There were a lot of basically scams for a while where because people trust amazon so much, they buy amazon. So sellers would take something that sells for $99, and sell it on amazon for $199 or sometimes for even more ($299 etc).
In the short run amazon makes more money (commission on the sale) but in the long run this hurts Amazon's brand.
I manage an amazon business account where this is a particularly bad issue because buyers are not spending their own money. They will literally spend $500 on something that is $50, because they like Amazon's reliability around delivery, the purchasing is very smooth, returns are smooth etc. I feel like they cracked down on this maybe 4-5 years ago? But still stuff slips through.
So yes, I very much like that they don't allow sellers to mark up crazily on Amazon's site.
In the short run amazon makes more money (commission on the sale) but in the long run this hurts Amazon's brand.
I manage an amazon business account where this is a particularly bad issue because buyers are not spending their own money. They will literally spend $500 on something that is $50, because they like Amazon's reliability around delivery, the purchasing is very smooth, returns are smooth etc. I feel like they cracked down on this maybe 4-5 years ago? But still stuff slips through.
So yes, I very much like that they don't allow sellers to mark up crazily on Amazon's site.