Amazon has been accused numerous times of selling products that are popular on its platform. In 2019, Shoemaker – Allbirds’ co-CEO Joey Zwillinger called out Amazon for releasing a knit shoe with “striking resemblances” to its own product. A Wall Street Journal investigation last April found that Amazon uses data from third-party sellers to help develop its private-label goods.
Once they launch a similar product, they list their in house product as “Amazon’s Choice” over the competing brand’s product at the same time, at a lower price too! This has led to the rise of businesses which focus on buying up third-party Amazon sellers like Thras.io.(more here)
Recently, camera and travel gear maker Peak Design called out Amazon for copying its “Everyday Sling” bag in a video ad released last week. The bag has been being sold since 2017 for 99$. In October 2020, Amazon Basics came out with a similar product for $35.14. Dering said Amazon’s ability to offer a version of its sling bag at such a discounted price “absolutely impacts our business in a pretty big way.” The similarity was so striking that Amazon did not even bother to change the name of the product. It was selling as Amazon Basics Everyday Sling!
CEO of Peak Design, Peter Dering said the company thought of filing a lawsuit, but then decided to release the short ad. On March 03, Peak Design released an ad titled “A Tale of Two Slings: Peak Design and Amazon Basics,” mocking Amazon’s copycat product. Soon after the ad went live, Peak Design customers flooded Amazon’s listing for the “Amazon Basics Everyday Sling” with negative ratings, enough that Amazon temporarily disabled reviews on the item. Amazon changed the name of the bag to “Amazon Basics Camera Bag” after Peak Designs published its video.
Amazon now has at least 111 private-label brands that offer 22,617 products according to a Coresight Research report published last May.