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I 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 Amaz
by QuantumChaos 12y ago
I 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