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by RaftPeople
247 days ago
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> Before people bring their pitchforks to this headline In addition to your points, something people forget is that in the previous model of brick and mortar stores, the consumer is the person that did the walking around the store and picking the items off the shelf and carrying them to the checkout. So a portion of what Amazon is automating used to be performed for free by the consumer. This was one of the big arguments about their business model for shipping books early on, the additional costs in a competitive retail market seemed like it would be unprofitable. |
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Before Amazon, there were the club warehouse retail models like Costco where the frontend experience was cut down and the backend infrastructure scaled up. This all led to cost savings passed onto the customer.
Amazon seems like the next step where the last mile delivery infrastructure was expanded and the retail frontend was replaced by a website. Instead of millions of frontend retail workers, it's software knowledge workers with an accompanying expansion of the backend retail workers.
Now, the software knowledge workers are eating backend retail.