Comment by indymike

>The concern is that Amazon may just drop smaller sellers since they would not be collectable

This is the hard part with business. If you make a product, you are responsible for it. If you sell a product, you are responsible for it. If I sell a dangerously defective used lawn mower at a garage sale, I'm responsible (yes hard to prove).

One of the dangers of too much growth is that your liability can out run your profits in a way that puts the whole business at risk. Historically, it was hard to make a new product and get it on the shelf... retailers required certification by a consumer products testing lab and would have to have indemnification AND proof of insurance where the retailer was a named beneficiary. Even though all of this is likely in the fine print at Amazon, one has to wonder if it is verified and audited.