This is kind of scary. It seems Amazon is growing by undercutting its competition with its convenience and low prices. But it’s also taking over whole segments of the marketplace, leaving many smaller bricks and mortar businesses who can’t compete in price unable to stay in business. Amazon gets better deals from suppliers because of their huge volume, and they don’t have the overhead a retail store has.
As smaller family businesses and even smaller chains disappear, consumers who have immediate needs will have little to choose from they can buy locally. Amazon and the big warehouse stores sell high volume items cheaper than smaller businesses do. So local consumers often only shop the smaller stores for speciality items they can’t find more cheaply online.
Once Amazon can eliminate its competition, I’m expecting they will raise prices and we will all be sorry we helped make it a monopoly. But it’s not just prices. I’m quite sure that the day will come when it eliminates its affiliate program, cutting the income of thousands of affiliate marketers who still have hundreds or thousands of links to Amazon on their sites they will have to clean up. After all, once they own the market, they won’t need the extra sales that come through affiliate links.
And then there’s publishing……..