In a recent article, the Wall Street Journal outlines how e-commerce giant Amazon gains an advantage over smaller competitors, “steamrolling” their business with similar products and services on its massive platform.
In an article titled “How Amazon Wins: By Steamrolling Rivals and Partners,” the Wall Street Journal outlines how the e-commerce giant Amazon uses its vast influence to push out competitors and rivals. The company often does this by targeting items that are selling well and creating their own version of the product, selling it at a cheaper price and undercutting the original manufacturer.
The Wall Street Journal writes:
No competitor is too small to draw Amazon’s sights. It cloned a line of camera tripods that a small outside company sold on Amazon’s site, hurting the vendor’s sales so badly it is now a fraction of its original size, the little firm’s owner said. Amazon said it didn’t violate the company’s intellectual-property rights.
When Amazon decided to compete with furniture retailer Wayfair Inc., Mr. Bezos’s deputies created what they called the Wayfair Parity Team, which studied how Wayfair procured, sold and delivered bulky furniture, eventually replicating a majority of its offerings, said people who worked on the team. Amazon and Wayfair declined to comment on the matter.
Amazon set its sights on Allbirds Inc., the maker of popular shoes using natural and recycled materials, and last year launched a shoe called Galen that looks nearly identical to Allbirds’ bestseller—without the environmentally friendly materials and selling for less than half the price.
Allbirds Co-CEO Joey Zwillinger commented on the situation stating: “You can’t help but look at a trillion-dollar company putting their muscle and their pockets and their machinations of their algorithms and reviewers and private-label machine all behind something that you’ve put your career against. You have this giant machine creating all these headwinds for us.”
As multiple tech companies such as Facebook and Google face antitrust lawsuits, Amazon pushing out competitors could see the company in the sights of the Justice Department next.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan or contact via secure email at the address lucasnolan@protonmail.com
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