> There is something extremely simple Amazon could do about [counterfeit products]. If you have a registered brand in the Brand Registry and don’t sell the product wholesale – there could be one box to check for that. And anyone else would have to get approval or high vetting to sell the product, especially if they are sending large quantities to FBA. I imagine there are some algorithmic solutions that could catch most of it too… Why Amazon doesn’t do this is mind-blowing
Because producers would immediately check any box that needs to be checked in order to become the single supplier of their brand on Amazon. It's immensely valuable to control all sales on the largest online store in the world, while at the same time maintaining a discriminatory pricing structure on various markets without being undercut online by your own distributors.
Amazon would effectively let brand owners gouge their customers and reduce Amazon overall competitivity and appeal.
Because producers would immediately check any box that needs to be checked in order to become the single supplier of their brand on Amazon. It's immensely valuable to control all sales on the largest online store in the world, while at the same time maintaining a discriminatory pricing structure on various markets without being undercut online by your own distributors.
Amazon would effectively let brand owners gouge their customers and reduce Amazon overall competitivity and appeal.