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This is what happens when regulators don't promote a fair marketplace. With no competition, companies like Amazon stop caring and start to optimize to get the
by Accujack 7y ago
This is what happens when regulators don't promote a fair marketplace. With no competition, companies like Amazon stop caring and start to optimize to get the last few pennies out of each sale... which results in a drop in quality of the overall service and eventually either a long, slow death or a corporate sale.
Because Amazon has out priced or out delivered many local stores, we don't have those choices any more.
There's a place for companies like this, but they have so many advantages due to size that they have to be watched to ensure they don't step on smaller players just because they can.
- hirako2000 7y agoCould actually be a major factor yes. Surely contributing. I'm still unsure Amazon was ever profitable without the new practices, being a private company makes it even more difficult to figure that out.
- lonelappde 7y agoAmazon is a public company.
- acdha 7y agoAmazon has been profitable since the 90s, which is also when they went public (1997). This would be useful: https://en.wikipedia.org/wiki/History_of_Amazon https://en.wikipedia.org/wiki/History_of_Amazon The key thing to remember is that they expanded aggressively. People who didn’t do their homework - like most pundits and media stock analyst/entertainers - would dismiss them as another unprofitable .com without recognizing that they were becoming profitable in each new market a few years after entry and could halt expansion if they had a cash squeeze. The other point was being comfortable with low margins: that disappointed people who wanted a rapidly climbing stock price but that wasn’t the company they were trying to build and they’ve left quite a few once-hot companies in the rubble.
- abfan1127 7y agoyou just described how the market is correcting. Regulators would just get in the way of the correction.
- kyanne 7y agoRegulators would ensure there would be nothing to correct
- abfan1127 7y agoummm. I'll disagree with you on that point. Regulators don't have the clairvoyance to know the market needs. They do have their own self interests and politics of their organizations to inhibit reaching market needs...
- 9HZZRfNlpR 7y agoIt corrects itself to next abusing monopoly since everyone is priced out from the market.
- lonelappde 7y agoYour complaint that every bad monopoly is replaced by a better monopoly with lower prices?
- sigstoat 7y ago> With no competition, companies like Amazon amazon has only got ~5% of the US retail market. this ongoing meme that they've got no competition is surreal.
- Accujack 7y agoName another online retailer that's bigger/better known. You can't compare them to the entire retail market. If anything, their competition is Wal-Mart's online service, or Ebay.
- sigstoat 7y ago> You can't compare them to the entire retail market. sure i can. i do every time i buy something at my grocery store, or local retailers, that i could've gotten from amazon.
- dsl 7y ago> Name another online retailer that's bigger/better known. You literally named two. My father knows how to do only two things on his computer - check his email, and buy stuff on eBay. There is a "Walmart.com" desk and in-store signage in 5,000+ physical stores.
- laughinghan 7y ago> You literally named two. Neither of those are bigger, in fact they're dramatically smaller, Amazon has 49.1% of the online retail market to eBay's 6.6% and Walmart's 3.7%, according to: https://techcrunch.com/2018/07/13/amazons-share-of-the-us-e-commerce-market-is-now-49-or-5-of-all-retail-spend/ https://techcrunch.com/2018/07/13/amazons-share-of-the-us-e-...
- sharkmerry 7y agoAll retail includes B+M stores no? Not necessarily a fair comparison. Same article says they control 49% of US E-commerce. https://techcrunch.com/2018/07/13/amazons-share-of-the-us-e-commerce-market-is-now-49-or-5-of-all-retail-spend/ https://techcrunch.com/2018/07/13/amazons-share-of-the-us-e-...