My guess is that he wants to develop it as proof of concept then sell to Amazon again (or eBay).
But it seems like Amazon could easily do the same model and call it something like Amazon Cost or Amazon Wholesale. They already have a huge customer and supplier base. If you're a supplier, do you want to go with a well-known brand or a start up?
On the other hand, there are a lot of suppliers who only grudgingly work with Amazon, so there might be enough dissatisfaction to create a lot of defections. Which, in turn, should force Amazon to improve things to lure them back. Or just buy the new company and bring them back kicking and screaming. :)
weeks
3:09 am on Jan 12, 2015 (gmt 0)
I had the same thought as LifeinAsia. It's great to have someone offer alternatives, but in the end Amazon will simply adapt and take it over. And it will be quick.
akmac
10:00 pm on Jan 15, 2015 (gmt 0)
I'm sure there are a number of retailers just waiting for an opportunity to quit paying amazon their pound of flesh. The difference between Amazon and Jet is large commissions paid to Amazon, and ZERO commission paid to jet. Their income is strictly from membership fees, according to the article.
Amazon could roll similar price breaks into PRIME membership, but they will be loathe to stop taking commissions.
