Amazon’s Multichannel Bet

I remember working at eBay around 2000, when Amazon allowed outside merchants to sell their products right next to Amazon’s own inventory. It was a bold move, and also a total shock to the system for eBay – we didn’t expect Amazon to give up its own higher-margin inventory for what at the time seemed like a much lower-margin marketplace model. Of course, we were proven wrong. Now Amazon does it again and lets its sellers manage their sales on Amazon’s direct competitors (Walmart, eBay, Shopify and TikTok) straight from Amazon’s Seller Central dashboard. It’s a similar move – instead of fighting them, you embrace and engulf them, while also gaining invaluable insights into your competitors’ business.