October 8, 2020 | technology | No Comments
This week, the US House Judiciary antitrust subcommittee published its final report as part of a 15-month inquiry into antitrust concerns in Big Tech – Amazon being one of the four companies under investigation.
Many brands who have 1st party (“1P”) relationships with Amazon are currently entering their Annual Vendor Negotiations right now. This process is high stakes as it dictates the profit margins, available product assortment, and marketing budget for the upcoming year. Similarly, third party sellers – referred to as ‘partners’ in Amazon marketing materials but as ‘competitors’ behind closed doors – experience their own challenges.
The report from the Subcommittee vindicates many brands who have felt a power imbalance at play in their relationship with the retail giant. Congress has spoken: you’re not alone, and this is not fair. Here are some of the themes from Tuesday’s report that are relevant to brands that sell products on