1 00:00:00,000 --> 00:00:07,020 THWEI. TNNZEET. BUXKR. Just some of the reliable\h Amazon brands that make it possible to get pants\h\h 2 00:00:07,020 --> 00:00:12,060 delivered to you with the urgency of a new kidney.\h But did it ever occur to you that when browsing\h\h 3 00:00:12,060 --> 00:00:17,340 Amazon, you don’t actually recognize, like, 90%\h of the brands on there anymore? I mean, sure,\h\h 4 00:00:17,340 --> 00:00:21,300 they’ve got the big names if you look for them,\h but why are most results these companies that\h\h 5 00:00:21,300 --> 00:00:27,240 you’ve never heard of? What is BUXKR? Who runs\h BUXKR? Do they sit at a desk in a big building\h\h 6 00:00:27,240 --> 00:00:31,980 with the word BUXKR on it? Are kids these days\h getting bullied for not having the latest BUXKR\h\h 7 00:00:31,980 --> 00:00:36,600 merch? Are you just out of touch, or is there\h something more here? Well, if you’re watching\h\h 8 00:00:36,600 --> 00:00:41,340 this channel you probably are out of touch, but\h there is also something more here. These brands\h\h 9 00:00:41,340 --> 00:00:45,900 don’t really exist outside of Amazon—if you look\h them up, you’re not going to find storefronts,\h\h 10 00:00:45,900 --> 00:00:51,120 or websites, or big buildings with their names on\h them. These brands—or pseudo-brands—are actually\h\h 11 00:00:51,120 --> 00:00:56,460 part of a very tricky e-commerce scheme that takes\h advantage of the way Amazon functions these days,\h\h 12 00:00:56,460 --> 00:01:00,360 and they’re not just gunking up your online\h shopping feed: they’ve also nearly destroyed\h\h 13 00:01:00,900 --> 00:01:07,320 the US Patent and Trademark Office in the process. So, how did Amazon get so overrun with PVENDORs,\h\h 14 00:01:07,320 --> 00:01:12,660 YUIOPs, and JOYOLDELFs in the first place? Well,\h that’s kind of a long story. When Amazon first\h\h 15 00:01:12,660 --> 00:01:16,680 started, the way it distributed products\h was pretty simple. You’d order a book on\h\h 16 00:01:16,680 --> 00:01:21,000 Amazon—which was the only type of thing you could\h order on Amazon back then—and then Amazon would\h\h 17 00:01:21,000 --> 00:01:25,380 turn around and buy that book directly from a\h larger book distributor or wholesaler and send\h\h 18 00:01:25,380 --> 00:01:29,520 it to you. One of the few reasons that this was\h remotely sustainable was that these wholesalers\h\h 19 00:01:29,520 --> 00:01:34,140 kept prices down by requiring Amazon to buy in\h bulk, so Jeff Bezos would scam them by buying\h\h 20 00:01:34,140 --> 00:01:37,560 one copy of the book he needed and then he’d\h fill out the rest of the order with a whole\h\h 21 00:01:37,560 --> 00:01:41,760 bunch of copies of an unnamed obscure book about\h lichen that none of them ever had in stock, all\h\h 22 00:01:41,760 --> 00:01:46,500 of which would then immediately get refunded. But\h Jeff aspired to greater things than scamming book\h\h 23 00:01:46,500 --> 00:01:52,560 wholesalers—he wanted to be the buffest, baldest,\h richest man the world had ever seen, so in 1998,\h\h 24 00:01:52,560 --> 00:01:56,820 Amazon started selling other stuff. And sure\h enough, they were pretty good at that too,\h\h 25 00:01:56,820 --> 00:02:01,200 so a few years later, Jeff had the wise idea\h of letting other people sell stuff on Amazon\h\h 26 00:02:01,200 --> 00:02:06,780 using Amazon’s infrastructure: this is where\h things get complicated. Some items on Amazon\h\h 27 00:02:06,780 --> 00:02:10,680 work the old-fashioned way: they’re owned\h by Amazon, stored in Amazon warehouses,\h\h 28 00:02:10,680 --> 00:02:15,960 and shipped by Amazon. Other items are almost\h completely disconnected from Amazon’s supply\h\h 29 00:02:15,960 --> 00:02:20,520 chain: they’re owned by other companies, stored\h off-site, and shipped by someone else—you just\h\h 30 00:02:20,520 --> 00:02:25,440 purchase them through Amazon’s website, but that’s\h about it. And then some items are in between:\h\h 31 00:02:25,440 --> 00:02:30,060 they might be owned by other companies, but\h stored or shipped by Amazon. And this system\h\h 32 00:02:30,060 --> 00:02:34,200 has worked pretty well, because it means that\h Amazon doesn’t actually have to buy and house all\h\h 33 00:02:34,740 --> 00:02:38,580 40,000 different funny hats that come up when you\h search “funny hat” on their website. But it also\h\h 34 00:02:38,580 --> 00:02:43,920 comes with certain risks, because accurately\h vetting 350 million different products is about as\h\h 35 00:02:43,920 --> 00:02:49,440 hard as accurately vetting 350 million different\h products sounds. Amazon has frequently gotten in\h\h 36 00:02:49,440 --> 00:02:53,580 trouble for selling hair dryers that kill you if\h exposed to water, children’s pajamas that have the\h\h 37 00:02:53,580 --> 00:02:57,960 unfortunate tendency to catch on fire, and carbon\h monoxide detectors that are purely decorative.\h 38 00:02:57,960 --> 00:03:03,540 So, in 2015, Amazon came up with a plan to stop\h accidentally lighting children on fire: Amazon\h\h 39 00:03:03,540 --> 00:03:08,700 Brand Registry. The idea was that if you wanted\h to be a third-party seller on Amazon and have\h\h 40 00:03:08,700 --> 00:03:12,360 your products actually get pushed in the search\h engine, you had to enroll in this new system,\h\h 41 00:03:12,360 --> 00:03:17,400 but enrolling in this new system required having a\h registered trademark on a brand name. What Amazon\h\h 42 00:03:17,400 --> 00:03:21,660 hoped would happen is that the US Patent and\h Trademark Office would be able to sift out the\h\h 43 00:03:21,660 --> 00:03:26,700 extra-flammable pajamas before they actually hit\h the market. What actually happened is that the US\h\h 44 00:03:26,700 --> 00:03:31,440 Patent and Trademark Office was almost destroyed. So, it turns out, it’s not actually that hard to\h\h 45 00:03:31,440 --> 00:03:34,620 trademark a brand name as long as that\h brand name totally sucks. If you’re\h\h 46 00:03:34,620 --> 00:03:38,820 trying to trademark a name that’s coherent and\h uses real English words, like, I don’t know,\h\h 47 00:03:38,820 --> 00:03:42,480 Skateboard Cream—don’t try to steal that by\h the way, it’s my idea—the process will take\h\h 48 00:03:42,480 --> 00:03:47,820 a fairly long time because the USPTO has a lot of\h work to do in order to prove its distinctiveness.\h\h 49 00:03:47,820 --> 00:03:52,380 But if you file to trademark a meaningless\h string of letters, like RLENOIUML or VOX,\h\h 50 00:03:52,380 --> 00:03:58,260 chances are, there won’t be any competition and\h it’ll go right through. So, all of a sudden, the\h\h 51 00:03:58,260 --> 00:04:02,700 most efficient way to get your product listed on\h Amazon—assuming you’re not already a recognizable\h\h 52 00:04:02,700 --> 00:04:08,160 company—is to file, in the United States, for the\h worst trademark you can think of. And sure enough,\h\h 53 00:04:08,160 --> 00:04:12,480 the US Patent and Trademark Office wasn’t too\h happy about this, because they were now knee-deep\h\h 54 00:04:12,480 --> 00:04:16,920 in applications that were designed to be as lazy\h as possible. They had to bring it to congress,\h\h 55 00:04:16,920 --> 00:04:22,260 it was a whole thing, and seemingly it’s\h still a really big problem, but, uh… whatever.\h 56 00:04:22,260 --> 00:04:26,820 A much more interesting question remains: how\h do these products actually compete when their\h\h 57 00:04:26,820 --> 00:04:32,940 brands are so intentionally bad? Well, the answer,\h apparently, is that you don’t care. For the most\h\h 58 00:04:32,940 --> 00:04:37,500 part, these third-party sellers target product\h categories with very little brand loyalty; stuff\h\h 59 00:04:37,500 --> 00:04:42,000 that you kind of just need quickly and cheaply:\h HDMI cables, measuring cups, dog wigs, things\h\h 60 00:04:42,000 --> 00:04:46,680 like that. Obviously, you don’t want to buy a\h HMBGSFD pacemaker, but a HMBGSFD ice cream scoop?\h\h 61 00:04:46,680 --> 00:04:50,700 Why not. And that’s not to mention the fact that\h most of these brands have pretty much nothing to\h\h 62 00:04:50,700 --> 00:04:55,020 lose, so they can just buy reviews and clickfarm\h until they get banned and have to undergo the\h\h 63 00:04:55,020 --> 00:04:59,520 arduous process of thinking up another string of\h meaningless letters to trademark. The lesson is:\h\h 64 00:04:59,520 --> 00:05:04,500 the path to riches is laziness, at least if\h you’re trying to sell ice cream scoops on Amazon.\h 65 00:05:06,000 --> 00:05:10,320 In an age where the internet is absolutely overrun\h with garbage products, let me tell you about a\h\h 66 00:05:10,320 --> 00:05:15,780 product that I know for certain is not-so-garbage:\h Nebula. Now I might be a little biased here—I\h\h 67 00:05:15,780 --> 00:05:19,080 helped start Nebula four years ago with some of\h my creator friends, but the concept was simple:\h\h 68 00:05:19,080 --> 00:05:24,120 creators know how to make good content on a\h budget. Therefore, it tracks that if you give them\h\h 69 00:05:24,120 --> 00:05:29,760 a little more budget, they can make great content.\h We did exactly that, and now have a huge catalog\h\h 70 00:05:29,760 --> 00:05:34,500 of absolutely incredible Nebula Originals. For\h example: you know Real Life Lore? He has a series\h\h 71 00:05:34,500 --> 00:05:39,720 called Modern Conflicts which is just as good as\h his videos on YouTube. LegalEagle? He made a class\h\h 72 00:05:39,720 --> 00:05:44,580 teaching you how to sue people. PhilosophyTube?\h She filmed her off-West End play called the\h\h 73 00:05:44,580 --> 00:05:49,680 Prince. Real Engineering? He made a phenomenal\h series called the Logistics of D-Day. Mustard,\h\h 74 00:05:49,680 --> 00:05:54,480 Neo, CityBeautiful, Polymatter, TierZoo—I couldn’t\h possibly name all the creators that have made\h\h 75 00:05:54,480 --> 00:05:59,340 Nebula Originals, but it’s a lot, and plenty\h that the average HAI viewer watches and enjoys:\h\h 76 00:05:59,340 --> 00:06:04,260 we actually know that for sure based on our\h audience crossover analytics. Oh, and we’ve made\h\h 77 00:06:04,260 --> 00:06:08,760 Originals too of course, but on top of Originals,\h the creators all upload their content early and\h\h 78 00:06:08,760 --> 00:06:13,680 ad-free on the platform, meaning it’s all in all\h just a better viewing experience for you. Over\h\h 79 00:06:13,680 --> 00:06:18,240 650,000 people are subscribed to Nebula already,\h and we know they find it worthwhile because\h\h 80 00:06:18,240 --> 00:06:22,800 we have one of the lowest subscriber churn and\h highest monthly active user counts in streaming:\h\h 81 00:06:22,800 --> 00:06:27,660 the analytics prove that people are signing\h up and actually using and enjoying Nebula. And\h\h 82 00:06:27,660 --> 00:06:31,920 to top it all off, Nebula is creator-founded\h and creator-owned: we at Half as Interesting\h\h 83 00:06:31,920 --> 00:06:36,300 actually get a cut of your subscription fee for\h as long as you stay subscribed, as long as you\h\h 84 00:06:36,300 --> 00:06:42,480 sign up at Nebula.tv/HAI. Also by using that link\h you’ll get 40% off an annual plan, so it’s worth\h\h 85 00:06:42,480 --> 00:06:47,940 it for both of us—head to Nebula.tv/HAI,\h and thanks in advance for your support.