3 ms·
They more or less did this against diapers.com. They simply forced them to be acquired by selling diapers at a loss. The thing is, it's easier than ever to sta
by mattmaroon 3y ago
They more or less did this against diapers.com. They simply forced them to be acquired by selling diapers at a loss.
The thing is, it's easier than ever to start an e-tailer. I've been using Deliverr (which is now owned by Flexport) which does 3rd party logistics along with Shopify. If Amazon pumped their prices on diapers, it would be really easy to start an online diaper store. The threat keeps them honest to some extent.
Obviously, you can't fight Amazon directly on selling everything. But 3rd party retailers to sell targeted things can be spun up quickly if Amazon lets their prices in any one category creep up too high.
And Amazon competes in individual categories with a lot of people. I can buy a lot of home repair type things on Amazon, or at Wal-Mart, Home Depot, Lowe's, Menards, etc. I can buy a lot of electronics on Amazon, Wal-Mart, Best Buy, etc.
There's a lot of competition in retail in general and likely always will be, there just isn't a lot of competition in everything stores and it's hard to see how that would change.