I dont think anyone's arguing against generic alternatives of name brand items. The issue here is Amazon using up-and-coming and popular products as fodder for them to generic-ize and push to the top of results, essentially knee capping the original seller.
All retailers do that. It's called private labels. None of the products are made by the retailer either. As unfortunate to those who might genuinely believe Trader Joes products are unique to them, or that Great Value was Walmart using its massive distribution systems to quickly scale core products like Milk out. It's all private labelling.
Amazon is not a traditional retails, it's a marketplace. Walmart buys stock, puts it on sale, gets data and makes decisions upon that. Amazon just skips the expensive first 2 steps by taking data from other retailers on their platform.
I think the algorithms make the difference here. You can't really make a cereal box stand out on a physical shelf in any unique way (or you can, but it'll be a cost expense. Ruining the point of undercutting). IME with online storefronts for traditional brick and mortar their own brands never seem to come on top.
Meanwhle I will almost always get an AmazonBasics if it exists as a first result.
Consumers like a lot of short term factors that turn against them in the long term. That seems to be the theme of the 21st century.
I'd rather these perverse incentives not exist and simply have a more educated consumer base learn to search "Amazon basics X" instead of maximizing conviniece to enable monopolies. We've clearly been shown that we can't handle the latter
I have no interest in becoming more educated about which seller from which factory run has what kind of quality standards. That’s why I use Costco and Target and Walmart and Amazon and Uniqlo and other brands to go out there and do that work. All I want to know is that I’ll be able to return something if it isn’t satisfactory.
Those original sellers mainly just look like drop-shippers to me. So Amazon just going straight to the source and selling at lower margin is better for me as a buyer.