04 Oct

Surprise, Amazon is not a neutral marketplace

I was reading an article on Seeking Alpha, a popular stocks and investment site that I use to track general info about my stocks, when I spotted this article about Amazon banning sales of rival video streaming devices:

There is no such thing as store neutrality. Amazon has all the right to forbid rival products on its online marketplace.

(Via Dear Tim Cook, Amazon Just Banned Your Apple TV 4 – Apple Inc. (NASDAQ:AAPL) | Seeking Alpha.)

The Verge says Amazon’s decision is a baffling question, but it is so easy to understand. Apple’s decision to release a console gaming iOS TV device and its ambition to become a streaming video service provider are seen as threats by Amazon. Bezos, therefore, promptly exercised his prerogative to eliminate current and upcoming threats to Amazon.

I get a lot of flack for pointing out that Amazon is used as a ‘marketplace’ by authors and assumed to be a neutral marketplace by many (not all, lots of smart people out there).

But it isn’t a neutral marketplace. A lot of the Kindle Unlimited moves are really clever from a selling to readers and corporate standpoint (the monthly pot guarantees a cap on author earnings/payouts) [limiting royalties for some countries unless you sign up, limiting percentage Amazon pays you unless you do certain things just the way you want, people keep saying you get total control, but unless you sell on your own site, you get total control, but not total control of the portion you receive). Amazon is the biggest marketplace, hard not to make a living without it.

But no so much neutral.

They’re very careful to not step too far over. The Amazon brand is one of the most trusted by consumers in the world.

But I am always working hard to make sure I stay well diversified, even as I use the marketplace. As a good little author cockroach I’m always curious to see what gets the biggest marketplace to stir and change the rules.