5 ms·
This is likely a net good for the consumer, since it nominally lowers costs, increases reliability, and reduces time to delivery. However, there is an antitrust
by contingencies 6y ago
This is likely a net good for the consumer, since it nominally lowers costs, increases reliability, and reduces time to delivery. However, there is an antitrust risk of monopolization. It's a case in which Amazon, the producer and the consumer have aligned interests, until Amazon turns around and screws everyone who have become dependent. Undercapitalized niche middle men still running on ancient oasis merchant middle man business models are the immediate losers. Bezos, the Genghis Khan of the internet, famously states Your margin is my opportunity. If you are an importer I'd recommend obtaining both exclusivity and patents or running scared.
- AlexTWithBeard 6y agoGood for US consumers, bad for US manufacturers.
- elefanten 6y agoNot when the goods are all cheap junk that breaks in 1/10th of the expected lifespan or poisons you.
- Aperocky 6y agoThere are no US manufacturers for most of the stuff on Amazon though. Cheaper consumer good manufacturing in the US is gone for good.
- tfehring 6y agoBad for US resellers and drop shippers. But I can't see it having much impact on US-manufactured goods.
- mensetmanusman 6y agoBad for the environment though, there is cost arbitrage happening due to lack of regulation
- dcolkitt 6y ago> It's a case in which Amazon, the producer and the consumer have aligned interests, until Amazon turns around and screws everyone who have become dependent. Has Amazon ever shown any indication of raising prices after monopolizing a market? As far as I can tell, the more they dominate a market the lower their prices. Amazon does seem interested in monopolization, but mostly for the ability to squeeze suppliers into even tighter pricing- not turning around on consumers. Moreover, similar arguments were made for years about Wal-Mart and never materialized. Increasing market share seemed to go hand-and-hand with "Everyday Low Prices". Who knows. Maybe it really is their secret strategy. One day the shoe will drop, and Amazon will start bleeding consumers in the markets they've grown to dominate. Somehow I doubt it though, and so far their behavior gives zero indication of it.
- contingencies 6y agoYeah, the market apparently supports them never making a profit so they have no incentive to squeeze people off the train. However, they do need a margin somewhere, and buying planes aint free.