Amazon pushes up prices across the Internet
Amazon's fee structure for third-party sellers, including mandatory referral fees and near-mandatory fulfillment and advertising costs, effectively forces sellers to raise prices across the entire internet. This practice is currently a focal point of an FTC antitrust investigation.
Why it matters
It explains how Amazon's market dominance and fee-stacking model contribute to inflation and reduced competition in the broader e-commerce landscape.
Not-Ship turns one next week!! To mark it, I'll be kicking off a campaign for new members. I won't spam you; free subscribers will only get three extra emails on top of the weekly edition.
But first, can I ask for a small birthday present? Hit reply and finish this: I read Not-Ship because...
Last week I wrote about how Amazon's search page is designed to screw you over : the top row trap, the swamp of ads, the discount-washing. Today, I'll explain what's going on behind the scenes, and how Amazon's rules make sure prices stay high not just at Amazon, but everywhere you shop.
This isn't just my theory. This system is at the heart of the US Federal Trade Commission's (FTC) upcoming antitrust case against Amazon.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in