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Furthermore, Amazon sells some of my products themselves.
I think this may be a point where Amaz0n gets themselves into trouble and makes it hard to attract 3rd party sellers. Im not sure why they would even want to create 3rd party categories for items they carry themselves, unless they are only carrying those items to fill in the gap until enough sellers commit to their market.
Something I thought Id mention, that maybe not everyone realizes is that Amazon sellers have full control over pricing of product and shipping. Some of the comments in this thread made me think that there could be confusion about that.
Its not necessary to have the best price. There are no ppc expenses involved, so being listed as a higher dollar seller does no harm. It is really just another way to get your products listed and out there.
I bought my wife a jacket I found through an Amazon seller and have since returned to their store directly through their email links. It does work to build additional direct sales.