Amazon pushes up prices across the Internet

This article, 'How Amazon pushes up prices all across the Internet,' argues that Amazon's business model systematically drives up consumer prices, even on competitor platforms. It details how Amazon achieves this through a combination of hefty seller fees and restrictive pricing policies, a system currently under scrutiny by the FTC and other regulators.

• Amazon charges sellers an array of fees—including referral, fulfillment (FBA), and advertising—that can consume up to half of a product's sale price.
• While some fees appear optional, the article contends that they are effectively mandatory for sellers to gain visibility and 'Prime' eligibility, crucial for sales volume.
• These substantial costs compel sellers to increase their product prices to maintain profitability.
• Crucially, Amazon's 'Fair Pricing Policy' prohibits sellers from offering their products cheaper elsewhere, forcing them to match their Amazon-inflated prices on their own websites and other retailers.
• This practice, often referred to as 'enshittification,' eliminates price competition across the internet, leading consumers to pay 'Amazon prices' regardless of where they shop.
• Regulators, including the US FTC and German authorities, are pursuing antitrust actions against Amazon for these alleged monopolistic practices.

Ultimately, the article posits that Amazon's sheer market dominance means sellers cannot afford to leave, trapping them in a system that stifles competition and passes hidden costs directly to consumers.