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I'd argue consumers are benefiting greatly from Amazon's profits. They have overall re-invested those profits into other businesses that benefit consumers. Ex
by aeternus 7y ago
I'd argue consumers are benefiting greatly from Amazon's profits. They have overall re-invested those profits into other businesses that benefit consumers.
Ex: Purchased Whole Foods and have brought down those prices overall plus building Amazon Go stores which offer a much better consumer experience than traditional grocery. Amazon's Web Services platform has leveled the playing field and enabled many startups. Amazon has pressured almost all other retailers online & offline to offer free or cheap delivery which is great for consumers. Walmart would likely never have done this without pressure from Amazon.
- rootusrootus 7y agoBenefiting now perhaps, but isn't the point that in the long run customers will be worse off because of what Amazon is doing?
- aeternus 7y agoMaybe, but Amazon faces competition from Ebay, Alibaba, even Walmart. It's unlikely they can raise prices significantly and maintain market share, nor is it likely that they can push out all of those competitors.
- gowld 7y agoFree delivery isn't free; it's just amortized baked into the price. The real savings come from logistics like getting one shipment from the Everything Store instead of 5 separate shipments.