Amazon.com, Inc. (NASDAQ:AMZN) is offering some special benefits and privileges by signing deals with companies that market their products on its website, according to a latest study by L2. Bloomberg has quoted this study in an article, adding that Amazon.com, Inc. (NASDAQ:AMZN) gives customizations and flexibility to all the companies, which are partnering with the online retailer.
Therefore, companies like Burberry Group Plc (BURBY) and Levi Strauss & Co are enjoying special offers from Amazon.com, Inc. (NASDAQ:AMZN) through which they can control the way their products are staged on Amazon’s website. Similarly, Procter & Gamble Co. (PG) has a partnership with Amazon, which helps its products to be more visible on Amazon as compared to its competitors like Unilever N.V. (ADR)(NYSE:UN). This step by Amazon is to expand its partnership with more companies and capture the market.
Amazon.com, Inc. (NASDAQ:AMZN)’s CEO, Jeff Bezos, is reported to be taking strict action against all those companies which are not partnering with Amazon. Companies which are not partnering with Amazon have reported depletion in the sales through Amazon because their products get hidden under thousands of other competitors.
“Amazon is the most disruptive force in the largest economy in the world,” Bloomberg quoted Scott Galloway, a cofounder of L2 market research firm.
Bloomberg added that Jeff Bezos has frequently claimed that he is trying to nurture the “Open Bazaar” environment in Amazon, where different companies can enjoy flexible market facilities, but the indicators are against this. Burberry Group plc (LON:BRBY) is another company which has gained a lot benefits from Amazon,according to the report.
“Burberry Group plc (LON:BRBY) has strategically traded the official distribution of a limited number of its SKUs in exchange for Amazon.com, Inc. (NASDAQ:AMZN) cleaning up third-party distribution of other Burberry Group plc (LON:BRBY) products,” Bloomberg quoted L2 researchers.
Disclosure: None
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