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When Amazon wants to devour a startup or kill a rival, it sets up team to do it. They spy on the company, locate its suppliers, copy its products, suspend its sales.
It’s a shakedown, and systematic. That’s the big takeaway from @DanaMattioli’s latest: https://www.wsj.com/articles/amazon-competition-shopify-wayfair-allbirds-antitrust-11608235127
It’s a shakedown, and systematic. That’s the big takeaway from @DanaMattioli’s latest: https://www.wsj.com/articles/amazon-competition-shopify-wayfair-allbirds-antitrust-11608235127
"This year, Amazon has zeroed in on Shopify Inc., a fast-growing Canadian company that helps small merchants create online shops. Amazon has established a secret team, “Project Santos,” to replicate parts of Shopify’s business model, said people familiar with the project."
"Amazon set its sights on Allbirds Inc., the maker of popular shoes using natural materials, and last year launched a shoe called Galen that looks nearly identical to Allbirds’ bestseller—without the environmentally friendly materials and selling for less than half the price."
"In 2011, Amazon began launching its own versions of six of Pirate Trading’s top-selling tripods under its AmazonBasics label...Amazon suspended Pirate Trading camera tripod models that competed with the AmazonBasics versions repeatedly."
When Amazon suspends a seller’s account, it often requires the seller to provide info on who manufactures their product. "Several sellers told the Journal they provided those details...only for Amazon to introduce its own version of their products using the same manufacturer."
Earlier this year, Amazon created a top-secret task force dedicated to taking down Shopify, whose pricing shows that Amazon has monopoly power…..
… Amazon “on average collects 30% of each sale on its platform from outside vendors, up from 19% five years ago, according to the Institute for Local Self-Reliance. Shopify collects 2.9% plus 30 cents a transaction."
The Wall Street Journal has done stellar work on Amazon this year. This is another piece not to miss. https://www.wsj.com/articles/amazon-competition-shopify-wayfair-allbirds-antitrust-11608235127
