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FEATURED! Has Amazon become a monopoly?

Discussion in 'Business Models, Niches, Industries' started by MJ DeMarco, Jul 27, 2018.

  1. MJ DeMarco
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    MJ DeMarco Raving Lunatic Staff Member Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    Interesting. To back this up, Kroger recently bought Vitacost (a mid-sized vitamins/grocery mail order company) and I use them often, like weekly.

    They are cheaper than Amazon, offer 1 day shipping, and have light years better service. So in this small realm, Amazon is being beaten.
     
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  2. MJ DeMarco
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    Aside from the political undertones, it does shed some light on how Amazon treats its employees.

    I'm all about capitalism and getting rich, but not at the expense of treating people like dirt. Again, it's all a facade. Amazon treats customers like GOLD, but everyone else in the supply chain can go F-themselves. If you're a supplier and ever had to deal with their so called "customer service", you know what I'm talking about.

    Jeff Bezos's $150 Billion Fortune Is a Policy Failure - The Atlantic

    On a Fastlane "money system" note, Bezos would have to spend $28,000,000 a day just to stop accumulating wealth. Now that's some passive income!
     
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    Its absolutely crazy but as a Consumer I love Amazon but from reading whats been written here it is scary what disruption power Amazon has!
     
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    Amazon is good at one thing: Logistics.

    Amazon will be beat eventually when someone else can figure out how to deliver products faster then they can from the retailers who sell them.

    This sounds crazy and far fetched, but remember those systems of suction tubes from the Jetsons? You put something in the capsule, and it delivers it instantly through a network of tubes? Make that happen and have one going to every house in an underground network and amazon will be obsolete.
     
  6. jmusic
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    True, but the same can be said about USA's collective decision to outsource manufacturing to China. In the short term we've benefited hugely from it, but I believe we're reaching the end (if we haven't already) of the benefits of that strategy. Not to mention the fact that we've totally shafted the blue collar worker over the last 50 years.

    Circling back to the Amazon debate, that's why monopolies are so dangerous. In the early stages all people see are the benefits, but when ZERO competitors are left because they've all been run out of business, the last man standing is free to charge whatever he wants!
     
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    Holy crap that sounds expensive. I doubt even Apple with their $1T market cap could afford that. If anyone does it first it'll BE Amazon.

    I think if 3D printers get much more advanced they could disrupt SOME of Amazon's business model... until they get bought out.
     
  8. GPM
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    I am guilty of feeding the machine. I order nearly everything online, and probably 90% of my online purchases are made at Amazon. It is people like me who give them all this power.

    I get all my physical books from thrift stores, but >90% of my purchases are digital through audible or kindle.

    I get my groceries from Costco, and my major computer supplies from a small local vendor that I like to support. Other than that nearly everything I purchase is off of amazon. I like not having to leave my house, fight traffic, and then wander store isles looking to find what I want. I can get out of my phone or hop on the computer and just click a few buttons and have it show up the next day.

    Amazon tells me I have 33 orders so far in 2018, 65 orders in 2017, and 58 in 2016. I don't see myself moving away from the platform either. But at the same time they do scare me. Hmmm... Is this like the Americans that complain that Mexicans are stealing their jobs, and then go to the corner and hire them as soon as they need labor done?
     
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    Amazon will become the ultimate monopoly, the final manifestation of hyper capitalism. Seems like they can win at everything they enter, and I believe it is inevitable that they get into beef with the other giants (and win).

    No other company has managed to succeed in branching out as much as Amazon, even with all the gimmicks and crazy startups that Google and Facebook acquire they are still a one trick pony - online advertisement platforms. Amazon are much more "offline", which is so much harder to achieve when you think about it. A few years old SAAS can easily dominate a niche worldwide, for a company to dominate offline, well, it has to be like an oil conglomerate controling men with guns...

    Alexa has the potential to destroy Google, and it ultimatelly will.

    Facebook's Marketplace is a move on Amazon. Not sure how Amazon will respond. My personal opinion is that Amazon will release a phone-like device, trying to push Amazon owned apps.

    Weirdly, I think that the giant most resistant giant to Amazon is Microsoft. They seem to be making the right moves, especially with LinkedIn and Github. Still, I'm sure Amazon will find a way to devour them in the future too.

    Their end can only come from a blockchain entity that will be somewhat publicly owned and reward users in some hybrid model between capitalism and UBI. Otherwise we all end up working somewhere in and for the Amazon world.

    Ok, I know, this is a little scifi, but it's fun and I think there could be some truth in it :)

    Cheers
     
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    I know this is a side track from the thread topic, but greed was the basic reason for the move, not only by the people of the USA, but every western country to shift manufacturing to China.

    The benefits (greed for lower cost products) have been largely ephemeral and illusory. Chinese suppliers have been able to dominate large parts of the market to the extent that they have for a long time been calling the tune on price and quality. This is part of the reason for Taiwanese companies, who years ago set up factories in China have been steadily shifting production to places like Vietnam, Cambodia and Bangladesh.

    It's also part of the reason for the re-shoring that has been gathering pace in recent years, whereby manufacturing has been steadily shifted back to western countries by the multinationals who began the stampede to China.

    In many cases the presumed and expected cost benefits were not there in the first place. Production of many low labor cost products was shifted to China without good reason, and I have been in factories where I have seen automated machinery being used that I knew was imported second hand from the factories in the USA, Australia, UK where it had been successfully churning out relatively low cost products.

    One side effect of the crazy move to ship jobs to China, was the loss of quality. The concept of quality was not well understood in China and they have been slow to learn it. I demanded high quality and got it when I first started importing from China in 1987, but it was a constant battle to maintain that high standard.

    Efforts to train Chinese manufacturers in the value of producing quality goods was severely hampered by big retailers demanding lower and lower prices. They got them, but they also got lower and lower quality.

    Just consider the high return rate on some products carrying famous old brands. How much have they really saved? Mind you a lot of those famous brands have surrendered and sold their trademarks to Chinese companies without any publicity.

    Walter
     
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  11. Denis from BE
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    Unfortunately everything is made by Amazon to keep customers buying via their plateform whatever you need to buy. As a customer point of view it's a very nice service, but on the hiden side...

    Making business based on system like Amazon or Uber shouldn't be a good idea in long term. Their policy are too unrealiable and with big impact. (especially if main income stream come from it)

    I'm very curious to see it how will go in the next years when Zozos will get more & more power on every industries. How this guy can sleep ?
     

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