> Unless component makers want to get absolutely fleeced by Amazon undercutting it with knock-offs, they need to offer customers an alternative that Amazon can'

> Unless component makers want to get absolutely fleeced by Amazon undercutting it with knock-offs, they need to offer customers an alternative that Amazon can't undercut. How is a small company supposed to able to sell at a comparable price to Amazon? Or reliably develop uncopyable tech advantages for products that are already commodities? 1. Amazon can source parts and manufacturing services in larger scales, at better prices. 2. Amazon doesn't lose margin to advertising, marketing or sales partners. 3. Amazon can give its products greater visibility than even the highest paying advertiser on their site. 4. Amazon will get customers at greater scale, amortizing fixed costs like design and other overhead across more sales. 5. Amazon can scale production up and down to avoid waste, given their bird's eye view of real time demand. 6. If Amazon wanted to, it could even scale sales up and down so that they only use free slack in its warehouses and logistic systems, essentially eliminating those costs for itself. There is a reason Amazon is an antitrust target. Their vertical integration tilts everything their way decisively for anything they can decently copy.