This week, Bloomberg reported that "A team of Federal Trade Commission investigators has begun interviewing small businesses that sell products on Amazon.com Inc. to determine whether the e-commerce giant is using its market power to hurt competition."
That means that the US government is investigating the power that Amazon has over third-party sellers that use its platform and the customers that buy on Amazon.
So, What Does Amazon Antitrust Investigation Mean For Third-Party Sellers?
Well, as you know, Amazon's online dominance is a HUGE benefit for third-party sellers. We get more customers, world-class logistics, and limitless data. But having complete autonomy has hindered 3rd party sellers as well. If you've been selling on Amazon for a while, you also know that Amazon makes the rules and you need to follow them or suffer the consequences (part of why it is important to work with advisors like ALGO to help make sure you follow all of Amazon's rules).
How can this antitrust investigation help 3rd party sellers?
More Fair - With oversite, Amazon wont be able to do whatever they want and will be accountable to the government (in Germany, there are laws Amazon needs t follow regarding seller suspensions).
Less Competition - If Amazon is required to be more transparent, they may compete on less listings and may also share the buy box on more of the listing they are on.
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