- Joined
- Aug 17, 2012
- Messages
- 77
Rep Bank
$255
$255
User Power: 39%
Facebook, Groupon, Amazon: Where?s the business model?
"...Fundamentally, Amazon is a commodity middleman that uses the Internet to receive orders. Commodity businesses are only for the lowest cost producers. Can Amazon, a mere middleman, sell products at lower costs than others like the manufacturers themselves? By definition, no. If that was their business model, they would need to operate out of the lowest cost location in America—one location, buy in huge quantities, and have a better customer list than anyone else. But they are so broad in what they sell now that their customer list is essentially the phone book of the entire nation. Everybody has a phone book. And an Internet connection. And a post office. Amazon has no economies of scale compared to manufacturers. They are not trusted more than the vast majority of the manufacturers whose products they sell. True, they have been around since 1994 and their founder is a billionaire. But they have no viable business model. They seem to continue only because a lot of their suppliers are mindlessly addicted to legacy distribution channels. One by one those manufacturers or new competitors of theirs will realize that they can simply imitate Dell computer and sell direct to users without stores or other distributors. Then who needs Amazon?..."
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Access Restricted: Unlock 1,000,000+ Posts
Stop Peeking Through the Keyhole.
Open the Door.
You hit a wall because the best advice isn't free—it's earned. Since 2007, MJ DeMarco has been active here daily (99.9% active rate), building a war room for entrepreneurs who refuse to settle for mediocrity.
- Active Daily: Life-changing content posted dozens of times every day. No dead threads.
- MJ's Inner Circle: Direct access to the author of The Millionaire Fastlane.
- Vetted Network: Connect with founders scaling to 7 and 8 figures.
- Proven Roadmaps: Strategy over motivation. Execution over "hustle porn."
"SCALED TO 6-FIGURE MONTHS"
"Tips and advice here saved me from huge mistakes, others allowed me to scale my business to 6-figure months."— User MitchC
"INSANE QUALITY OF PEOPLE"
"The number of high quality people I've met from this forum has been insane. All of it predicated on building real value."— User Richard Peck
"You are the average of the five people you surround yourself with."
Are you surrounding yourself with success?
