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I think this raises an interesting point, the raison d'etre for Walmart is providing value to customers above all other metrics, low prices, wide, but not infin
by Aloha 8y ago
I think this raises an interesting point, the raison d'etre for Walmart is providing value to customers above all other metrics, low prices, wide, but not infinite selection, and a modicum of convenience.
Conversely raison d'etre for Amazon is convenience, you can get anything, order it at any time, and have it within a couple days - it may not be the lowest price, or the best value you can buy - but it will end up being your first choice because of the low friction interactions Amazon offers.
As soon as interactions with Amazon start to exceed the combined convenience/value metric offered by other outlets, business will move to those other outlets - particularly more so for those with disposable income (particularly notable with the issue of counterfeit of fraudulent items).
As a note, while I don't fully disagree Walmart is one of the 'most successful social welfare institutions ever implemented' - I would never frame it in that context, because Walmart pushes the costs for the value it creates externally - in essence Walmart is subsidized indirectly by the state and its various welfare organs, it passes much of that subsidy back onto its customers - but like any indirect subsidy, its highly a highly inefficient way of going about this, and creates all sorts of undesired effects at the same time - for example, it undermines the whole point of many of the social welfare programs it benefits from thru indirect subsidy.
- skookumchuck 8y agoEven though I don't save money on Amazon's prices, I save substantially by shopping at Amazon: 1. don't pay for gas and car wear&tear going to the store. (Amazon aggregates all this by driving one truck replacing 30-40 car trips.) 2. spend 5 minutes of my time buying rather than a couple hours going to the mall 3. I have access to the used market on Amazon, meaning I pay a LOT less for many items like books
- deleted 8y ago[deleted]
- petra 8y agoIsn't having a bigger selection, plus better tools to select(reviews, other content), means Amazon lets me choose a product that is a better fit, with higher certainty - so it's more valuable ? And if(a big if) i come out of Amazon with a feeling that i got better value for money, isn't this pretty similar to winning on price ? Fake reviews, etc . But many customers are naive.