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Amazon scooped up data from its own sellers to launch competing products (wsj.com)

1350 points by benryon · 2358 days ago · 692 comments on HN

Article summary

The article discusses Amazon's practice of using data from its own sellers to launch competing products. This practice has been going on for a while and is seen as a common strategy in the retail industry. Some commenters argue that this is a form of unfair competition, while others see it as a normal part of business. Amazon's scale and dominance in the market make this practice particularly noteworthy.

Main themes

  • Unfair competition
  • Market dominance
  • Intellectual property
  • Retail industry practices
  • Business ethics
  • Market research and competition

What commenters say

  • Amazon's use of seller data to launch competing products is a long-standing and well-known practice.
  • This practice is seen as unfair and potentially illegal by some, as it involves copying successful products and selling them at a lower margin.
  • Others argue that this is a normal part of business and that many companies, including retail stores, engage in similar practices.
  • Some commenters believe that Amazon's dominance in the market and its ability to leverage its position to abuse suppliers make this practice particularly problematic.
  • The use of data from sellers to launch competing products raises questions about the balance of power between Amazon and its sellers, as well as the potential for unfair competition.
  • Some argue that this practice is no different from other forms of market research and competition, and that companies should be free to use data to inform their business decisions.
  • Others argue that Amazon's practice of copying successful products and selling them at a lower margin is a form of intellectual property theft, and that it undermines the ability of smaller companies to compete.
  • The issue of Amazon's use of seller data to launch competing products is complex and multifaceted, and opinions on the matter vary widely.