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Amazon might be wise to consider the effects of outsourcing, the ones now being realized by western tech and manufacturing companies. Eventually they realize t
by ninth_ant 8y ago
Amazon might be wise to consider the effects of outsourcing, the ones now being realized by western tech and manufacturing companies.
Eventually they realize they can cut you out of the picture and do it themselves. If Amazon trains big conglomerates such as Unilever and Coke to ship direct to consumers, that makes it easier for those conglomerates to just start doing that themselves and/or with other retailers.
- mattzito 8y agoI would argue the difference is that the products that unilever and coke make are already relatively low margin, low price variability products, such that there’s not a lot of opportunity for them to undercut amazon. Similarly if I have to go to coke.com to buy coke for a 2% savings vs just buying it from wherever I’m buying other stuff from, it’s not worth it to me. Electronics manufacturers are dealing with much higher ticket items, where consumer price expectations are highly variable, and are comparatively infrequent purchases. It’s a totally different ball game.