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Comment by snow_mac

One thing everyone is getting hung up on is the fact that Amazon isn't wholesaling the dongle. The contract isn't a wholesale deal, meaning if your widget doesn't sell, it's sitting on your balance sheet, not on Amazon's balance sheet. It would be like if Costco instead of buying 1000 legos, just stocked legos in it's warehouse, then paid Lego company everytime a single unit sold. Then they figured out how to make their own legos through a different supplier, they fixed the original Lego price $5 more expensive then the store brand legos. Now Legos sell for $30 a box and Kirkland Legos sell for $25 a box, same exact product, just a few bucks cheaper. Oh and lego couldn't drop the price from 30 to 20 to compete....

That's what Amazon has done. Price fixing and control of the competitors inventory. Damn bastards.

parent snow_mac 4 years ago

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