Thursday, March 11, 2021

Brands such as AmazonBasics, Pinzon, etc., act as a layer hiding the actual manufacturer from the buyer, allowing Amazon covertly to replace the manufacturer anytime

I strongly think that this is one of the most powerful things currently going on in the business world - Amazon's own brands such as AmazonBasics, Pinzon, and others [variously termed store brands, shop brands, white-label products, private label brands, etc.].

Idea originally started 6-Aug-18. Continuing today 11-Mar-21.


See AmazonBasics AAA alkaline cells pack below.



For the consumer, it's a product by AmazonBasics / Amazon. It isn't a product by "FDK Indonesia". The entire buying and post-buying experience is handled by Amazon. Amazon sells the product, collects the sale data and user interactions, Amazon decides what packagings sell more than others, and so on. FDK Indonesia might be happy to be associated with Amazon - what it doesn't realize is that it's an expendable asset, a transparently replaceably asset for Amazon. Anytime another, better supplier becomes available, Amazon will simply switch to that one, leaving FDK Indonesia in ruins, especially if over time it becomes overly dependent on Amazon's orders. Tomorrow some Chinese battery seller offers Amazon cheaper + better AAA alkaline cells, and cruel Amazon will switch in a heartbeat.

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