retailer in the sense that they sell products, but also owns the entire marketplace as well.
They are also so good at building malls that they own the construction company and the supply chain of raw goods for the construction efforts (AWS). They use their scale to cut costs for construction globally so it doesn't make economic sense for others to build without them. Even some of their competitors use their construction company to build their vision of what a mall looks like. All the while Amazon is gaining valuable insights they can steal to use on their own malls.
This isn't one off or new either but a pattern of abuse by Amazon: https://fortune.com/2016/04/20/amazon-copies-merchants/
Or from today: https://arstechnica.com/tech-policy/2021/05/4700-amazon-empl...
Just wait. It may happen.
During the pandemic some of the big mall companies bought their tenants, either out of bankruptcy, or at crazy cheap prices.
At first it looked like the malls were just doing it to keep the lights on and the storefronts occupied. Now there's more and more people saying the mall companies may try to become "Amazon In Real Life."
To me, it sounds like Department Stores 2.0. But it'll be interesting to see if it actually happens.
In this analogy, that would mean you have a store inside the mall and right across the street. Amazon sees you are selling products cheaper across the street since rent across the street is way cheaper than inside the mall. Amazon then says either you charge the same price in the mall or you get kicked out. You could call Amazon's bluff but most sellers are not risking their seller accounts.