A report summarizing Amazon's 'how to drive out rivals and dominate the market' is released
In recent years, Amazon, which operates the world's largest EC site,
How Amazon Wins: By Steamrolling Rivals and Partners --WSJ
https://www.wsj.com/articles/amazon-competition-shopify-wayfair-allbirds-antitrust-11608235127
Go read this Wall Street Journal report on Amazon's obsession with cloning and crushing its rivals --The Verge
https://www.theverge.com/2020/12/22/22195719/amazon-antitrust-wsj-investigation-competition-marketplace-sellers
A report published by The Wall Street Journal summarizes Amazon's fierce market competition and various strategies to dispel competitors. CEO Jeff Bezos encourages employees to 'consider Amazon as a startup' even after Amazon has become the world's largest e-commerce site, leveraging its great monopoly to eliminate competitors That is.
Amazon is known not only for providing a mail-order platform, but also for developing and selling its own brand products. In recent years, it has been pointed out that 'Amazon displays its own brand products in a more prominent position than other companies' products', and it is also reported that the search algorithm was changed to promote sales of its own products. ..
In addition, Amazon sells products on the Amazon marketplace , but Amazon used the third-party sales data through the marketplace to develop its own products . Bezos CEO also about their policy of 'third-party sales data do not have access to the' 'can not be guaranteed that there is no that you have violated this policy' has been told , the 'Market Place the EU in November 2020 We are using the sales data of the retailers we sell to gain an unfair advantage in the retail market, 'he sued Amazon under antitrust law.
EU sues Amazon for antitrust violations-GIGAZINE
by William Warby
One example of Amazon's eradication of rivals is Diapers.com , which once gained popularity as an online shop for baby products. In 2009, Amazon formulated '12 steps' to overthrow Dipers.com and robbed customers by offering big discounts such as diapers on Amazon.
According to estimates by Dipers.com, Amazon was 'a deficit of $ 7 (about 800 yen) every time a box of diapers was sold' due to this discount, but it was effective enough to attract customers to Amazon. .. In addition, Amazon contacted Quidsi, which operates Diapers.com, immediately after offering the discount, and proposed an acquisition plan for the company. Quidsi decided that it couldn't win the price competition with Amazon and sold it to Amazon in 2010 for about $ 500 million.
Leonard Lodish, a director of Quidsi, said, 'What Amazon did was against the law,' and the strategy of selling diapers in the red and robbing customers against the backdrop of huge amounts of money is an antitrust law. Claims to be a violation. However, it costs tens of millions of dollars (billions of yen) and many years to sue Amazon under antitrust law, so even if the proceedings were filed, Quidsi would have gone bankrupt by the time the results came out. Stated.
Amazon has been competing not only with competing e-commerce sites, but also with various manufacturers being threatened by Amazon. For example, Amazon has focused on Ravelli, a brand that sells camera tripods, and in 2011 began selling its own brand tripods that have the same configuration and design as Ravelli tripods. In 2015, Ravelli's tripod was temporarily suspended on Amazon as 'there is a problem with reliability', and at the time of writing the article, Ravelli's sales are said to have dropped significantly from the peak.
According to the Wall Street Journal, Amazon labels competitors' products sold on the marketplace as 'counterfeit' and provides 'detailed manufacturer information' in the name of authenticating the seller's account. It seems that they are requesting. Based on this information, Amazon contacts the same manufacturer and makes its own products, the Wall Street Journal points out. In response, Amazon denies that it 'does not use information about third-party seller manufacturers for its own branded products.'
Allbirds, a shoe maker that uses eco-friendly materials such as wool, also claims that Amazon sells similar products. The shoes developed and sold by Amazon are similar in appearance to Allbirds shoes, but they are not environmentally friendly, and the price is less than half that of Allbirds shoes. An Amazon spokeswoman told The Wall Street Journal that Amazon shoes did not violate the Allbirds design, saying, 'It is common practice in the retail industry to offer products that are influenced by trends that are responsive to customers. '.
While many companies have been hit by Amazon's strategy, some have won the competition with Amazon. For example, in 2016 Amazon created a team to analyze the business of Wayfair , an online site that sells furniture and household items, identified Wayfair suppliers and strengthened furniture sales on Amazon. However, Wayfair has continued to expand its market share and has been in the black even in the latest quarterly financial results.
Shopify , an online shopping platform, is also becoming a strong competitor to Amazon. Shopify is a company that provides distributors with an online shopping platform, rather than delivering products directly to end users. Shopify's model, which creates diversity from various distributors, is said to be the 'key to overthrowing Amazon,' and on Black Friday in 2020, total sales will exceed $ 5 billion (about 520 billion yen), and it will surpass the Amazon marketplace. It exceeded.
It is pointed out that it is a diverse 'true platform' that beats the strongest predator Amazon-GIGAZINE
The Wall Street Journal reports that Amazon has set up a secret team 'Project Santos' to duplicate Shopify's business model, and Amazon is expected to continue to fight fiercely with competitors in the future. I will.
Related Posts:
in Web Service, Posted by log1h_ik