aleksl2 - 1:31 pm on Jul 5, 2012 (gmt 0)

Yes, Amazon competes with small merchants.

Yes, Amazon WILL outrank (especially after Panda/Penguin) your site in Google for your product KW, both in free SERPs and on G Shopping.

Yes, Amazon uses fulfillment to spot new best selling products and WILL sell those themselves.

Yes, Amazon constantly bombards merchant with offers to sell for less, even though it is obvious (by actual dollars) that instead what they need to do is to bombard that one guy who sells out of his basement for fun that has lowest price than everyone to FORCE him to bring the price UP (close) to the level of everyone else (so him AND everyone else earns MORE, not LESS).