[Retric]

Amazon has killed plenty of small businesses that survived Walmart. Walmart didn’t go after the hobby shop style niche business the way Amazon’s million product warehouse could.

People worked out you can compete with Walmart by having a deeper selection as long as the population density supports it, but it’s not clear what small retail can do to survive Amazon.

[mtnGoat]

On the flip side Amazon created hundreds of thousands of small business, it allowed them access to a global market. The ones that died could have done the same and remained competitive, they were asleep at the wheel instead. I see Walmart as more of a monopolist by going into small towns and selling at a loss. Whereas Amazon was an equalizer allowing anyone to compete in a global marketplace, those that opted not to, got their lunch stolen.

[Retric]

Hardly, the vast majority of physical stores don’t manufacture anything they simply aggregate merchandise from wholesalers and operate a physical location. There is no way to transition that model to Amazon marketplace because they don’t have any way way to differentiate themselves. Attempting that transition would have simply lost them a great deal of money.

There are a mix of ways to profitability operate with Amazon both legitimately or via various kinds of fraud. However, suggesting that transition is often as reasonable as telling a barber to open a veterinary clinic, it’s just a completely different kind of business.

[mtnGoat]

But that’s changing the measurement to fit your argument, most sellers on Amazon aren’t directly manufacturing their goods either, yet still have margin. We are talking about retailers switching how they offer their goods. Rely less on the store front and just ship more stuff, isn’t a major change to business model. Adding a shipping center isn’t hard.

But either way business is dog eat dog and you have evolve to survive. Don’t blame the competition for building a better mousetrap. This is free markets and capitalism operating as intended.

[Retric]

You’re the one suggesting these companies could have made the switch.

I have no problem with capitalism crushing companies, as long as it’s head to head in a free market rather than based on fraud or avoiding regulations. I am simply pointing out Amazon has been a huge net loss for small businesses, which it objectively has.

[mtnGoat]

But that is no fault of Amazon is my point, it’s the business owners failure for failing to adapt to changing market conditions.

And my gripe is that they project their failure at Amazon rather than owning their own poor decisions.

[Retric]

Amazon is at fault for the amount of fraud on their platform and the amount of damage it’s caused both businesses and customers.

It isn’t at fault for people preferring to buy stuff online or Amazon’s highly efficient supply chain etc.

[robertlagrant]

I don't think it's that simple. I've heard stories of Amazon doing data analysis on its own marketplace, coming out with competing products for ones it think it can make a profit on, and putting them above the 3rd parties in search results.

[hnbad]

> Amazon created hundreds of thousands of small business

Based on my experience most of those small businesses are reselling uncertified whitelabel shovelware (especially electronics) from Ali Express. That's a bit like praising cancer for rejuvenating the body by reducing the mean age of all cells.

Of course you could also say it created a lot of businesses via "self-employed" last mile delivery drivers but I think we're all adult enough to acknowledge that the gig economy is a scam to skirt labor laws, not an actual net positive for those working within it.

Pretending small businesses could have kept up with Amazon by "doing the same" is absurd. Small businesses lack the infrastructure to offer one day (or even same day) deliveries and free returns with full refunds. We've reached a point where buyers take these things for granted to the point of balking at shipping costs for goods privately sold on eBay classifieds because they have no idea what delivery companies like UPS or DHL charge.

Even as a marketplace, Amazon cannibalizes its sellers via its "Amazon basics" brand which copies products if they get popular enough and often undercuts their pricing while also benefiting from the Amazon branding.

> Whereas Amazon was an equalizer allowing anyone to compete in a global marketplace, those that opted not to, got their lunch stolen.

Saying "allowed anyone" makes it sound like it was optional, yet that "those that opted not to" died off demonstrates that it wasn't. It's nearly impossible to start a small local retail shop but it's also nearly impossible to be a small retail seller on Amazon. There's a reason white label shovelware dropshipping is so ubiquituous: by creating your own brand to resell white label products you make it harder to compare you to your competitors selling the same garbage and you no longer have to directly compete on price. This is effectively the only kind of business on Amazon marketplace that doesn't directly suffer the race to the bottom.

> This is free markets and capitalism operating as intended.

Yes, that's the problem. Free markets accelerate monopolization by forcing local small businesses to compete globally with international megacorps on those megacorps' terms.

The benefits of small local businesses are externalities to capitalism so they get sanded off eventually. Free global markets just rapidly speed up that process.

[mtnGoat]

Exactly, don’t hate the player, hate the game.

I’m not saying it’s right or wrong, nor fair, more pointing out that attacking them for using the levers and dials available To them to return value to shareholders, is short sighted. literally every other company is doing the same, just not as efficiently.