Friday, October 9, 2020

Problems in the Marketplace

  I love Amazon Basics. From Ars Technica:

Multiple deep-diving investigations in recent years have found unsafe, mislabeled, counterfeit, or fraudulent goods for sale in Amazon's third-party marketplace, which is increasingly compared to an unsupervised flea market.

The Wall Street Journal in 2019 found that not only is some of the junk for sale in the Marketplace trash in a very literal sense but also that listings for unsafe items persist even after those goods are recalled or banned from the site.

About 60 percent of Amazon's retail sales take place through the third-party marketplace, with millions of vendors placing tens of millions of listings. At that scale, it can undoubtedly be difficult to keep up, and perhaps some errors are expected.

Amazon's own sales, however—the other 40 percent of its retail empire—increasingly rely on and promote Amazon's hundreds of private-label brands. AmazonBasics is one of the most successful of those brands. It sells the kind of product lines you'd expect to find store brands of in a Target, Walmart, or other big-box store: home goods, bed and bath products, kitchen accessories, luggage, lightbulbs, charging cables, and so on.

You might think that bringing all of those products and brands in-house and listing, selling, and shipping them as a first-party merchant would allow Amazon to exercise much tighter quality control over those goods than it does in the Marketplace. According to a new CNN report, however, you'd be wrong. (Read more.)


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