If Amazon and other platforms are held liable for third-party products sold on their marketplaces, it would damage the business model's viability:
These listings, many of which were changed or taken down after The WSJ alerted Amazon of them, included categories like toys and medications where unsafe products can be particularly dangerous. Nearly half of the products were said to be shipped from Amazon warehouses, and some had even earned the"Amazon's Choice" badge.
Here's what it means: Third-party sellers are the driving force behind Amazon's retail business, but if it's unable to effectively moderate their listings, it could damage Amazon's reputation.for 58% of physical gross merchandise sales on Amazon in 2018.
But if the safety and legitimacy of products on Amazon comes into question, the value of its network of third-party sellers could be greatly diminished. If consumers aren't confident in the quality and safety of products they find on Amazon, they may choose to start shopping elsewhere.
The bigger picture: If Amazon and other marketplaces begin to be held liable for products sold on their marketplaces by third parties, it would damage the business model's viability.in the US could mean that Amazon is liable for defective purchases made on its marketplace, which might lead to a number of suits against Amazon and it having to regulate its platform more heavily.
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