Digital twist: A file picture shows Amazon boxes being stacked for delivery in the Manhattan borough of New York City. Rain Design’s experience shows how Amazon is using insights gleaned from its vast Web store to build a private-label juggernaut that now includes more than 3,000 products. – Reuters
RAIN Design has been selling an aluminum laptop stand on Amazon.com Inc for more than a decade. A best-seller in its category, the US$43 product has a five-star rating and 2,460 customer reviews.
In July, a similar stand appeared at about half the price. The brand: AmazonBasics. Since then, sales of the Rain Design original have slipped. “We don’t feel good about it,” says Harvey Tai, the company’s general manager. “But there’s nothing we can do because they didn’t violate the patent.”
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