Saturday, December 09, 2017

Amazon Market vs Brands?

 Amazon is spawning a new industry | Search | LinkedIn

The Hidden Player Spurring a Wave of Cheap Consumer Devices: Amazon - The New York Times

"Using Amazon to get around middlemen, Wyze Labs can sell its WyzeCam for $20 to $30, while comparable indoor monitoring cameras from Nest and Netgear cost around $200
The company’s three founders all worked at the retail giant, and they said they had been inspired by Amazon’s high-volume, low-margin approach to sales.
It’s not a race to the bottom...Sellers are forced to create better products at lower pricing, and sellers who aren’t able to do that just get weeded out.
Amazon... started a lending program to allow businesses sell through its platform to scale up; last year, its loans exceeded $3 billion.
In a way, Amazon is providing all this information that replaces what you’d normally get from a brand, like reputation and trust. Amazon is becoming something like the umbrella brand, the only brand that matters.”

Amazon's also sells its own security camera for $120, with similar specs as Wyze.  Marketplace, in particular on Amazon, has many affordable products, but most don't get attention and large sales, and those that do are creating new brands.

Amazon Cloud Cam Indoor Security Camera, works with Alexa

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