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>1) The day Amazon feel threatened they can become the cheapest in the market quickly again. Can they? They aren't the ones selling those products, individual

>1) The day Amazon feel threatened they can become the cheapest in the market quickly again. Can they? They aren't the ones selling those products, individual companies set their own prices - and they have to pay a cut to Amazon. Even if that cut goes to 0 (making Amazon lose lots of money), that only puts them at barely better than the rest of the market. Walmart sets its own prices. >2) Given purchasing power scale and people like fast delivery there will only be a handful of companies that can complete with Amazon ever, so it seems unlikely there will be a 'started in the garage' business compete with them now the market is maturing. I think this has been proven wrong time and again. There's always a way into the market. >3) With the extra profit Amazon are making vs a competitors they can develop and buy technologies or business to keep a moat around them for a long time. Just the same way every other company has maintained an iron grip on every market it's in...? History repeats itself, companies rise and fall, and they gain and lose market share even when they have an endless supply of money. The most important part of running a business like Amazon is consumer trust - and Amazon is playing a losing game right now.

hrktb 8y ago
They have a pretty aggressive policy of repricing in some markets. For instance in e-books, the most extreme cases, Amazon can straight give away a series' first volume to recoup on the sales on the following purchases. If I remember well in some cases the author or editor has no say on it and Amazon pays for the price difference. I wouldn't be surprised if they can do the same on other retail goods as long as they pay for it.
- Kye 8y ago
  I knew Google did this with ebooks, but this is the first I've heard about Amazon doing it.
- agret 8y ago
  Considering most eBooks with the free first book are like $0.99-$3 a book after you take out Amazons normal profit cut for the book they probably aren't really paying that much for the free book anyway so it makes it worth their while to do it this way.
patrickxie 8y ago
1) Amazon can lower fees easily, that's a 10 ~ 20% profit margin, which invites more competitors and thus lower prices.
cliffordthedog 8y ago
> History repeats itself, companies rise and fall Except the tech companies are massive conglomerates which will insulate themselves by delving into every industry they can. They are also approaching too big to fail status.
ergothus 8y ago
> I think this has been proven wrong time and again. There's always a way into the market. Has it? I have the impression that monopolies are often toppled only when the market CHANGES, and that's usually not the action of a competitor. Saying "wait long enough and you can compete on different turf" doesn't feel like competition, nor a win for consumers in the meantime.

hrktb 8y ago

They have a pretty aggressive policy of repricing in some markets. For instance in e-books, the most extreme cases, Amazon can straight give away a series' first volume to recoup on the sales on the following purchases. If I remember well in some cases the author or editor has no say on it and Amazon pays for the price difference. I wouldn't be surprised if they can do the same on other retail goods as long as they pay for it.

Kye 8y ago
I knew Google did this with ebooks, but this is the first I've heard about Amazon doing it.
agret 8y ago
Considering most eBooks with the free first book are like $0.99-$3 a book after you take out Amazons normal profit cut for the book they probably aren't really paying that much for the free book anyway so it makes it worth their while to do it this way.

patrickxie 8y ago

1) Amazon can lower fees easily, that's a 10 ~ 20% profit margin, which invites more competitors and thus lower prices.

cliffordthedog 8y ago

> History repeats itself, companies rise and fall Except the tech companies are massive conglomerates which will insulate themselves by delving into every industry they can. They are also approaching too big to fail status.

ergothus 8y ago

> I think this has been proven wrong time and again. There's always a way into the market. Has it? I have the impression that monopolies are often toppled only when the market CHANGES, and that's usually not the action of a competitor. Saying "wait long enough and you can compete on different turf" doesn't feel like competition, nor a win for consumers in the meantime.