Terms like this are not uncommon in vendor contracts generally, it is not specific to Amazon. It is often a point of negotiation and the details are specific to product categories. There are also common strategies for working around or minimizing the practical impact of these kinds of terms if you are the vendor. I've dealt with these kinds of terms for decades and I've never sold anything on Amazon.

A factor here is that many vendors on Amazon, even major household brands, are surprisingly unsophisticated about how they structure their business with Amazon. I know someone whose entire business is helping major brands structure their Amazon business correctly to get what they want out of that relationship. They are overwhelmed with new work from companies that you'd think would be competent to do this themselves.