The Decisions Sellers and Brands Must Make on Marketplaces
"I’d rather be out of stock on my own store than be out of stock on Amazon.”
This is a direct quote from a seller in an interesting article by Renee Dudley.
Amazon gets a lot of bad press because they are the most efficient and largest example of a marketplace in the US. But they also get a lot of bad press because of their tactics, how they are against their own sellers (while at the same time promoting their sellers).
The consequences of being out of stock on Amazon are enormous because of how competitive the site is, and how much it hurts you in advertising and ranking in the future.
From a press point of view - despite their ruthless (IMO) tactics - Amazon is in a lose-lose situation. The ultimate reason for this trend is their ever-increasing volume and wanting to fulfill consumer demand. As a result, they have to employ a "next man up" strategy to ensure that consumers get the items they want. This necessarily forces a brand's hand to either participate, or drop out. (normal marketplace decisions)
Brands are used to participating and juggling the best they can. The crush of essential ecommerce food, beverage and other orders during this crisis has made this juggling all the more challenging. Time and tide wait for no man.
