Amazon calls itself small business pal with Bezos set to testify

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SEATTLE (July 21): Amazon.com Inc is touting the success of the independent merchants on its site, previewing arguments chief executive officer (CEO) Jeff Bezos is expected to make next week to a congressional committee.

The Amazon founder is scheduled to testify yesterday before a House of Representatives panel probing competition in tech, alongside the top executives at Apple Inc, Alphabet Inc and Facebook Inc. It will be Bezos’s first appearance before Congress.

Small and medium US-based sellers averaged more than US$160,000 (RM681,920) in product sales on Amazon in the year ended May 31, up from about US$100,000 during the prior period, the company said in a report released today. These merchants sold 3.4 billion products during the period, up from 2.7 billion a year earlier.

A periodic disclosure detailing Amazon’s small-business offerings from seller support to cloud-computing software, the report didn’t offer specific explanations for US merchants’ rapid sales gains. But a spokesman said sellers continue to broaden their product offerings and take advantage of tools Amazon built to help reach customers. Amazon, like many online retailers, also was inundated with orders earlier this year from people sheltering at home as the coronavirus pandemic spread.

Amazon’s positioning as a friend of small business may help blunt criticism that the company abuses its market power. Bezos last year used his closely watched letter to shareholders to highlight the success of third-party sellers. And today, global consumer chief Jeff Wilke talked up Amazon’s support for small businesses. “Our success depends on their success,” he said.

But critics said Amazon had used its trove of data on merchants to identify bestsellers and then gin up copycat products. The company said use of data from individual sellers isn’t allowed, but The Wall Street Journal reported earlier this year that Amazon teams found a way around the prohibition. Some merchants also said Amazon uses its clout as the world’s largest e-commerce company to charge ever-rising fees to list and advertise on the site.

In addition to the scrutiny from Congress, Amazon faces probes by the US Federal Trade Commission (FTC), the European Commission and the state of California, which are all said to be examining the digital marketplace.