Is Amazon the new Walmart?
Walmart has had some difficult times expanding into many areas in the last few years. They are known as anti-employee, anti-union, and generally considered predatory and a huge thread to local economies that they have moved into or plan to move into.
On the other hand, there is Amazon. While they have a great reputation and remarkable technology and a huge technology work force, they are also sustained (from what I've read) by their warehouse workers throughout the country, often low paid agency temp/contract workers who might get little if any benefits, working very long hours in tough conditions. Why agency workers? One has to believe agencies help Amazon obtain enough workers, but also helps Amazon keep from paying benefits such as vacation time, health insurance, (workers comp?) raises, and all the things that would be associated with having the workers on Amazon's payroll, including tempering the ability for these workers to unionize because they aren't Amazon employees.
So much has been made about Walmart moving into new communities. They have been known to affect so many local businesses, driving many of them out of business. Is Amazon any better? Could they be worse, perhaps much worse? Amazon affects not just local businesses, but all businesses. Ever considered buying something and thought, 'I'll look them up online first and then decide.' [Reads: I'll check amazon's reviews and their price first, then use Prime to get it cheaper in a couple days.]
While Amazon hurts traditional retailers, they also can hurt the health of manufacturers. It's almost a requirement to have one's products sold on Amazon these days, but while selling wholesale to Amazon can bring a lot of sales, it also can destroy a manufacturers other sales distribution channels that can't compete with Amazon's very low sales margins. And if 'reviews' aren't good and as a result sales aren't brisk on Amazon, they probably aren't going to be brisk elsewhere either. Also this means manufacturers have to concede to Amazon's wholesale rates and policies, or face the implications of not being on Amazon if they don't.
Jeff Bezos said recently (on that pre-Christmas 60 Minutes fluff piece on Amazon) that his goal is for Amazon to sell "everything." While selling "everything" sounds great for a consumer that just wants to purchase something at the best price and receive it as soon as possible, what will this do to local economies and local retailers that already have difficulty competing with Amazon? Local jobs? While not many have empathy or concern for the health of a retailer like Walmart, how concerned is everyone about other local markets, particularly ones that aren't highly leveraged national chains or franchises, if Amazon continues to take a greater bite out of local economies?
Bezos also wants "same day" shipping to all major markets, which some Amazon customers already experience. This also could have a huge impact on local economies, and for some businesses, a catostrophic effect.
While Tesla is getting iced out of being able to sell it's cars online, the clear threat to an online new car sales economy would clearly be Amazon, and I'm sure that's a door the industry doesn't want to open.
So at what point do things like 'monopoly' and 'predatory pricing' and 'predatory practices' get bounced around for Amazon?
I'm not sold either way - I love Amazon as much as the next person, but I believe at some point people have to take it upon themselves to ask, 'How big is too big' for Amazon, and think about the pros and cons about Amazon seeking to have as much influence in as many marketplaces as they would really like to have, because where they are right now is far from where they want to be.
Walmart has had some difficult times expanding into many areas in the last few years. They are known as anti-employee, anti-union, and generally considered predatory and a huge thread to local economies that they have moved into or plan to move into.
On the other hand, there is Amazon. While they have a great reputation and remarkable technology and a huge technology work force, they are also sustained (from what I've read) by their warehouse workers throughout the country, often low paid agency temp/contract workers who might get little if any benefits, working very long hours in tough conditions. Why agency workers? One has to believe agencies help Amazon obtain enough workers, but also helps Amazon keep from paying benefits such as vacation time, health insurance, (workers comp?) raises, and all the things that would be associated with having the workers on Amazon's payroll, including tempering the ability for these workers to unionize because they aren't Amazon employees.
So much has been made about Walmart moving into new communities. They have been known to affect so many local businesses, driving many of them out of business. Is Amazon any better? Could they be worse, perhaps much worse? Amazon affects not just local businesses, but all businesses. Ever considered buying something and thought, 'I'll look them up online first and then decide.' [Reads: I'll check amazon's reviews and their price first, then use Prime to get it cheaper in a couple days.]
While Amazon hurts traditional retailers, they also can hurt the health of manufacturers. It's almost a requirement to have one's products sold on Amazon these days, but while selling wholesale to Amazon can bring a lot of sales, it also can destroy a manufacturers other sales distribution channels that can't compete with Amazon's very low sales margins. And if 'reviews' aren't good and as a result sales aren't brisk on Amazon, they probably aren't going to be brisk elsewhere either. Also this means manufacturers have to concede to Amazon's wholesale rates and policies, or face the implications of not being on Amazon if they don't.
Jeff Bezos said recently (on that pre-Christmas 60 Minutes fluff piece on Amazon) that his goal is for Amazon to sell "everything." While selling "everything" sounds great for a consumer that just wants to purchase something at the best price and receive it as soon as possible, what will this do to local economies and local retailers that already have difficulty competing with Amazon? Local jobs? While not many have empathy or concern for the health of a retailer like Walmart, how concerned is everyone about other local markets, particularly ones that aren't highly leveraged national chains or franchises, if Amazon continues to take a greater bite out of local economies?
Bezos also wants "same day" shipping to all major markets, which some Amazon customers already experience. This also could have a huge impact on local economies, and for some businesses, a catostrophic effect.
While Tesla is getting iced out of being able to sell it's cars online, the clear threat to an online new car sales economy would clearly be Amazon, and I'm sure that's a door the industry doesn't want to open.
So at what point do things like 'monopoly' and 'predatory pricing' and 'predatory practices' get bounced around for Amazon?
I'm not sold either way - I love Amazon as much as the next person, but I believe at some point people have to take it upon themselves to ask, 'How big is too big' for Amazon, and think about the pros and cons about Amazon seeking to have as much influence in as many marketplaces as they would really like to have, because where they are right now is far from where they want to be.