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To clarify, Ethereum isn't a marketplace or a reputation system. It's just a good platform for building those things. Ordering from Amazon or Alibaba means pay

by natrius 11y ago

To clarify, Ethereum isn't a marketplace or a reputation system. It's just a good platform for building those things. Ordering from Amazon or Alibaba means paying them for the privilege. Systems that connect producers directly to consumers will have lower costs because there's no middleman that needs to skim profits. If such systems become popular, it will be a transfer of wealth from the Amazons of the world to everyone else. I find that desirable. In general, Ethereum gives us powerful tools to coordinate human interactions. That means there will be more human interactions, and you'll be able to interact with people you don't have much personal history with. You will buy your USB drives directly from the factory in Shenzhen with a good reputation score and low prices. You'll get your loan directly from the person who wants to earn returns on their savings.

fleitz 11y ago
Umm... Amazon and Alibaba ship actual things, and how they improve the situation is by economies of scale such that the profit they make is less than the inefficiencies they eliminate. Even then many people would rather go to the mall and pay for local retail space in order to be able to inspect the goods before purchase. I fail to see how ethereum will make the distribution of goods anymore efficient. 'middle man' is just hand wavy economic ignorance.
carterehsmith 11y ago
>>Systems that connect producers directly to consumers will have lower costs because there's no middleman that needs to skim profits. Will it? Amazon and the likes operate on notoriously slim margins whilst buying at wholesale prices, and getting shipments in bulk. Whereas me buying 1 widget from Shenzhen, that will be retail price, plus shipment for 1 single item overseas, that will cost way more than Amazon is paying per bulk-shiped item. I don't see how all that could add up being cheaper than buying it at Amazon or Walmart or whatever.
- natrius 11y ago
  Wholesale prices exist because it's hard to find customers. Selling in bulk to a single customer is a good deal. However, when it's effortless to connect producers with customers, everyone will get wholesale prices. You won't pay to ship one single item. The entire batch from the factory that's heading for your country will go out together on one boat with lots of other stuff. Instead of going to an Amazon warehouse when it gets here, it'll just go to you, along with all the other goods from the port headed to your area. Decentralizing shipping will make it more efficient, too. Another option is that a manufacturer who expects overseas customers can ship the goods to convenient locations for their customers to get faster shipping times. Amazon uses part of their markup to pay for that today. Customers will pay for it directly in the future. Customers will pay for everything directly. Anyone with a warehouse will be able to make money by participating in the decentralized retail system, but today, it's impossible for those people to compete with Amazon and Walmart. Competition will drive down profit margins.

by natrius 11y ago

fleitz 11y ago

Umm... Amazon and Alibaba ship actual things, and how they improve the situation is by economies of scale such that the profit they make is less than the inefficiencies they eliminate. Even then many people would rather go to the mall and pay for local retail space in order to be able to inspect the goods before purchase. I fail to see how ethereum will make the distribution of goods anymore efficient. 'middle man' is just hand wavy economic ignorance.

carterehsmith 11y ago

>>Systems that connect producers directly to consumers will have lower costs because there's no middleman that needs to skim profits. Will it? Amazon and the likes operate on notoriously slim margins whilst buying at wholesale prices, and getting shipments in bulk. Whereas me buying 1 widget from Shenzhen, that will be retail price, plus shipment for 1 single item overseas, that will cost way more than Amazon is paying per bulk-shiped item. I don't see how all that could add up being cheaper than buying it at Amazon or Walmart or whatever.

natrius 11y ago
Wholesale prices exist because it's hard to find customers. Selling in bulk to a single customer is a good deal. However, when it's effortless to connect producers with customers, everyone will get wholesale prices. You won't pay to ship one single item. The entire batch from the factory that's heading for your country will go out together on one boat with lots of other stuff. Instead of going to an Amazon warehouse when it gets here, it'll just go to you, along with all the other goods from the port headed to your area. Decentralizing shipping will make it more efficient, too. Another option is that a manufacturer who expects overseas customers can ship the goods to convenient locations for their customers to get faster shipping times. Amazon uses part of their markup to pay for that today. Customers will pay for it directly in the future. Customers will pay for everything directly. Anyone with a warehouse will be able to make money by participating in the decentralized retail system, but today, it's impossible for those people to compete with Amazon and Walmart. Competition will drive down profit margins.