Canadian Politics Today

Wyze’s low prices are instead born of two ideas, both connected to Amazon. The company’s three founders all worked at the retail giant, and they said they had been inspired by Amazon’s high-volume, low-margin approach to sales.

To hit the $20 price, Wyze licensed the camera’s hardware from a Chinese company, then created its own software. It also cut out just about every middleman, including most retailers. And it’s banking on long-run success. While Wyze is just breaking even on its first camera, its founders believe internet-connected home devices will be a growth category. They plan to establish a trusted brand with the first camera, then release a succession of products that they hope to sell in large numbers, at low prices.

But how do you establish a brand online? That’s the second place Amazon comes in.

Though they snubbed every other retailer, Wyze’s founders recognized that they needed an Amazon storefront to help them establish an instant presence next to the big guys. Customer rankings and reviews on Amazon have become just about the most important factor in how consumers buy electronics products; because Amazon pages come up high on search results like Google’s, a positive rating on Amazon can effectively make a brand — and a negative rating can break one.

“That’s why we had to sell on Amazon,” said Yun Zhang, Wyze’s chief executive. “You just can’t ignore them.”

Wyze is now one of dozens of companies relying heavily on Amazon to create online brands. There’s Anker, which makes low-priced, well-regarded accessories for electronics. There’s Yi, which makes, among other things, action cameras that rival GoPro.