[jquaint]

I think its a matter of scale. Say Costco makes a Kirkland brand cereal, there are other stores that you can buy cereal at and there is competition. For a lot people, all online shopping comes from Amazon. Amazon uses this position to their advantage in many ways (high quality customer data, branding, etc.). This actually disincentives people from making compelling products because of the risk that Amazon will just steal the product.