Amazon

Amazon was launched in 1995 by Jeff Bezos. Headquartered in Seattle, WA. it has taken a huge market share of retail sales as each of us already know. I was briefly watching a business program today which says that Macy’s is restructuring and closing something like 80 stores nationwide.

Now, I am not a business maven so I am more or less thinking out-loud as I write this. In part, my thinking is directed by my experience both in business and as a consumer for all my 6+ decades. Amazon started by actually losing money to sell cheaply and beating others in the book market to start. Later, they transitioned into almost the entire retail sales markets, all the while losing money. What that got them was a leverage position which, in time, has given them control, should they want to exercise it, of retail  across the board.

In some ways that is good for us. Cheaper pricing is what we need in this economy. I have a tendency to look at the long road though. We have laws against monopolies and have since the 1920’s. However, the government has turned a blind eye on the monopoly limitations and margins for a number of decades. In saying this I am aware that this crosses party lines in politics. Some make a big, public deal about monopolies and others do not. I wonder what financial institution or group has been propping Amazon up after these few decades of losses.

Now, a bit of what I am writing here is surmise on my part. having no access to Amazon’s book keeping I can only conjecture. Remembering tendencies, however, I wonder if having such a market share by Amazon is a good thing. Given Macy’s having to restructure and rid themselves of some 80 stores makes one wonder what would happen if this becomes a trend while Amazon clinches more and more market share. Pricing is dependent on competition, right? What happens when there is little to no competition? I guess we shall wait and see.

 

Originally posted 2017-01-05 21:18:38.

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