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Amazon.Com Inc (NASDAQ:AMZN) – Is It Really Undercutting the Third Party Vendors?

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News has it that Amazon.com Inc (NASDAQ:AMZN) is trying to undercut the sales of its customers using the data of its website. Imagine how you would feel like if you were a seller and suddenly you realized that you were competing against the tech giant on whose website you were carrying on the business. Yes, that is exactly what Amazon has been doing with its clients.  According to a report released by Upstream Commerce, the company keeps a tracks of all the sales that the third party makes on its website and then uses that data to sell the most popular of the products directly to the market customers.

According to the research company, it noticed the pattern of Amazon.com Inc (NASDAQ:AMZN) when it was running a competitive analysis research on the company for its clients; specifically on the clothing brands for women.

Upstream disclosed that it sampled around 857 products belonging to the category of women’s clothing; these products were sold by the third-party vendors on Amazon’s site. The analysis report revealed that within twelve weeks of the initial selling process by the original vendor, the company started to sell 25 percent of the most popular and the first bought products through its own vendors.

Market researchers are trying to figure out as to whether it is possible that the company had planned to launch these products but was just a little late in putting them online. According to the co-founder and chief executive of Upstream Commerce, Amos Peleg, the commerce company, while running its research on Amazon, first thought that this was a mere coincidence but the figures were just so high and the analyst company had to conclude that operational ups and downs could not be an explanation.

According to Retail Insiders’ Brain Trust Panel, it cannot be said with a certainty that Amazon is involved in such an activity; however, many members still indicated that it could be a possibility.

The chief executive officer of Black Monk Consulting, Ryan Mathews, said that he did not know whether the news about Amazon was true but he would not be surprised if it was. He further said that sharing is not the specialty of Amazon and thus, the news might be true.

RSR Research’s managing partner, Paula Rosenblum, said that this is no big news as the rumor has been flying around the market forever. According to Paula, when the sellers sell you a product via online services, they do ask you to come back to them in case you want to make another purchase, so it is really a two way process.

Coming to the stock prices of Amazon.com Inc (NASDAQ:AMZN), the company, on the last trading day, October 30, 2014, started its stocks at a price of $293.98 and closed at a price of $299.07, after hitting the highest figures of $299.74. The company has a market capitalization of $136.18 billion and an EPS (earnings per share) of -$0.48.

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