Massive monopoly power. Some profit is better than none, even as Amazon works to make 'some' as small as possible.
> Demanding price parity is completely standard for all resellers and market places, pretty much on all scales and all around the world.
Price parity would be great if they were selling the product to Amazon, and Amazon was demanding that price be the same among all retailers. Because of the structure of the deal with this markup, we need to consider the numbers with and without the markup.
> the standard hacker response
Wha.
Also I want quality competition and I only want to regulate anti-competitive things.
> But try to think about why Amazon would put such a thing in their contract.
Because it benefits them.
> If they were just out to abuse any power dynamic, they would of course tell sellers that they have to put a more expensive price anywhere else.
That would get them more scrutiny and be too obviously unfair. Demanding the same price sounds fair until you look into the details.
> Price parity is fair for all parties involved.
Parity is fair when you properly include or exclude markups based on context.
> And if sellers think Amazon's fees are too high then they shouldn't use Amazon
And lose most of their sales? It's an abusive relationship because of the power Amazon has, and they structured these rules to limit the ways other companies can compete.