Amazon is testing promoting its own private labels under competitor's listings:
sponsored product ads in customers' baby registries.These ads looked exactly like listings the shoppers had selected themselves, except for a light gray"Sponsored" tag present above the product name. While placing ads like these is a good way for Amazon to monetize the space on its marketplace, these ads may have been highly intrusive to customers, potentially causing them to receive gifts they didn't even want.
Overt demonstrations of the power it has over its marketplace, while perhaps beneficial in the short term, could invite antitrust legislation. Whether it's better private label exposure or increased ad revenue, these moves can certainly give Amazon temporary boosts. However, using its power this way can also invite deeper scrutiny from legislators, some of whom have already expressed skepticism regarding the e-commerce giant. For, Senator Richard Blumenthal asked the Department of Justice and the Federal Trade Commission to investigate the requirements for possible antitrust violations in December.
And 2020 Presidential hopeful Senator Elizabeth Warren said that Congress should pass a law preventing large companies from owning a marketplace and selling on it simultaneously. Practices like showing pop-ups for private brands on other sellers' listings is only going to fuel arguments like these in the future.1. Sign up for the E-Commerce Briefing to get it delivered to your inbox 6x a week.
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