Comment by duk3luk3
19 hours ago
No - the obvious play here is for Amazon to undercut the original vendors by 15%, sell at a loss until all of the sales go through Amazon, and then pressure the vendors into cutting their pricing and becoming suppliers subservient to and dependent on Amazon, allowing Amazon to become a middle-man dipping into the revenue stream.
But then brands could buy their own products back for cheaper and just get a real life infinite money glitch?
This actually happened to some restaurants who found their service on DoorDash. The restaurant owners were able to make a fine profit out of DoorDash’s arbitrage scheme.
Indeed! Discussed at the time: https://news.ycombinator.com/item?id=23216852
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Don’t worry. If Amazon decided to undercut by selling at a loss, they would absolutely put it in their ToS that retailers cannot exploit this loophole and they would sue to enforce their ToS.
Retailers could put into their TOS that they are exempt from those clauses when buying things bought from them.
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These manufacturers never signed any ToS, and the most Amazon could do to retaliate would be to de-list the product that they never asked to be listed in the first place.
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It looks like a good idea, this works better for refrigerators than pizza.