Allowing third-party sellers to list their products on Amazon is controversial. Why would Amazon allow products sold by others to appear on its site?
a. Selection attracts consumers.
b. A network effect competitive advantage is created where more buyers attract more sellers, giving Amazon an advantage over any rival attempting to create a similar marketplace.
c. Although products are sold by third parties, Amazon gains valuable data on things such as customer browsing habits and sales.
d. Amazon's brand is reinforced as a first-choice shopping destination.
e. All of the above.

Question

02-04-2021
Business

Answered

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Allowing third-party sellers to list their products on Amazon is controversial. Why would Amazon allow products sold by others to appear on its site?
a. Selection attracts consumers.
b. A network effect competitive advantage is created where more buyers attract more sellers, giving Amazon an advantage over any rival attempting to create a similar marketplace.
c. Although products are sold by third parties, Amazon gains valuable data on things such as customer browsing habits and sales.
d. Amazon's brand is reinforced as a first-choice shopping destination.
e. All of the above.

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stanfordgoddy stanfordgoddy · Answer 1 · 2021-04-03T20:20:09-04:00

stanfordgoddy stanfordgoddy

03-04-2021

Answer:

e. All of the above.

Explanation:

Interestingly, all the above-listed options could serve as a possible reason why Amazon allows products sold by others to appear on its site.

Remember, Amazon is a marketplace; since the definition of a market involves dealings with several entities, it thus logical to expect Amazon to allow people (other sellers) to transact on its platform.

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