In response to questions from U.S. lawmakers, Amazon said that while it does not use data on individual merchants’ sales, it looks at total sales within categories and search volume on its website to figure out which products are high in demand.
Amazon said in a letter that such practices are not uncommon among retailers that offer their own private label products. The company added that its private label sales only account for about 1% of Amazon’s total sales. Amazon also said certain data on sales rankings of its products are public.
It’s worth highlighting Amazon’s defense on the topic of its private label sales because regulators in Europe are looking into whether Amazon uses data about its sellers to undermine competition.