it is reported, amazon launched a function, in buyers competitor's product add to cart before sell their tmall brand.
in the washington post dozens of product search in, amazon brand of resembling commodity (similar item consider) "advertisements appear on buyers click add them to your shopping cart above where, and flaunts amazon self-brand products cheaper, for example glad bag with handle, dr. scholl gel insole, energizer battery and nicorette gum.
this strategy shows amazon can on sale on its website of commodity applied effect. research firm emarketer, amazon this year will account for american all e-commerce sales of 37.7%.
amazon front business development senior manager, now brand consultancy buy box experts partner james thomson said: "this is a nicely in clients buy when advertising, i don't think it's not fair "
amazon relevant personage says, product promotion and other store sales of own brand products way not much different.
amazon spokesman nell rona said: "and other retailers, we in platform promoting self-brand, for buyers to provide high quality and value for products. we also widely from sales partners products ."
amazon's massive market has become consumers buy paper towel and socks of basic commodities such as default place. analysts estimate, about half of american families now are prime members, most of their shopping turned to mobile app, desktop computer, even support alexa voice applications.
while amazon's wide range of goods, but most buyers just once or eyes and be able to decide to buy what. thomson said, about 90% buyers will choose "add to cart" or "buy now option, rather than in page below scroll to select other sellers of products. amazon has website most major space transfer to the brand and competitors of the third-party vendor advertising, last quarter advertising income of about 3 billion dollars.
meanwhile, the company has developed more than 100 tmall brand, including its popular amazon basic products, such as bra, vitamins and car floor mat and so on products. these tmall brand has occupied the site of gold location. in buyers decided to buy, this new zeng gong can make them with other brands and dealers have more immediate competition. in the washington post on this function tests, only amazon brand to use this function.
rona declined to say whether amazon are testing this function, or this function whether permanent. and, she never show that amazon for how many product launched resembling commodity promotions, and whether this includes any non-amazon brand of goods.
it is understood that amazon and those on its platform sales products the internal competition, has caused close attention. european regulators announced on amazon's competition strategy investigation, and expressing in particular, they would investigate whether the company had abused its dual role-both independent sellers market, is their products retailers.
us regulators and legislators also in wait-and-see. federal trade commission june this year responsible for investigating amazon, move that could herald the company competition strategy of investigation will further strengthened. last month, the house judiciary committee questioned amazon lawyer nate sutton, with a third party seller of conflict to he pressure on.
the buyer of a minimum price for the product, may help amazon resist unfair competition allegations, because american anti-monopoly law tended to focus on protection of consumer rights.
amazon's new strategy is, to search energizer battery buyers recommend amazonbasics battery, to search dr. scholl buyers recommended trek support of gel insoles, to search nicorette products buyers recommend basic care nicotine gum.
the washington post also found amazon provide tmall brand product substitution diapers, coffee pods, beauty products and vitamin supplements products such as example.
the function does not apply to all buyers. but, when selected buyers search "glad tall kitchen drawstring trash bags (glad kitchen drawstring bag with handle), 'they see glad products link. on monday (august 26)-selling non-advertising commodity one is glad of 100 bags bag with handle, price of 16.77 dollars, including recommended to choose amazon solimo series 80 bags bag with handle, price of 11.11 dollars.
electricity supplier management and software company kwontified founder elaine kwon said, amazon tmall brand is the main source of revenue for the company one.
"i think, they tried to make tmall brand products on the platform occupy complete market dominance is makes sense. unless regulators requirements, otherwise the company unlikely change of strategy ."
amazon has tried before to marketing itself products. earlier this year, the wall street journal, amazon in its mobile app in similar tests. amazon end of the tests drive the pop-up window, these window occupy buyers phone most of the product page, forces customers click cheap amazon products or to give up to continue to purchase. according to cnbc reported, according to cnbc reported, amazon earlier this year, dropped some private brand promotional advertising.
in addition to promoting brand products sales, the strategy appears to also makes amazon's retail business relative to on the site sales own commodity businesses with advantage. the company said, third-party sales revenue reached 160 billion dollars, its sales entity retail product gross 58% of.
but because amazon sales tmall brand, therefore, when amazon persuade consumers to buy own brand goods, rather than third-party sales of similar commodities, its advantage is greater because it.