Amazon Operated Shell Company Gathered Intel On Rivals, Including Flipkart, Walmart: Report (image-pixabay/Rubaitul Azad)
A recent exclusive report by the Wall Street Journal (WSJ) has unveiled Amazon’s covert operation through a shell company named Big River Services International, aimed at gathering intelligence on its competitors such as Walmart, eBay, FedEx, and even Flipkart in India.
The project, initially dubbed “Project Curiosity” within Amazon, involved employees posing as sellers on various platforms to glean exclusive information and relay it back to Amazon for strategic advantage, reports Moneycontrol.
The primary focus of “Project Curiosity” was to monitor US-based competitors, but it extended its reach to Flipkart in India, particularly due to Walmart’s acquisition of Flipkart in 2018. The undercover employees of Big River Services International operated with non-Amazon IDs to avoid detection, managing multiple brands listed as ordinary sellers on various platforms.
The report highlights that such competitive intelligence efforts are not uncommon in the industry, with companies often benchmarking and researching competitors to refine their strategies and offerings. An Amazon spokesperson defended these practices as standard business operations, emphasising the importance of improving customer experiences and seller interactions, according to Moneycontrol.
One of the key strategies employed by Big River Services International was to gain early insights into competitors’ initiatives and plans. For instance, by participating in FedEx’s Fulfillment program, launched in 2017, as an early customer, the team received information about pricing, rate cards, and other terms, providing Amazon with a competitive edge.
Despite projections of minimal revenue compared to costs, the motive behind Amazon’s initiative is strategic rather than financial. The company aimed to stay ahead of competitors by anticipating their moves and adjusting its strategies accordingly, highlighted the report.
Based on the WSJ report, Amazon’s leadership instructed the Big River Services International team to maintain secrecy and, if exposed, to present themselves as a group focused on enhancing the seller experience on Amazon. The project was eventually renamed “Small Business Insights Team” to align with its purpose of improving interactions with selling partners.
The developments came amidst both Amazon and Flipkart vying to get a bigger piece of India’s e-commerce landscape. According to analysts at Bernstein, Flipkart leads in India despite Amazon’s investment of over $6.5 billion, stated Moneycontrol.
