Dive Brief:
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Brands that have entered into an agreement with Amazon garner protection from third-party competitors and better placement, among other perks, while those that don’t pay for those privileges suffer for it, according to a new study by L2 Think Tank, “Amazon 2014” in which it calls the e-retail giant a “Great White Shark.”
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For example, the study contrasts Levi’s, which has entered into a partnership with Amazon, with Ralph Lauren, which hasn’t. Amazon shoppers will find 9,000 Ralph Lauren items available through other sellers through the site. Levi’s goods, however, are only available on Amazon through Amazon and the Amazon-Levi's page. Procter & Gamble has also benefited greatly from their Amazon deal.
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Major retailers are also pushing back against Amazon’s dominance by offering free shipping and using their brick-and-mortar stores to improve their supply chain.
Dive Insight:
We are accustomed to seeing Amazon as a consumer-centric behemoth willing to lose money to beat its competition, but this is another side of the retail giant. L2 Think Tank’s Amazon report gives a good picture of how these special partnerships are affecting the retail landscape.