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Nov 11 2019
Summary
- Over the past 6 months, Amazon has been on the receiving end of public criticism rooted in its marketplace business model.
- A wave of media reports described products on its ecommerce platform that were counterfeit, expired, dangerous, defective, blacklisted by the US government, or manufactured in unsafe overseas factories.
- Its private-label brands have also been a source of criticism, with claims they enjoy a privileged position on an uneven playing field.
- In response, Amazon has undertaken a counter-campaign that includes plans to spend “billions” policing products on its ecommerce site.
- For Amazon, it’s an existential moment where cracks are emerging in the model that helped its retail business get to its current scale.
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