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The High-Speed Trading Behind Your Amazon Purchase - WSJ
By CHRISTOPHER MIMS
Updated March 27, 2017

Beneath the placid surface of product pages lies an unseen world of bots, algorithms, flash crashes and fierce competition......Just beneath the placid surface of a typical product page on Amazon lies an unseen world, a system where third-party vendors can sell products alongside Amazon’s own goods. It’s like a stock market, complete with day traders, code-slinging quants, artificial-intelligence algorithms and, yes, flash crashes.

Amazon gave people and companies the ability to sell on Amazon.com in 2000, and it has since grown into a juggernaut, representing 49% of the goods Amazon ships. Amazon doesn’t break out numbers for the portion of its business driven by independent sellers, but that translates to tens of billions in revenue a year. Out of more than 2 million registered sellers, 100,000 each sold more than $100,000 in goods in the past year....It’s clear, after talking to sellers and the software companies that empower them, that the biggest of these vendors are growing into sophisticated retailers in their own right. The top few hundred use pricing algorithms to battle with one another for the coveted “Buy Box,” which designates the default seller of an item. It’s the Amazon equivalent of a No. 1 ranking on Google search, and a tremendous driver of sales.
fulfillment  Amazon  pricing  back-office  third-party  bots  algorithms  flash_crashes  competition  retailers  e-commerce  product_category  private_labels  stockmarkets  eBay  Wal-Mart  Jet  Christopher_Mims 
march 2017 by jerryking
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