He admits, "It's very hard to get your brain around this if you're a retailer. It's like Circuit City opening a Best Buy kiosk in the middle of their store."
It's particularly bewildering when one realizes Amazon has also set up a model where it competes with itself.
"The big partners do the majority of the business," explains Sadowski. "And there are featured merchants. They're the ones you actually see on the product page. And Amazon may not have the lead offer. The number one criteria for the offer is in stock."