4 ms·

In order to sell on those platforms companies should have to place $5 million in escrow and Amazon promises to test at random a certain percentage of your prod

by 14 4y ago

In order to sell on those platforms companies should have to place $5 million in escrow and Amazon promises to test at random a certain percentage of your products and if failed you lose your money. I laughed at a client when he told me he bought a 1TB hard drive off of Wish. I told him well good luck with that hope you didn't just get scammed. Saw him a week later and he told me the drive wouldn't work on his new PS5. I told him I would bet him the cost of the drive it was a fake and probably couldn't hold even half of what it is reporting and told him to use the tools to see it's actual size. He didn't take the bet so I will never be sure but no way in hell I would be a $25 storage from Wish.

silvestrov 4y ago
> $5 million in escrow Nestle have no problem putting up $5M, but most good small companies just can't. So the end effect is that you enable big monopolies. You need to invent some kind of reputation system. Small towns (and communities) have this builtin as everybody knows almost everybody. Amazon is missing the ability to say "this is a new seller without solid reputation". But I'm guessing this would be bad for short-term thinking, the wish for "the everything store". You can't be quality store and "everything store". Everything is mostly junk (Sturgeon's law).
h2odragon 4y ago
Like bonds for construction work. The usual way that small companies do that is insurance; the insurance companies look into how likely a company is to be able to perform and charge appropriately. The risk assessment function rides on them with commercial incentives instead of corruptible government. In theory.
- 14 4y ago
  HN likes to believe that any sort of monetary entry barrier automatically equals big player monopoly and that it will prevent the smaller guys from entering but as in your example this is just not true. In fact like you say has sprung up secondary markets like insurance companies.

by 14 4y ago

silvestrov 4y ago

> $5 million in escrow Nestle have no problem putting up $5M, but most good small companies just can't. So the end effect is that you enable big monopolies. You need to invent some kind of reputation system. Small towns (and communities) have this builtin as everybody knows almost everybody. Amazon is missing the ability to say "this is a new seller without solid reputation". But I'm guessing this would be bad for short-term thinking, the wish for "the everything store". You can't be quality store and "everything store". Everything is mostly junk (Sturgeon's law).

h2odragon 4y ago

Like bonds for construction work. The usual way that small companies do that is insurance; the insurance companies look into how likely a company is to be able to perform and charge appropriately. The risk assessment function rides on them with commercial incentives instead of corruptible government. In theory.

14 4y ago
HN likes to believe that any sort of monetary entry barrier automatically equals big player monopoly and that it will prevent the smaller guys from entering but as in your example this is just not true. In fact like you say has sprung up secondary markets like insurance companies.