The state of California is accusing Amazon of a price-fixing scheme that pushes wholesale vendors to raise prices at competing stores like Target, Walmart, Chewy, and Best Buy. And the state says, after the discovery process, it now has receipts to prove it. The case centers on several email exchanges between Amazon vendor managers and brands like Levi’s, GlobalOne, Hanes, and Scotts Miracle-Gro.
Business Insider obtained the full case file and reviewed hundreds of pages of documents and over a dozen email exchanges to investigate if Amazon uses its influence as the largest e-commerce company in the United States to compel vendors to raise prices at competing retailers. We also spoke with several third-party sellers, like the inventors of the Bed Scrunchie, who say they, too, are pressured by Amazon to raise prices at other retailers.
So, has Amazon become too big and powerful? And is it possible the company is using its power to drive up prices everywhere?
Also read “This entrepreneur says Amazon nearly destroyed his business. He still shops on it every week. ‘It’s crazy'”: https://bit.ly/4hWN6ju
00:00 – Introduction/The Levi’s Emails
02:00 – Limiting Competition
03:22 – Anti-Discounting AI Algorithms
04:14 – California’s Price Fixing Lawsuit
05:09 – The GlobalOne/Chewy Emails
07:07 – The Ice Cream Maker Emails
07:56 – Amazon’s Response
09:06 – Seller Complaints
12:20 – Amazon’s Seller Fees
14:49 – Amazon’s Power and Influence
16:37 – The Future
17:41 – Credits
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#amazon #retailers #sellers #commerce #soexpensive
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Also read “I was sick of never seeing my 6 kids. So I quit my Amazon job to become a tulip farmer.”: https://bit.ly/464xg0w
And “The internet is having a field day with Amazon’s ‘About You’ customer dossiers. Here’s how to see yours”: https://bit.ly/4BejCq6
“Amazon employees hit by fresh job cuts across several teams”: https://bit.ly/4s1h3n1
Don’t believe this it private equity frims doing the high prices
I stopped using amazon years ago
I like the idea (as a small business selling online, including Amazon), but we all know this is just happening because someone at Amazon didn’t bribe California enough.
If Amazon wanted to dictate the market then why did they buy : Whole Foods?!.
Amazon reinvented logistics and cut out the nonsense of “delays” and items being out of stock.
These other companies need to step
Up there game and stop looking to Amazon as a cop out.
Great vid.
That’s why I always check if a non-branded product is available on Temu beforehand. If it is, it’s always a lot cheaper.
You people are slow i love Amazon. Its an international business it benefits me well on my little island
It is absolutely the same in Russia. We have 3 big marketplaces called ozon, wildberries and lamoda. They can do with their suppliers which called sellers whatever they want. For some categories of goods for each sale they request up to 40-50% of money seller got. The same time they have a lot of fines, steals by the customers, damages which also paid by seller most of the time. Of course, all the services like acceptance in marketplace warehouse, payment acceptance from the customer, returns of the goods, delivery also paid by seller. In fact the true margin is really small and you have to sell a lot to get the same money if you will have your own website or the app.
They have this power because of the service they provide to the customer. But before it was with the best price but now it is not. And all customer pay the medium or higher price, seller get minimum money and main part kf profit goes to marketplaces.
I’m pretty sure that one time market will kill them, it is impossible to work like this for a long time
Nice information of amazon business practices ❤❤
0:17 and when Amazon sees this…your product will be gone anyway 😂
0:27 it’s always california doing the lord’s work… for the rest of the us
I don’t buy from amazon at all. Because Amazon wants retailers to go bankrupt. So they will set the new prices. Once only Amazon remains. It’s a monopoly but government has gotten involved yet. I wonder when they will step in. Maybe they are blind.
Sounds like the market is ripe for another retialer to come along and not talk to Amazon.
Just stop buying all the crap. No one needs a bed scrunchie. All this buying is so harmful to the environment.
If all the suppliers stopped selling on Amazon The system will correct itself. The problem is not only Amazon is also suppliers that they want to make more money and more money.