Year by year, the eCommerce Industry is exploding in size, with billions of dollars being spent on online purchases. A large chunk of these purchases occur on Amazon, which is the world’s largest online shopping portal.
Now imagine if products are banned on Amazon, which means that a substantial amount of sales, exposure and revenue would be lost. Which is exactly what Amazon is doing, by banning the Chromecast and the Apple TV.
It was first reported by Bloomberg and later confirmed by Amazon itself, which stated that the ban applies to all sellers and all Amazon portals. Sellers have till October 29th before the listings are removed.
The reason? They don’t have Prime Video. Amazon claims that Prime Video is becoming an increasingly important part of what Amazon is offering, and other companies should play well with Prime Video.
The Apple TV and the Chromecast aren’t exactly compatible with Prime Video, so they are being removed. Amazon has cleverly shifted the odds in its favor, and is shifting the blame on the companies while omitting the fact that it was Amazon which decided to not develop Prime Video apps on these platforms.
Indeed, Amazon has disguised a sales tactic as a consumer-friendly move in a bid to increase sales of the Fire TV and the Fire TV Stick. Amazon is in a convenient position to control the sales of its competitors. Ban one product, its sales drop and Amazon can continue to market its own products on its own portal which incidentally is the world’s largest online shopping portal.
However, other products that do support Prime Video are allowed to stay on Amazon. This includes the likes of the Roku, the PS4, etc. Amazon is using Prime Video merely as a tool to remove the competitors that it thinks could be a major threat to its own products.
It is worrying however. Amazon has shifted from its laissez-faire approach to its online store, which means it may very well start to ban competitors in the guise of ‘consumer-friendliness’. What do you think?