Amazon: Monopoly in online retail? Plusminus SWR

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ARD Marktcheck

Published on May 25, 2022
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Amazon currently has a market share of 55 percent in online retail. The shopping cart window is called Buy Box. It is very important for every retailer in order to increase sales. However, the Amazon algorithm decides who gets the Buy Box. Amazon currently has a market share in online retail of 55 percent. The shopping cart window is called Buy Box. It is very important for every retailer in order to increase sales. However, the Amazon algorithm decides who gets the Buy Box. ----------- This video is a long version from the ARD Plusminus broadcast on May 25, 2022, for which SWR is responsible. The entire documentary is also available in the ARD media library at: http://x.swr.de/s/amazonmacht ----------- In 2021, Amazon's market share rose to 55 percent. While Zalando, Otto Kaufland and Co. together only account for ten percent, the giant's market share has increased even further during the corona pandemic. The remaining 35 percent is shared by hundreds of thousands of online shops. HOW AMAZON CONTROLS PRICES The so-called Buy Box, the shopping cart field, plays a very important role here. The Amazon algorithm uses it to decide which products are shown to the customer first. Price and delivery speed are particularly important criteria. Often the cheapest provider with the fastest delivery time gets the Buy Box for their product. The disadvantage: All other providers hardly make any sales. Because the buyer can only place their order via the Buy Box. Plusminus has researched and found that retailers change their prices on average more than 30 times a day in the fight for the Buy Box. This is not a disadvantage for the customer at first, because the cheapest products often get the Boy Box. However, Amazon itself is also a retailer on the Amazon Marketplace and sells products. Retailers that Plusminus was able to speak to doubt that the same rules apply to Amazon as a retailer as to other retailers. An exclusive price analysis prepared for SWR research shows that customers are sometimes shown more expensive products from Amazon, even though there was a cheaper provider. Amazon denies favoritism and points out that other criteria play a role in addition to price and delivery speed. HOW ARE THE AUTHORITIES RESPONDING? In Brussels, the EU Commission has been investigating since 2020, among other things, whether the online giant Amazon is discriminating against other retailers on its platform. Antitrust law experts say that private companies should not be allowed to determine how competition works and which demand is served by which provider. In addition, there have already been complaints from retailers that Amazon is misusing data and using it for its own benefit. The Federal Cartel Office will decide in a few weeks whether a company is of "outstanding cross-market importance for competition". WHAT IS THE DIGITAL MARKET ACT? A new EU law is intended to limit the power of Amazon, Google, Facebook and Apple. It is intended to clearly define what they are allowed to do and what they are not allowed to do in the future. The law comes into force at the end of 2022. After a grace period of two years, affected companies must expect consequences. Film authors: Julian Gräfe and Jörg Hommer Image source: Montage SWR /DPA ----------- ► How companies can prepare themselves for delivery failures Plusminus SWR: • How companies can prepare themselves for delivery failures... ► Electricity gap: Will the price of electricity continue to rise? Plusminus SWR: • Electricity gap: Will the price of electricity continue to rise... ► Mask debacle: Court orders federal government to pay millions Plusminus SWR: • Video ► Corporate insolvencies: Is a big wave looming? Plusminus SWR: • Video ► Mask debacle: Who will pay for the federal government's expensive procurement? Plusminus SWR: • Mask debacle: Who pays for the expensive... ----------- ► More Plusminus in the media library: http://x.swr.de/s/plusminus ► Subscribe to our YouTube channel here: http://x.swr.de/s/13x1 ► More about Marktcheck on our Facebook page: / marktcheck ► More about our Ökocheckers can be found on Instagram: / oekochecker ► Comments are welcome - but please observe the netiquette: https://www.swr.de/home/netiquette-10... ► Legal notice: https://www.swr.de/impressum/ #Amazon #Consumer #Plusminus

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