
German cartel office investigates Amazon’s treatment of small sellers - howard941
https://www.handelsblatt.com/today/companies/antitrust-german-cartel-office-investigates-amazons-treatment-of-small-sellers/23701670.html?ticket=ST-6205428-k5gUAoSGgp5JpMDs2mkz-ap1
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Sylos
They should also investigate Amazon's treatment of their suppliers. I've
worked in two supplier companies that would have preferred to not sell to
Amazon, but essentially had no other choice.

In both of them, when sending something off to Amazon, we first of all got to
rip off the bulk packaging, then individually packed each item in their oh-so-
eco-friendly packaging (which I suppose still makes sense as they're
individually sending those items out to customers), but then if it arrived at
Amazon's warehouse and anything is wrong with that truck load, like a splinter
from the pallet damaging one or two packages, then they would usually pack
everything back onto the truck and send it back to us. Then we got to rip off
their eco-friendly packaging to check each item, pack it again and send it off
to Amazon again. The costs for sending the whole truck load back and forth, we
as supplier got to pay.

To try to avoid this, we also specifically threw away pallets that would have
even the slightest chance of splintering, or used them for other companies
that we supplied to. So, in effect we got to put the Amazon deliveries in
their eco-friendly packaging onto the shiniest dead trees that you'll ever
see.

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jimnotgym
I have been saying for some time that Amazon can't be allowed to operate the
marketplace and be a vendor. They could have protected themselves with a
'Chinese Wall' between the departments, but chose to abuse the position.

Tip, if you are selling something through Amazon, make sure it is branded. At
least you may get Trademark protection.

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yohann305
Could someone explain how is this different than a supermarket selling their
own products, for example Walmart selling Colgate toothpaste and their own
‘equate’ brand?

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cavanasm
A third party company selling products to be sold in supermarkets is basically
selling to the supermarket, not to the consumers (if the supermarket stocks
their product and it doesn't sell, the supermarket won't keep putting it on
the shelf). On Amazon, companies are selling to consumers and Amazon
facilitates that process. If Amazon makes it harder for sellers of particular
products that Amazon also sells, they can effectively force those sellers out
of business. That being said, I'd be kind of surprised if Amazon really needed
to sell at a loss for products Amazon is selling directly since Amazon has a
massive advantage in scale.

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bingoismynamo
I’ve had experience as a larger seller. I think some of these tactics come
down to corporate ladder climbing.

Being in a category Amazon has tried to infiltrate, we’ve heard the “either
join us or...” The head of the project does everything they can to attract
leaders in the space to share their knowledge on how we’ve made it work for so
long. Then if that seller doesn’t jump on board, it’s a well you’ll be sorry
in the end. If their product doesn’t start to compete within the first few
months, that is when you see desperation sink in from the lead of the project.

That’s when you’ll start seeing Amazon brands taking over the front page, when
they haven’t done the ground work to get there. Then you’ll see more Amazon
brands showing up on the front page, with the help of product pages and ads
that break their own terms of service. Then sellers may start seeing more
frequent issues with their product in that category. And then if you’re really
unlucky, Amazon vendor will say either bring your product to vendor or don’t
sell on the platform at all.

I get it’s their playground, and it’s their rules, but sometimes you just end
up throwing up your hands and asking if it’s all really worth it

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k__
"bring your product to vendor or don’t sell on the platform at all"

what does this mean?

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ssvss
I think it means, you have to bring your product to VendorCentral from the
SellerCentral/MarketPlace,

VendorCentral is where you become a Vendor/Distributor to Amazon, i.e, Amazon
should be allowed to purchase at wholesale price from you, and sell it
themselves.

and MarketPlace/SellerCentral is where you can sell directly to customers.

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k__
Ah, didn't know Amazon would buy things too.

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chrisseaton
Who are they saying Amazon is in a cartel with?

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Sylos
The German cartel office also investigates general abuse of dominant market
positions, including monopolies (where one could say that the market doesn't
exist anymore).

This double-role of the cartel office makes sense, because the whole point of
a cartel is for a group of companies to be able to interact with the market
like when they would hold a dominant market position.

There's also the step in between, which are official fusions or buyouts of big
companies, which's only difference compared to a cartel is that they're
officially talking to one another, not inofficially, but which would lead to
one single company holding the dominant market position, at which point you
would normally not count that to "cartels" at all anymore.

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point78
US needs to follow with a class action

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zavi
Can't make your own tech sector? Steal from the FAANG!

