What’s the practical difference? Depending on the terms, if an item doesn’t sell, they can send it back to manufacturer/wholesaler. This is/was especially prevalent with media like magazines, CDs, games, books etc.
The stores had already paid for the magazines, books, etc. When they returned the physical media to the manufacturer, it was because the manufacturer accepts and destroys them or attempts to resale them to discount retailers. The manufacturer usually rebates the stores for the returns because they want the stores to keep buying from them, but this usually comes in the form of rebates/discounts on new inventory purchases, not as refunds on the returned products.
One is the liability is much clearer. At least in some jurisdictions, if the manufacturer can't be located to take responsibility for a defective product, the retailer can be sued instead. IIRC, Amazon weaseled out of some hoverboard product safety lawsuits by claiming it wasn't the actual retailer.
https://news.bloomberglaw.com/us-law-week/amazon-beats-state...
In this case, my hope would be that Amazon would shut down the 3rd party marketplace in favor of it's own retail business. Alternatively, it could explicitly wall them off from each other so there's a much clearer distinction and the marketplace could be more easily avoided unless explicitly desired.
I'm sure the integration is desired by many sellers [1], but my sympathies lie with shoppers, and Amazon Marketplace has made my buying experience worse.
[1] To give a slanted example: if I'm a seller trying to unload counterfeit or substandard goods, I want a trusted brand like Amazon's to hide behind. Even better if burred distinctions let me piggyback on any goodwill Amazon's first-party sales have created in shoppers.
What do you mean? Sellers can always sell on other marketplaces, like eBay, where it's clearer to the buyers what they're getting into.
If Amazon has too much power in the (retail) marketplace, the solution is to break it up, not give other sellers precarious access to its storefront via "Amazon Marketplace."
You'll note that I wasn't focusing on anti-competitive behavior at all. I personally don't like sites that commingle 1st party retail with a 3rd party marketplace, because I think they're a bad user experience.
Who would buyers go to? Amazon.com or the hypothetically amazonmarketplace.com?
Until Amazon Basic gives Amazon virtual “slotting fees” to have the best placements...