[Qwertious]

"Other sales channels" being Amazon's competitors - suppose you sell a... cup that costs $1 to produce, and you sell it on Amazon and Bmazon. Amazon charges $2 in fees, and Bmazon charges $0.50 in fees.

In this hypothetical example with demonstration numbers for effect, you could sell your cup for a minimum of $1.50 on Bmazon and $3 on Amazon - everything above that is pure profit. In such a scenario, you would obviously much prefer selling at $2.50 on Bmazon over selling for $3.50 on Amazon, since you make 2x the profit, and the average customer would much prefer to buy the device at a ~30% discount! Unless the customer legitimately derives an extra $1 worth of value from using Amazon instead of Bmazon, in which case Amazon gets the sale anyway.

But, if 90% of your sales are on Amazon, then you can't offer this deal that both you and the customer are legitimately incentivized to do, because you'd lose 80% of your revenue.

In such a scenario, Amazon has no competitive incentive to reduce their fees! It suppresses market signals towards lower-overhead sales platforms, i.e. you have no way to signal to your customers that a sale on Bmazon benefits you twice as much as on Amazon.

Basically, Amazon is trying to abuse a network-effect instead of actually competing with their competition. They're deplatforming anyone who doesn't voluntarily price-fix for them. It's insane.