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The two aren’t mutually exclusive at all. Sure, monopolies often have higher pricing but for something like Amazon where the barrier to entry is just a website,
by upbeat_general 6y ago
The two aren’t mutually exclusive at all. Sure, monopolies often have higher pricing but for something like Amazon where the barrier to entry is just a website, of course they need competitive pricing.
They’re able to offer that competitive pricing because of the enormous economies of scale, bargaining power, etc. that no one else has.
- rualca 6y ago> (...) but for something like Amazon where the barrier to entry is just a website, This comment is totally alienated from Amazon's business. Amazon is not a website. Amazon is a retail company, and their barrier to entry is their logistics infrastructure. You don't buy stuff from Amazon because you can click a button. You buy from Amazon because it can ship your order right to your front door in a matter of hours or days, and do it without any added cost, and even allows you to return everything for free no questions asked. Anyone can put up an website in a week, but no one can put up a high throughout low latency logistics network that allows for a turnaround time between click and doorstep as low as a few hours. In fact, Amazon's website is notoriously horrible in classification and search. I'd argue that Amazon dominates in spite of its website in general, and search and detail pages in particular.
- upbeat_general 6y agoIf you read my comment I think it’s clear that’s exactly what I was saying (albeit in less detail).