Amazon’s dual role comes into question
According to Reuters, retailers in Austria have filed antitrust complaints against Amazon (AMZN). The retailers’ main complaint is that Amazon being both a retailer and marketplace operator puts third-party sellers on its marketplace at a competitive disadvantage.
Amazon has not commented on the retailers’ complaint, though the grievance could add to the company’s pressure in Europe. Before the Austrian retailers filed their complaint, European Union competition regulators had been examining Amazon’s double role as a retailer and marketplace operator to see what impact it might have on retail competition in Europe.
Over 50% of Amazon sellers have eBay listings
Amazon’s double retailer–marketplace operator role isn’t just a concern in Europe. In its 2018 report, Feedvisor noted that direct competition with Amazon has become third-party sellers’ top concern. As a result, third-party sellers are eager to diversify their online listings, creating tight competition for Amazon in the race for marketplace dollars. Approximately 52% of Amazon sellers use eBay (EBAY) marketplace as well, Feedvisor data shows. Walmart (WMT) and Shopify (SHOP) host 25% and 17% of Amazon sellers, respectively, and some 4.0% of Amazon sellers have listings on Adobe’s (ADBE) Magento marketplace.
73% of Austrians to shop online this year
Amazon’s retail business strategy is being questioned in a key international market. In Austria, one of Amazon’s more developed international retail markets, 73% of the population is expected to shop online this year, spending $7.9 billion on online purchases.