Allowing Third-Party Sellers to List Their Products on Amazon Is

question 49

Multiple Choice

Allowing third-party sellers to list their products on Amazon is controversial. Why would Amazon allow products sold by others to appear on its site?

• A) Selection attracts consumers.
• B) A network effect competitive advantage is created where more buyers attract more sellers, giving Amazon an advantage over any rival attempting to create a similar marketplace.
• C) Although products are sold by third parties, Amazon gains valuable data on things such as customer browsing habits and sales.
• D) Amazon's brand is reinforced as a first-choice shopping destination.
• E) All of the above.

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Definitions:

Home Construction

The process of building residential structures, such as houses and apartments, often involving design, planning, and assembly of materials.

Demand

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specified time period.

Supply

The total amount of a product or service that is available for purchase at any given price.

Labor Union

A collective organization of employees who bargain as a unit with employers.