Amazon is killing American small businesses because it’s putting many stores out of business. Amazon can do this because it can offer lower prices and faster shipping. This makes it very difficult for small businesses to compete. Many small businesses are struggling to stay afloat; some have even gone out of business because of Amazon.
However, many times just that isn’t the only case of Amazon’s corrupt practices. Amazon does other shady things undercover as well.
Let’s find out more.
How Does Amazon Do It?
Aggressive Pricing and Business Practices
Amazon has been criticized for putting small businesses out of business with its aggressive pricing and business practices.
There are a few different ways they do this. One way is their aggressive pricing. They have been known to price their products lower than the competition, forcing small businesses to either match their prices or go out of business.
If they find you selling products at a higher price elsewhere, they'll penalize you.
Copy Products
They have been known to copy products from small businesses and then sell them at a lower price, forcing small businesses to either match their prices or go out of business.
The methods that Amazon uses to copy products will vary depending on the type of product being copied. However, some common methods that Amazon may use to copy products include reverse engineering, sourcing from suppliers, and taking inspiration from other products on the market.
Reverse engineering is a process where Amazon takes apart a product to understand how it works and then creates a similar product. This is often done with products that are complex or have many parts, such as electronics.
Sourcing from suppliers is a process where Amazon buys products from suppliers and then sells them under its own brand. This is often done with products that are less complex or have fewer parts, such as clothes or books.
Taking inspiration from other products on the market is a process where Amazon looks at other products and then creates a similar product. This is often done with popular or in-demand products, such as toys.
Third-party Sellers
One of Amazon's most common ways to steal products is by using third-party sellers. These are businesses selling products on Amazon, but they are not the ones that created the products.
This can be a problem because the businesses that created the products may not get the money they deserve. Amazon has been known to take products from these businesses and sell them as their own. This has led to a lot of businesses losing money.
Selling at a Loss
Some small business owners have accused Amazon of selling their products at a loss to drive them out of business.
Amazon has been known to sell products at a loss to drive them out of business. This is especially true for small businesses and start-ups trying to compete with Amazon. In many cases, Amazon will sell products at a loss for some time to drive the competition out of business. Once the competition is gone, Amazon can then raise prices and make a profit on the products.
Huge Discounts
Amazon has been accused of using its market power to force small businesses to sell products at a discount. This practice, known as "price gouging," is illegal in many jurisdictions. Amazon has denied these allegations, claiming that it simply offers discounts to customers who purchase in bulk.
Whether or not Amazon's practices are illegal, they are certainly harmful to small businesses. When Amazon offers discounts to customers who purchase in bulk, small businesses are forced to either match the discount or lose out on sales. This puts small businesses at a competitive disadvantage and may ultimately force them out of business.
Lack of Transparency
The company has been criticized for its lack of transparency for small businesses. Amazon does not publicly release detailed information on how its algorithms work, which makes it difficult for small businesses to optimize their listings and be successful on the platform.
This lack of transparency can be a major barrier to entry for small businesses, as they may not be able to compete with larger businesses with more resources and information about how to succeed on Amazon.
Wrapping It Up
A very few small businesses have been able to adapt and survive by selling their products on Amazon, but many have not been so lucky. Amazon is directly responsible for putting many businesses out of action.
That’s why support the local American small businesses by using USAZON. A platform made for the interests of the small businesses of America. Shop today and help us take the power back.