Imagine this scenario in Amazon's vast e-commerce ecosystem: after painstakingly building a best-selling product, an Amazon private label suddenly hijacks the buy box, causing traffic to plummet and months of effort to go to waste. This "referee-turned-player" dynamic has long frustrated third-party sellers. Now, under mounting pressure, Amazon appears poised to introduce a "second buy box" – but will this prove to be genuine relief or another empty promise?
Amazon's Privileged Position: The Tip of the Iceberg
For years, Amazon's dual role as both marketplace operator and competitor has granted its private label business significant advantages. Third-party sellers frequently encounter unfair treatment, such as having their product listings – successful in one marketplace – copied by Amazon's private label in another region, resulting in immediate loss of the buy box. This practice may stem from Amazon's logistics settings that include an option to "allow Amazon to purchase my inventory." More troubling, Amazon's private label sometimes replicates ASINs from other marketplaces to compete directly against sellers, effectively appropriating their hard work.
Self-Defense Against Private Label Competition
Sellers aren't entirely powerless against Amazon's private label competition. One strategy involves listing the same ASIN while using FBA (Fulfillment by Amazon) to ship inventory to Amazon's warehouses, which can sometimes pressure Amazon to withdraw its competing offer. Additionally, when synchronizing product listings across marketplaces, sellers should carefully review and disable logistics settings in regions like Japan and the U.S. to prevent Amazon from replicating ASINs from other marketplaces.
VC Account Abuse: Brand Hijacking and Traffic Theft
If private label competition is frustrating, Vendor Central (VC) account misconduct is even more egregious. VC accounts possess the "privilege" to list any product and can even alter brand information. Some unscrupulous VC entities exploit this capability, shipping products directly to Amazon's FBA warehouses without purchasing inventory from the original sellers. Cases of private label competition, brand hijacking, and Best Seller rank theft have become disturbingly common, disrupting market fairness and harming third-party sellers.
The Risks of Market Dominance
Amazon's overwhelming dominance in global e-commerce raises significant antitrust concerns. With a 38% market share – far ahead of Walmart's 6% – Amazon's position creates fertile ground for monopolistic practices. The company's approach to commercial competition has drawn increasing scrutiny from antitrust regulators worldwide.
EU Antitrust Settlement: Birth of the Second Buy Box
Recent reports indicate Amazon has reached a settlement with EU antitrust regulators, with formal agreement details now public. The European Commission stated Amazon has committed to changing certain practices, including ceasing the use of independent sellers' non-public data for its retail operations or private label products. Additionally, Amazon agreed to display a second buy box when another offer provides better pricing or delivery terms than the first option, while allowing Prime sellers to freely choose their logistics providers.
EU competition officials believe these changes will create more opportunities for independent retailers, carriers, and European consumers. Amazon's decision to settle likely stems from the potential alternative: fines up to 10% of global annual revenue. Based on Amazon's 2021 revenue of $469.81 billion, such penalties could have reached $47 billion.
A New Dawn for Sellers?
While implementation details remain unclear, Amazon's willingness to settle suggests the second buy box could benefit third-party sellers. This development might level the competitive playing field, giving independent sellers better visibility and sales opportunities. The e-commerce community awaits signs that Amazon's ecosystem will evolve toward greater fairness and seller support.
The Path Forward: Operational Excellence
Even with potential improvements from the second buy box, third-party sellers must remain vigilant. In Amazon's fiercely competitive marketplace, operational excellence remains critical. Sellers should continuously optimize product listings, enhance quality, deliver exceptional customer service, and leverage marketing tools to strengthen brand recognition and product competitiveness. Only through relentless improvement can sellers thrive in Amazon's ecosystem.
Navigating Policy Changes
Amazon's policy adjustments significantly impact third-party sellers. Staying informed about platform changes and adapting strategies accordingly is essential. For instance, modifications to FBA fees require sellers to reassess logistics costs and implement measures to maintain profitability. Only by keeping pace with platform evolution can sellers identify opportunities for sustainable growth.
Diversification as Risk Management
Overreliance on any single platform carries inherent risks. Third-party sellers should consider diversifying across multiple sales channels, including other marketplaces like eBay or Walmart, or establishing independent storefronts. A multi-channel approach reduces dependence on any one platform while enhancing business stability and resilience.
Amazon's second buy box offers hope for fairer competition, but sellers must continue honing their competitive edge while adapting to an ever-changing marketplace. The e-commerce giant's commitment to implementing these changes will ultimately determine whether this development marks genuine progress toward a more equitable ecosystem.