The Problem With Amazon
Apart from the Amazon of 1999-2010 - let's refer to those as the innocent years of Amazon - Amazon has now grown to be such a behemoth and problem to American commerce that even mainstreet is against the proposed HQ2 - all across America. In an article I published last August I stated: Despite the frenzy and furor over Amazon on both sides - shareholders and antitrust types alike - AMZN could have a rough patch ahead. While growth and market share dominate the culture and drive of $AMZN what is happening in their quest for dominance is destruction. When sales competitor Wal-Mart Stores (NYSE: - ) is compared to Amazon the difference is intense: WMT has an enterprise value of $271B with revenues at $486B, Amazon is currently at an enterprise value of $478B with revenues of $150B. The joke in the past was Amason sold $1.00 for $.99, now AMZN is creeping towards selling $1.00 for $.50.” (See article Cool Down Time For AMZN)
The joke is there is no more joke about Amazon selling $1.00 for 0.50 or 0.80 cents on the dollar. Now they will just give the product to you. The website and portal giant they operate is a never ending black hole where staffers brainstorm on the next product or vertical they can swallow and convert into digital thumbnails for sale, no matter the price, or lack of quality control or absurdism behind a third party selling you a $75,000.00 tractor online.
I use Amazon - I began in 1999 buying books. Now I buy random varieties of goods that I refuse to assemble in the real world thru retail experiences. However, I’m not going to buy my next car on Amazon, I’m not going to buy my next surfboard on Amazon. I’m not going to buy fine art on Amazon.
From the AJC: Some fear what Amazon might do to their companies, commutes, neighborhoods and even local and state budgets as job-hungry leaders dangle what will likely amount to billions of dollars in tax breaks and other perks for the Seattle-based company (Link).