So basically you have to manage your own inventory for Amazon, pay Amazon for fulfillment of orders of your product, pay Amazon for storage of your product, and also let Amazon control the pricing to get preference on the buy box. I can see that there may be advantages, but it seems like an awful lot of the burden is shifted to the vendor.
Edit: On second thought, if Amazon has dynamic control of the pricing it may be difficult for the vendors to accurately forecast and stay in-stock.
No but Chinese companies will be happy to spin up assembly lines making a product identical to yours and undercut your product, while Amazon slaps on the 'Basic' brand and pushes it to the top of the rankings.
They totally have relationships with multiple tier 1 manufacturers and have teams pouring over data to pick products to undercut. I hate it when people say this, but I don't know why you've been downvoted.
Yup, sellers need to look very carefully before they decide to sell with amazon. I used to sell on that platform but pulled out. At the end, I wasn't even making money on my sales after fees, shipping etc. Also amazon shoppers are overly picky about product quality and amazon just bends over backwards. That's what really nailed the coffin for me. Now I only sell on ebay and I suggest other sellers to do the same, especially if your margins on amazon are low.
Edit: On second thought, if Amazon has dynamic control of the pricing it may be difficult for the vendors to accurately forecast and stay in-stock.