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An interesting discussion of what's coming. I agree that suppliers are in a race to the bottom unless they can provide added value, but the author seems to fixa
by funkah 15y ago
An interesting discussion of what's coming. I agree that suppliers are in a race to the bottom unless they can provide added value, but the author seems to fixate on algorithmic pricing as the ultimate determinant of who wins. He mentions Amazon in this context, but does not mention Amazon Prime, which is just the sort of value-add he's talking about.
I think Bezos saw this coming a long time ago and so he got Amazon ready to be more than a simple rock-bottom-price retail outlet. People love Amazon, and once they get Prime, they start buying from Amazon because all the hurdles have been taken away. In the meantime, Prime offers them additional benefits like streaming movies & TV. I don't think you can really look at the future of retail without this offering looming pretty large. And I don't even have Amazon Prime!