Amazon is getting on the edge during the hearing.
Amazon Marketplace is facing some challenges after they got the attention of the tech companies regarding Amazon’s antitrust hearing.
During the hearing, Rep. Lucy McBath (D-GA) introduced as a third-party textbook seller on Amazon, who believed the company had blocked their store as it grew more successful. They weren’t able to sell a book for ten months, and despite hundreds of messages to Amazon, despite asking for the reason from the Amazon.
Amazon Marketplace’s Issue
He stated, “I’m concerned this is a pattern of behavior. What do you have to say to the small businesses that are talking to Congress because you simply aren’t listening to them?”
“I do not think that’s systematically what’s going on. Third-party sellers in the aggregate are doing extremely well on Amazon,” Bezos answered.
Amazon may have some hearing regarding the security issues, but it always comes down to their undying Marketplace. The company has been letting third-party sellers list goods on Amazon.com.
It has been reported that the Marketplace was built to copy successful products and launch competitors. For years, roughly 50% of Amazon’s sales have come from third-party sellers, but the company has been careful of covering it.
The Congress’ antitrust team got a bare image of how powerful the Marketplace can be in Amazon’s direct-sales business.
“We have a policy against using seller-specific data,” Bezos said during the conference, “but I can’t guarantee you that policy has never been violated.”
“By making itself indispensable to e-commerce, Amazon enjoys receiving business from its rivals, even as it competes with them,” antitrust scholar Lina Khan wrote.
“Moreover, Amazon gleans information from these competitors as a service provider that it may use to gain a further advantage over them as rivals—enabling it to further entrench its dominant position,” she added.
Amazon Difficult Entry
As of today, it has become more challenging and difficult to start Amazon selling. The reason for this is that the company has become stricter, that it will take down new stores or sellers if they have not followed the rules. They even became particular with what products can be sold and who can sell. Amazon has an automatic approval to sell in a few categories as soon as the sellers open their selling account.