Amazon's Seductive Pitch to Retailersby@linakhantakesamazon

Amazon's Seductive Pitch to Retailers

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Online marketplace services provide businesses with a unique solution for selling to U.S. shoppers without the need to run their own online stores. The primary appeal lies in the vast customer base these platforms offer, as seen with Amazon, Walmart, and eBay, making them an integral part of the retail industry distinct from other online commerce channels.
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FTC v. Amazon Court Filing, retrieved on Sep 26, 2023, is part of HackerNoon’s Legal PDF Series. You can jump to any part in this filing here. This is part 21 of 80.

a. Online marketplace services offer sellers a unique set of features

188. Online marketplace services encompass a suite of services that facilitate sellers making online sales to U.S. shoppers without having to directly operate an online store. The sellers who typically purchase online marketplace services are businesses seeking to sell goods directly to U.S. shoppers by relying on the marketplace to attract shoppers rather than attracting shoppers solely on their own. These sellers use online marketplace services so that U.S. shoppers can find and buy the sellers’ offered items.

189. Access to a large customer base is the most important characteristic of an online marketplace. Amazon advertises to prospective sellers that its marketplace allows them “to reach the hundreds of millions of customers who visit Amazon to shop,” which can “[r]educe the time, effort, and money [they] spend on customer acquisition.” Similarly, Walmart advertises that its marketplace gives sellers access to “a built-in audience of frequent shoppers and loyal customers” and tells sellers that “[y]ou bring great products. We bring millions of customers.” eBay tells sellers that “millions of buyers are waiting.”

190. Industry participants recognize online marketplace services as a distinct retail product. Many industry observers track online marketplaces separately from other types of online commerce.

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