The difference is that Safeway does not have any other sellers on their shelves. Safeway buys inventory at wholesale and sells it at retail. Everything that is sold in Safeway was intentionally selected by Safeway to be there.
If you see a product on a Safeway shelf, the company that makes that product already got paid--by Safeway. If Safeway puts a generic ibuprofen bottle next to a bottle of Advil, that's fine with Advil because Advil already got paid! Safeway is assuming the risk that those bottles of Advil might not sell because everyone buys the generic.
Amazon is different--they sell things themselves, but they also offer to run a logistics platform for other folks selling things. Folks who use this platform believe (are led to believe) that they are going to direct to consumers, NOT selling wholesale to Amazon. Amazon purports to be a neutral infrastructure provider, like UPS or Verizon.
Now, you can say that these folks are naive for believing Amazon about their neutrality, but it is what Amazon said! Many of these companies would never have used Amazon for logistics in the first place if Amazon had said "we are going to use all your data to copy your products and go direct-to-consumer ourselves with our copies, including placing them above yours in search results." Who would take that deal?
I don't see as big of a distinction between Safeway and Amazon. The demand for pain medication is relatively constant, so if sales of Safeway's generic ibuprofen increase it will come at the expense of Advil because Safeway will start buying fewer units. The harm is one step removed but is still there.
I think a better argument would be the scale of the data collected by Amazon vs physical stores. But on the other hand, Safeway has an online store where they can collect the same information and if they are anything like Walmart then they also already have startlingly detailed insight into the supply chains and logistics of their suppliers that surely rivals what Amazon sees if you use their warehousing service.
I don't think it makes sense to draw a clear distinction between Amazon generics and Safeway/Walmart generics. It seems like a fuzzy line at best.
Maybe. One distinction I want to argue is placement: Amazon always places the Amazon Choice options at the top of the search and product listings. They also always include them in the "Popular, Editor's Picks, Highest Rated, etc." box that appears in the middle of most pages on the site. This would be like you walking into Safeway for a bag of sugar, and as soon as you turn down the aisle, there's an employee telling you everyone buys the Safeway brand Sugar or an advertisement with three boxes showing Safeway's as the Most Popular option, and two others next to it.
Where this gets real distinct is in delivery: Amazon is currently purging its warehouses of stock from thousands of vendors so it can keep stock of Amazon-brand and big box brand alternatives to those same products. (See: https://www.bloomberg.com/news/articles/2019-05-28/amazon-is...) So, the Safeway equivalent of this would be you going down the sugar aisle and finding exactly 1 or 2 bags of competing brands with a note that says, "Hurry! Almost out!", and each bag has 10lb. anchor attached to it. But there's 100 bags of Safeway sugar, and there's a line of employees offering to carry it through the store for you do you don't hurt your terribly sore shoulders...
How would you feel if a Safeway associate slapped a tracking device on you when you walked in the door, and then didn't tell you they were recording everything you thought while you were working your way through the store? That's how Amazon.com works. Oh, and if Safeway could just look at your other recent thoughts and know you fapped about 20 minutes before you walked in the door? That's also Amazon.
Another issue. At Safeway, Heinz ketchup is the real deal. No duplicates.
Amazon, on the other hand, has allowed duplicates, cheap reproductions and false reviews to proliferate. Now the only way you are assured a product is what it says is if it is an amazon brand.
That's actually not true at all the shelf space at grocery store are often paid for by the name brands. "Slotting fees" etc. Often if the product doesn't sell Safeway returns it to get the money back.
> If you see a product on a Safeway shelf, the company that makes that product already got paid--by Safeway.
This is not necessarily true. It's typical to not be paid for anywhere between 30 and 90 days. Additionally, some deals are more complex and depend on actual purchase volume.
If you see a product on a Safeway shelf, the company that makes that product already got paid--by Safeway. If Safeway puts a generic ibuprofen bottle next to a bottle of Advil, that's fine with Advil because Advil already got paid! Safeway is assuming the risk that those bottles of Advil might not sell because everyone buys the generic.
Amazon is different--they sell things themselves, but they also offer to run a logistics platform for other folks selling things. Folks who use this platform believe (are led to believe) that they are going to direct to consumers, NOT selling wholesale to Amazon. Amazon purports to be a neutral infrastructure provider, like UPS or Verizon.
Now, you can say that these folks are naive for believing Amazon about their neutrality, but it is what Amazon said! Many of these companies would never have used Amazon for logistics in the first place if Amazon had said "we are going to use all your data to copy your products and go direct-to-consumer ourselves with our copies, including placing them above yours in search results." Who would take that deal?