Yes Walmart is the textbook example of a monopsonist being able to extract steady profits while creating a race-to-the-bottom for prices among their suppliers. Great for end customers, but harmful nonetheless.
I don't agree Walmart would make for a textbook example. I'd argue they were/are not even a monopsonist with regard to their suppliers. They might be a strong regional force but they have failed (or chosen) to move out of their regional power position. That's not a bad thing and in fact is a strength. I'm pretty sure they were cited as an example of good strategy for exactly that in "Competition Demistified" but don't have the book with me right now.
However, in the day and age of modern logistics I'd argue that their suppliers could have sold to other customers in other states.
Ultimately I suppose it depends on how we define a market (ultra regional or wider) and how high the transaction costs (+other extra costs) of the suppliers would be to move to another customer. The classical example in "The Economics of Imperfect Competition" was the labor force in a small town (mining iirc., once again not at my bookshelf). I suppose that would give precedent to the fact that small markets "count". However most studies on the topic I am aware of are about labor not supply/demand structures. And I'd argue it is "easier" for a supplier to move their wares to another customer than for a (specialized) worker to move to another company (uproot family etc.).
Additionally some of the suppliers of Walmart are in pretty strong negotiating positions themselves (Unilever etc.).
At least there's enough doubt in my mind to say Walmart's supplier relations are "a textbook example of a monopsonist".
They aren't quite a monopsonist, but the difference for most companies is academic.
You've never sold to walmart, I have. If they put your physical product on the shelf you'll sell a lot of units. No one else has the shelves walmart does. If you are not on the walmart shelf there is NO way to get the same number of units sold.
but they're often low because they're selling bottom barrel quality goods (like electronics with cheap capacitors that fail quickly or clothes with lower quality fabrics & sewing that don't last). Even products that look the same as other stores will commonly have a Walmart specific SKU that uses cheaper components.
Sadly, this is what customers want. When given the option of a 30$ belt that lasts for life or a 5$ belt that lasts one year, many will go for the latter, and this is who Walmart caters to.
Arbitration is done by a company picked by Amazon, paid by Amazon, hoping to remain in business with Amazon, deciding about a conflict between Amazon and a random customer. In whose direction are they likely to err?
Who exactly is that company? One of the first steps in arbitration is for both parties to agree on a choice of arbiter. Looking at Amazon's webpage it names the American Arbitration Association which appears to be a pretty big non-profit. Step two in their road map here includes the arbiter choice step:
https://www.adr.org/sites/default/files/document_repository/...
If amazon is just insisting on "their guy" then I would think that should be pointed out in much bigger letters. From Amazon's perspective I can see lots of incentives: faster, cheaper, no appeals, no class-actions, probably no giant punitive judgements. But they may not have any better chance of actually winning them.
I can't comment on the arbitration clauses that Amazon uses, but the arbitration clauses I've seen usually says the arbitrator is randomly assigned by the american arbitration association.
This is a late reply, but there are a couple big differences. The courts could create a class action, or join multiple claims. Avoiding a class action, where the individual claims are too expensive to be worth pursuing, but as a whole the wrongdoing is significant is one of the biggest driving forces in mandatory arbitration. But these don't apply to the linked case.
Discovery is more limited with arbitration, third party discovery is very limited, usually use witness statements instead of depositions. Arbitration almost never forms precedent, and arbitrators are not bound by case law/precedent. Decisions made by an arbitrator can only be appealed under more limited circumstances than if made by a judge. This means it is less likely a decision will be made based on the existing law. A court can grant interim relief, generally an arbitrator can not. A court will sanction parties that act in bad faith, in practice an arbitrator will not. A court judgement/sanction/relief can be enforceable in a way that an arbitrators finding would not be. This adds up to in practice making a successful claim more difficult for a wronged consumer
Arbitration is generally cheaper, limited discovery is cheaper. Not being limited to the same evidentiary rules and to respecting precedent allows the arbitrator to make more equitable decisions, that conflict with the law. Arbitration is faster.
We have a judicial system to deal with issues like this which generally handles things fairly regardless of the size of each party.