![]() ![]() ![]() California asked Amazon about whether it uses data on third-party sellers to inform its private label strategy, according to The Wall Street Journal. Those advantages are drawing scrutiny from regulators in two states. Amazon also owns an increasingly large share of distribution for third-party retailers by offering logistics and delivery services. Amazon captures 38.7% of online retail sales in the U.S., according to the latest data from eMarketer, and knows how often customers search for specific items and how well products are selling. The difference is the powerful technology that allows Amazon to supercharge insights about shoppers and sellers. It's the same tactic deployed by big box stores and the reason you'll see Kroger-branded tissue sold for $1 less than the Kleenex brand on the shelf next to it. ![]() How did Amazon get here? By doing the same thing retailers have done for decades - with a big technology boost.Īmazon has been developing its own private label products for years, most visibly under the AmazonBasics name, and marketing them alongside products from third-party sellers. The latest inquiries build on other investigations into Amazon's business practices, signaling that the company may have grown too powerful to escape regulatory oversight. Regulators in California, Washington state, and Europe are reportedly homing in on Amazon amid reports that the company uses its colossal size to compete directly with other retailers on. Antitrust scrutiny of Amazon is intensifying as new details reveal how the company treats third-party sellers in its marketplace. ![]()
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