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They're not just a renewable resource, the most successful ones represent opportunity. If this guy is selling over $1 mil per month, Amazon has every incentive and resource to assume those sales themselves. One way is to make it as hard as possible on those sellers, without taking the PR hit from the transparency of shutting them down and selling the same products.

If you don't think Amazon thinks that way, ask yourself why it takes so many clicks to unsubscribe from Prime, but only one click to buy whatever you want. Amazon is waging a war of attrition against its top sellers, and Amazon is winning.