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Ina Steiner

EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com

Sun Feb 26 2012 18:00:13

Amazon Corners Market on Gillette Products

By: Ina Steiner

Sponsored Link

When EcommerceBytes learned that third-party sellers weren't allowed to list Gillette products on Amazon's marketplace, we did some digging to see which entity was behind the policy - Amazon.com or the brand-owner Proctor & Gamble.

In Monday's Newsflash newsletter, EcommerceBytes clears up part of the mystery, but there are many unanswered questions. However, one thing is certain, the ban makes retailers who are concerned about having to compete with Amazon even more nervous. The ability to access sellers' proprietary supplier and sales information gives Amazon competitive intelligence it could use to its own benefit, many fear.

Another area where Amazon has a competitive advantage over 3P sellers is with its Certified Frustration-Free Packaging program. Amazon works with manufacturers to create product packaging that are easy to open and good for the environment.

Amazon "owns" the listings for products with Certified Frustration-Free Packaging, though the company does offer a "retail" option in listings - if you click on Retail, you'll find third-party sellers - see this listing for this Case Logic Ultra compact camera case, for example.

Capitalizing on retailers' concerns about marketplace selling, eBay has been sending a message for the past 3 years that it wants to work with retailers, not compete with them, but it is aiming that message at large brands and chain stores. Small and medium-sized eBay merchants sell in an environment where they fear they could be shut down by big brands through the eBay VeRO program, and they must compete with the favoritism eBay gives large brands and retailers.

Amazon was mum over the reason for its third-party ban on Gillette (and Oral B) products - let us know if you've seen other instances where sellers have been banned from selling brands and where the marketplace has the exclusive.

Comments (9) | Leave Comment | Permalink

Readers Comments

Amazon Corners Market on Gillette Products

by: jpv1234me This user has validated their user name.

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Sun Feb 26 23:10:13 2012

I like more Schick Quattro razors blades.

Amazon Corners Market on Gillette Products

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by: Philip Cohen
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Sun Feb 26 23:52:52 2012

I use an electric clipper to keep my beard very short; haven't bought a Gillette anything for so long I can't remember when ...

eBay / PayPal / Donahoe: Dead Men Walking

Amazon Corners Market on Gillette Products

by: scrappymomtotwins This user has validated their user name.

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Mon Feb 27 00:56:48 2012

Another one is PX90 excercise videos. That will get your entire account shut down in a heartbeat.

Amazon Corners Market on Gillette Products

by: frustrated This user has validated their user name.

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Mon Feb 27 07:29:28 2012

The razor blades is due to the billions of dollars in THEFT from everywehre to Walgreens to Walmart.

They will likely shut down sales of anti acid meds, razor blades, anything small and easily stolen. Pretty ahrd for legitimate sales to compete with items being shoplifted by the TON. (literally)

The black market for razor blades is astonishing.

Along with other small items.

They have teams going into these stores, even storing them in warehouses. They stay in hotels, and store the stuff in U-Hauls parked outside.

Read Black Market Billions.

Amazon Corners Market on Gillette Products

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by: Stockmiser

Mon Feb 27 07:57:30 2012

Regarding Oral B products...my family owns 4 Oral B electric toothbrushes and I regularly need to order new heads. Late last year I decided to look for deals on Amazon and found huge price disparities for what appeared to be the same product. But when I looked over product reviews, I found many saying that the cheaper heads were all chinese counterfeits that didn't work properly or broke after a few uses. Many of these were being offered via Amazon fulfillment (free shipping). It was very discouraging and I ended up buying them at my local SAMS club.

At least regarding Oral B, the counterfeiting completely distroyed the market - who would buy a pack of brunch heads for $50 when someone selling what looks like the identical product for $17? And if it's being physically shipped by Amazon, it's kind of hard for them to use the old ''just a venue'' claim to hide responsibility.

So I think it's a combination effect. The shared liability, the poor customer satisfaction, and the disruption of the legitimate retail channel made the decision to partner up with the manufacturer a no-brainer for Amazon.

Amazon Corners Market on Gillette Products

by: williebob This user has validated their user name.

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Mon Feb 27 13:09:34 2012

I have been a 3p seller on Amazon for 3 1/2 years. Even if Amazon allowed sellers to list these products, the only time the 3p sellers could come out would be when Amazon runs out of stock and then they would sell some for a while until Amazon can restock. Regular sellers cannot compete with Amazon on anything. I buy knives at typical wholesale from a distributor and try to mark them up for a profit, Amazon buys the same knives directly from the manufacturer and sells them at or below my wholesale costs. Unless you are a mega/mega seller or Amazon the way of survival is to carry products Amazon can't get or have something they haven't found yet. Amazon has most of its sellers trained to sell their stuff so low to try and compete with Amazon that the sellers are really spinning their wheels. On most name brand known products you are basically competing with Amazon on everything and if you do sell something they get 15% right off the top.

Amazon Corners Market on Gillette Products

by: pace306 This user has validated their user name.

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Mon Feb 27 13:59:50 2012

Not "new news" except that its about Gillette. Its quite old news if you sell Sony, Toshiba, Hitachi, Denon, Casio, Monstercable Headphones, and many many other items. Amazon has simply (in collusion with Gillette) cut out 3p sellers.... Its how the Amazon game is played. 3P sellers do the hard work, list the items, sell the life out of it and when Amazon has had its fill - or is directed to by the manufactorer (DUH they lie when they tell you they dont know how it happened) YOU the 3P seller gets kicked out.

Amazon Corners Market on Gillette Products

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by: Ming the Merciless

Mon Feb 27 15:54:00 2012

BULLETIN, Amazon 3Ps!

Amazon is NOT your friend any more than ebafia is/was!

They already have and will continue to steal the names of your suppliers from you and then put you out of business on Amazon.

The ONLY way to beat these thieves would be to open a member owned coop website.

In some respects, selling on Amazon is far more abusive and dangerous than selling on ebafia.

The ebafia/PreyPal criminal syndicate facilitates shoplifting of largely individual products

Amazon takes shoplifting to a whole new level by facilitating shoplifting entire product lines by engaging in unfair, anti competitive trade practices.

Unlike ebafia who doesn't want small sellers to be successful and makes sure most aren't, Amazon wants 3Ps to be successful so they take over your market on Amazon.

But in the end I suppose it will be just like it was on ebay. Sellers initially denied the validity of the warnings, viciously attacked those who warned what was happening, and were painfully slow in recognizing what the Evil Whitman-Donahoe Axis had planned.

Don't let Amazon sneak on you. Get rid of them before they steal your business by forcing you to disclose your business secrets.

Amazon Corners Market on Gillette Products

by: comet

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Mon Feb 27 23:59:27 2012

I happened to "overhear" some younger guys in a WalMart one eve BRAGGING about how MUCH they had just stolen from a LOWES a few miles away. They were talking about how they had shoved TOOLS---larger tools like power saws! Down their pants and in their jackets.

Little did they know but I happen to be married to the manager of the Lowes store that just so happens to share a parking lot with the Walmart they were in. And who knows all of the Lowes mgrs in the NY corridor. So----word gets out FAST when stupid people stand there and BRAG about it and think the woman in the wheelie cart not only can't walk but apparently can't hear or see either.

And we have seen people cram totes full of stuff and then walk right thru checkout and only pay for the tote. And then there are those who pass items to a buddy waiting outside the garden area fences.

The most stolen item at LOWES? The DYSON power vac. Yup that most 'nourmous beasty power tool.

Now of course this is a bit different than what AMAZON is doing to it's sellers but if these physical thieves are going to get AWAY with damaging B&M stores bottom line via theft that is encouraged by being able to sell this stuff on ebay or Amazon----

Ya kinda gotta think of all the angles here not just Amazon is Evil

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