Amazon’s flywheel: Amazon's relentless expansion aims to offer shoppers the most diverse selection possible. Whether it's enticing brands that hesitate to sell directly on the platform or persuading premium brands to join, Amazon is focused on increasing its product offerings. Clarkson explains, "Part of the Amazon flywheel’s power comes from increasing selection. If you want something, you should be able to come to Amazon and buy it."

An advertising advantage: However, too much selection can sometimes overwhelm consumers. While that might create challenges for shoppers trying to find the best product, it benefits Amazon in other ways. "More selection means more opportunity for advertising revenue," Clarkson points out. Amazon’s advertising division has long been more profitable than its marketplace, capitalizing on the vast amount of data it gathers on consumer behavior.

Knowledge is power: As tariffs unfold, where goods are sourced from will likely change, causing ripple effects on both the merchant and platform sides. Data is where Amazon's power truly lies. By tracking what consumers are searching for and which brands lead in specific categories, Amazon gains valuable insights. Clarkson highlights that this enables Amazon to refine its own offerings. "If Amazon doesn't have a particular brand or product that consumers are looking for, it can use this data to inform its private label business," he explains. "Amazon Basics, for instance, is an enormous business, generating over $200 million in GMV every month. By understanding which brands consumers are moving away from Amazon to engage with, Amazon can adjust its own offerings to better compete."