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Consumers can no longer buy products from Macy’s Inc., Buy.com Inc. and Gap Inc. on Amazon.com Inc., as each of the three retailers has decided to pull their products off of Amazon.com’s marketplace in recent months.
“We didn’t want to give them information on product pricing and sales that Amazon could potentially use against us,” says Neel Grover, president and CEO of Buy.com, No. 32 in the Top 500 Guide. Buy.com, which stopped selling through Amazon in October, operates its own e-marketplace for third-party sellers and has a strict policy of not competing against them, he adds. Amazon does often sell the same products as retailers selling through its marketplace.
Wingo, however, says that many retailers selling on Amazon have been concerned that Amazon can use information on their product sales to assist the merchandising and marketing efforts of Amazon.com and other retailers selling through Amazon.com. Another concern is that Amazon could use retailers’ product information to deal directly with their product suppliers and cut the retailers out of the selling loop, he adds.
you are paying Amazon to compete with Amazon on Amazon's home turf.
Ive only got a small stand alone site and I have always stayed away from Amazon due to the fact that I have heard they will compete against you.
So looks like I was correct