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One thing I've been thinking about: Amazon (and Google) have essentially taken the old CPG paradigm of stock shelves (including visibility and monetization of t
by oflannabhra 8y ago
One thing I've been thinking about: Amazon (and Google) have essentially taken the old CPG paradigm of stock shelves (including visibility and monetization of that physical space) and turned it into a new paradigm: Infinite shelf space that dynamically changes based on customer inputs.
Across one axis, this is better for the consumer and better for Amazon: customers get better results, and Amazon can charge for the (still limited) high priority space much more than a typical retailer could charge a CPG manufacturer for visibility.
Across another axis, this is much worse for Amazon: they cede a significant amount of control over a highly valuable asset, which also greatly impacts customer experience. All of the inputs they build their system on can be faked or gamed, and now they have the added responsibility of distinguishing real vs fake, and managing those inputs.
I don't really have any answers, but I think it is an interesting thought exercise to consider how the old paradigm had some advantages, even if those advantages are likely unable to scale.