Amazon Proctor & Gamble
I remember writing an MBA paper about Amazon to discover that they set up 2013 a fulfillment center in P&Gs warehouse. As items are rolling off of the assembly line Amazon is packing them up and shipping them out via FBA. I always wondered if P&G paid a lower rate than what I did. Sellers have to think smart. What is the main reason why 3rd party sellers are involved in the strategy? To add the inventory in their system, and create new data channels for Amazon. In a sense, the sellers are paying Amazon. It is a marvelous business plan in a sense, but unfair. Amazon knew this for quite a while and was prepared to pay any penalties they would be presented in the future. As a seller, you have to think that it is all a ticking time bomb. As soon as they source everything. Sellers will still pay to compete on a platform that is not in their favor. In all, I must say that my most dynamic e-commerce experiences occurred on Amazon US and UK. People would rather pay more there for products than pay 15 percent less on my website. Think smarter and not harder. Prices are higher than ever. Who will benefit more? You or Amazon?
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