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You might want to take a look at http://bits.blogs.nytimes.com/2014/05/23/amazons-tactics-confirm-its-critics-worst-suspicions/ http://bits.blogs.nytimes.com/20
by olefoo 12y ago
You might want to take a look at http://bits.blogs.nytimes.com/2014/05/23/amazons-tactics-confirm-its-critics-worst-suspicions/ http://bits.blogs.nytimes.com/2014/05/23/amazons-tactics-con...
It certainly seems like Amazon is beginning to exercise their strength as a monopsony to gain unfair advantages and extend their business into new areas without actually competing on merits.
- QuantumChaos 12y agoI don't see how a single instance of Amazon misusing their monopoly power, equates to price rises across the board. So far I imagine the overall affect of Amazon has been to reduce consumer prices.
- alextgordon 12y agoAmazon tends to (ab)use their monopoly power through things like shipping costs. As an emporium of everything, Amazon already has a distinct advantage. Even if prices are higher on Amazon than other e-commerce sites, it makes sense for me to use Amazon because I can get 2, 3, 4 products shipped at once. That can be a big saving. Additionally, Amazon subsidised widespread free shipping on low-ticket items for many years, in the UK they have only recently gotten rid of it[1]. That free shipping policy, while great for consumers in the short term, did starve out a lot of their competition. And of course, the larger Amazon gets, the better shipping rates they can negotiate. My orders are now delivered to me by a "Amazon Logistics". It seems they've finally achieved full vertical integration. [1]: http://www.bbc.co.uk/news/technology-23423305 http://www.bbc.co.uk/news/technology-23423305