If it seems like your Amazon search results have been overwhelmed with promotions for your private labels, like Amazon Basics, Mama Bear, or Daily Ritual, that may be changing. As lawmakers pay more attention to the most powerful tech companies, Amazon has quietly begun to remove some of the more obvious promotions, including banner ads, for its private label products, reports CNBC, which spoke to sellers and consultants. from Amazon.
The aggressive marketing of its own private labels by Amazon, with ads often appearing in search results above competing item listings from third-party sellers, has raised antitrust concerns. The company’s growing complaint in the U.S. retail market has been under control for years, but the pressure intensified last month when Massachusetts senator and Democratic presidential candidate Elizabeth Warren announced that the tech giants Amazon, Google and Facebook (and other companies with an annual publication) Global revenues of more than $ 25 billion providing market, exchange or third-party connectivity as “platform utilitilies”) to reduce their economic dominance will be an important part of your platform. This means that Amazon Marketplace and Basics would be split, and acquisitions that include Whole Foods and Zappos would be rolled out.
Amazon’s private labels quickly became a major threat to third-party sellers on its platform, rising from a dozen brands in 2016, when some of its products began to take the lead in key categories like batteries, speakers, and wipes. babies, to a current list of more than 135 private labels and 330 exclusive Amazon brands, according to TJI Research.
Although Amazon benefits from higher margins, cost savings from a more efficient supply chain, and new data, third-party sellers often suffer. For example, they may have to cut prices to stay competitive, and even lower prices may not be enough to lure customers away from Amazon’s promotions for their own items, which appear in many search results.
Other recent steps Amazon has taken to protect itself from antitrust scrutiny include ditching its third-party price parity requirement, which means they weren’t allowed to sell the same products on other sites at lower prices.
TechCrunch has reached out to Amazon for comment.