So for years Amazon sellers have beenafraid that Amazon could be taking third party seller data and using that to comeup with their own brands their own products under their Amazon basics andother brands that directly compete with third-party sellers and actually usethat data to figure out what is selling well to then launch their own productsthis has always been a fear and in the last day this crazy article came outthat is apparently having proof that this is actually happening and a ton ofyou guys linked to me this article so I figured why not turn on the camera andgo through this article together and see what it actually says and try to givesome thoughts on top of it and let’s just get the YouTube algorithm stuff outof the way smash the like button leave comments on this video subscribe to thischannel if you haven’t already hit that Bell there’s plenty already on thechannel those things really help the YouTube algorithm gods potentially pushthis video out to new people so it is really greatly appreciated Amazonscooped up data from its own sellers to launch competing products contrary toassertions to Congress employees often consulted sales information onthird-party vendors when developing private label merchandise and just incase this video reaches people that are not Amazon sellers Amazon is a platformAmazon doesn’t sell directly most of the items on amazon.

com most of them aresold by third-party sellers people like you or I or bigger companies smallercompanies that can jump on and sell their own items but they also have somethat are literally their own products and then they also have other people’sproducts that they are selling directly so they are like a retailer they are aplatform and they also have their own products so this is saying this thisfear is is Amazon using all the data they get to then develop their ownproduct lines and wipe everybody else out the article starts right outblatantly saying Amazon Inc employees have used data about independent sellerson the company’s platform to develop competing products I practice at oddswith the company’s stated policy so big allegation let’s see what else it has tosay it says that based on interviews with 20 former employees that they’resaying the employees are claiming this is exactly what they did they would usethis to figure out how to price an item what features to copy whether a productwas what the earnings potential were for that particular productand it’s saying that it was basically a common practice for these formeremployees and even one current employee so far this is nothing surprising I meanas a seller we’ve always kind of expected this is happening and I’m stillkind of waiting for the article to prove that it’s happening like other retailerswe look at sales and store data to provide our customers with the bestpossible experience Amazon said in a written statement however we strictlyprohibit our employees from using non-public seller specific data todetermine which private label products to launch so that in theory would meanthat they are kind of doing this the same way we are you know we have accessto tools like jungle Scout and helium 10 discussed in the description so that youcan you know figure out roughly what things are selling and this claims thatyou know Amazon itself is not going behind the scenes and getting anyspecial information like looking at your seller account and seeing where yoursupplier is and how much you’re selling for and your margins and it’s literallylike your exact stuff how much you’re spending on ads you know there’s a lotof information they could have that is deeper than what we can get publiclyAmazon said employees using such data to inform private label decisions in theway the journal described would violate its policies and that the company haslaunched an internal investigation so they’re they think that there’s a chanceI’m kind of skipping through to try to find the juicy parts it’s basically justsaying that Amazon does this because they can get better margins by sellingproducts directly of course that’s the same reason that this business modelprivate label and making your own brand is exactly what we do and what I talkabout on this channel obviously that’s where the opportunity is more than justyou know taking a percent obviously Amazon makes a ton of money there toobut that when they are already doing that they already have that part ofmargin and then they can control it from the manufacturer as well then clearlytheir margins on that stuff is insane amazon has said it has restrictions inplace to keep its private label executives from accessing data onspecific sellers in its marketplace where millions of businesses from aroundthe globe offer their guilt after their goods and interviews former employeesand a current one said those rules weren’t uniformly enforced employeesfound ways around them according to some form of employees who said using suchdata was a common practice that was openly discussedduring meetings yeah I would almost I mean I was gonna say I find it hard tobelieve Amazon would actually restrict that data to those people but I guessthat is potentially believable whether it’s happening or not because theyobviously know the risks they’d be facing by letting those private labelexecutives do that they would know that this type of backlash is exactly whatcould happen so it actually does seem reasonable that they would they wouldwant to hopefully segment out those parts of the businesswe knew we shouldn’t said one former employee who accessed the data anddescribed a pattern of using it to launch and benefit Amazon products butat the same time we are making Amazon branded products and we want to sellthem so now I’m starting to get the feeling that it’s not even necessarilyAmazon that is evil itself it’s more like you have a team of corporateexecutives that are probably rewarded based on the performance of theirdepartment the private label department in this case and maybe they are notsupposed to be doing this yet they know that by doing this it will increasetheir chances of success so that actually seems more believable thanAmazon making the executive decision to just go and do this because it seems soobvious that the backlash I mean that’s just that’s like controlling theplatform and going direct like there are it’s definitely something that iscontroversial if access was restricted managers sometimes would ask an Amazonbusiness analyst to create reports featuring the information according toformer workers including one who called the practice going over the fence okayin other cases supposedly aggregated data was derived exclusively or almostentirely from one seller former employees said so I like that going overthe fence is funny it’s like code for kind of seeing the other side of what Iguess they’re not supposed to be looking at that’s that’s funny but yeah you knowI definitely think this is both probably happening and also something thatwouldn’t have surprised me if this had come up right now a year ago two yearsago you know it’s kind of just something expected of sellers and I’ll touch onlater in the video kind of my Sahn what this really means for us assellers here it’s saying that they draw a distinction between the data of anindividual third-party seller and what they call aggregated data and they’rethey’re basically saying that by looking at overall stats that is you know lessof an intrusion than kind of picking out one particular seller and digging uptheir numbers Amazon said that if there is only one seller of an item and Amazonis selling returned or damaged versions of that item through its Amazonwarehouse deal’s clear its account Amazon considers that aggregate data andhence is permissible for its employees to review that part slightly unclear tome to be honest I’m not sure if they’re referring to the data that they havefrom selling the used goods or if they’re saying they could look at thatlisting in its entirety probably to look at their own seller information I wouldassume which actually doesn’t seem too bad if they from my perspective so thengets into this example of this Fortin car trunk organizer which is apparentlyhas done super well thirty three thousand units in the twelve monthsleading up to this and apparently Amazon launched one almost identical and had abunch of data on their sales and some of this says the part that I am confusedabout about whether there was somebody else selling them and that’s why theytook the data and I’ll leave it at that cuz I I honestly just read this for likea few minutes straight over and over and still don’t fully understand this partwe would work backwards in terms of the pricing said one of the people he usedto obtain third-party data by knowing Amazon’s profit per unit on the thirdparty item they could ensure that the perspective manufacturers could delivera higher margin on an Amazon branded competitor product before committing toit said another person who acts as the data says Fordham launched in March 2016became number one in the category spends as much as sixty thousand dollars amonth on Amazon advertisements and that all goes directly to Amazon Amazon istaking at least four dollars or whatever in profit after their shipping on justthe fees so that money is already going to Amazon just for this private labelproduct and then they’re taking that data to then go and launch their owndefinitely a bit dirty pulling data on competitoreven individual sellers was standard operating procedure when making productssuch as electronic suitcases Sporting Goods or other lines said the person whoshared the Fordham documentation such reports were pulled before Amazon’sprivate label decided to enter a product line the person said okay so articlesgetting a little long let me just give some thoughts on top of it because thatis already the gist of it as I said you know this has always been expected andfeared feared but also just like known you know not that surprising but the waythat I see it is I still don’t think this is that big of a concern I thinkit’s a massive concern for these rare cases where a private label business hasone killer product that is doing millions a year and they do nothing elsewell then yeah Amazon is probably going to see that that just seems prettyreasonable other people are gonna see that toothe problem is obviously Amazon using that data to their own advantage that isI’m not saying that’s not messed up but obviously you’re going to havecompetitors coming in if you’re selling one product and it’s doing insanely welland if you’re a private label seller on Amazon chances are you’re not that bigof a fish for Amazon to be directly targeting you or your market is bigenough such that there’s already a Amazon basics or Amazon brand competingin there in your space and it just doesn’t even matter because getting intothe next point maybe you have a more unique product or you’ve actually gonethrough the steps to build a brand build something a bit proprietary andinteresting to where it’s not just a complete commodity where Amazon can justvery easily do the exact same thing not that Amazon can’t copy yourdifferentiations – that is definitely possible but I think it’s a order ofmagnitude less likely to happen and on top of that something I’ve beenpreaching for years is to not rely on the single product to not rely on thesingle platform you know you should continuously be launching new productsunder the same brand expanding that out to not just rely on one because productshave life cycles they might crush it and then they might die over time you shouldalso be considering new brands over time new product lines you should beconsidering taking this product into retail and store shelves and selling iton your own site and other platforms and getting your customers onto email listsand really building a true brand because as great as an operathat Amazon is and still is right now to kick-start a product brand as much asthat is true it is incredibly risky to have all your eggs in that one basketforever and this is not the end-all be-all this is like using a Kickstarterthis is like using a Kickstarter and then you get all the emails and then youbuild the brand at the Instagram and all that it’s very similar with Amazon youcan’t just rely on it as an Amazon business to just run completelyperfectly smoothing for years and years so overall to be completely honest thisthis doesn’t make me that afraid there are definitely things on Amazon thatmake me afraid but this is just not really one of them because they’re notdoing every product in existence right and most likely even if they get intoyour market it’s probably not going to completely wipe you out and you shouldbe expanding it to other ones anyway so it’s kind of just about being nimble andmoving fast and expanding and getting out to different platforms and differentproducts and new brands and new opportunities and following where theopportunity is shifting finding where your customers are where do they hangout what do they talk about what are they really interested in because Amazonis not doing all of those things amazon is offering basic commodity productsAmazon is not building a full-on customer experience for a person that isbuying your product because it accomplishes something for them they arethey’re not doing that for every single brand I don’t see these brands havingfollowings and missions and everything that makes it a cohesive real thingbeyond just being a slightly crappier version of whatever you might be sellingand I think Amazon just shadier stuff than this for example if they if if youtype in trunk organizer and you click on the fordham one and it might show alsosold by Amazon brands or whatever I think that detail is way darker than thefact of Amazon just selling their own product – I almostthat doesn’t seem half as bad as Amazon trying to then shift the sales directlyinto their own brand off of yours that I see as a separate issue personally and Ithink that is a bigger issue but yeah personally I don’t think this is thebiggest concern too do I think it’s happening probably Ijust don’t think it’s like the biggest concern for you to have I think there’sstill a lot of opportunity on Amazon and I think that if you were maybe you werealready looking at the opportunity the wrong way if this is the type of thingthat would completely knock you off the path Amazon is a great platform it’s agreat place where there’s already a ton of customers that you can help introduceto your products and your brand but hopefully that is just a piece of yourstrategy and if you want to get started selling on Amazon definitely subscribeto this channel check out my hundreds of past videos there’s a link in thedescription to a free hour long training where well it will walk you througheverything you need to know a lot to get started so I highly recommend that as aplace to start you can check out the other links in the description as wellthere’s a free Facebook group there is my paid full training my zero to brandcourse everything a to Z if that is a fit for you that is available as wellsoftware and tools for Amazon basically everything there’s a lot of links in thedescription smash that like button subscribe and yeah hope you enjoy thisvideo and.

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