Allowing third-party sellers to list their products on Amazon is controversial. Why would Amazon allow products sold by others to appear on its site?
A) Selection attracts consumers.
B) A network effect competitive advantage is created where more buyers attract more sellers, giving Amazon an advantage over any rival attempting to create a similar marketplace.
C) Although products are sold by third parties, Amazon gains valuable data on things such as customer browsing habits and sales.
D) Amazon's brand is reinforced as a first-choice shopping destination.
E) All of the above.

Question

Quizplus · Accepted Answer

Allowing third-party sellers on its platform, Amazon benefits in multiple ways: it expands its product selection, attracting more consumers; it creates a network effect, where an increase in buyers attracts more sellers, solidifying its competitive advantage; it gains valuable data on customer habits and preferences; and it reinforces its brand as the go-to shopping destination. All these factors contribute to Amazon's decision to include third-party sellers on its site.

Allowing Third-Party Sellers to List Their Products on Amazon Is