Quote:
Originally Posted by The Reverend
I think the main issue between Amazon vs. Walmart is that Walmart was the first to actually create a monopsony.
Walmart basically told their suppliers that they will not sell their product unless they priced it as low as possible. Hence why Walmart can offer such low prices. I don't believe Amazon can do this as they are not the sole buyer of anything and have considerable competition, at least in the US.
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Amazon does this to vendors as well. They aren't the sole buyer of items but they drive so much business you can't just ignore them. You can however give Amazon your products and sell via their marketplace and pay them a fee per sale (and for the warehouse space) if you want to avoid it but you still have to price competively or lose the buy box which basically crushes your sales.
Then of course you have to pay for ads to show up at the top of their search or lose that to your competitor.