I’m just glad I just avoid Amazon entirely.

The last handful of paragraphs:

The decline of Amazon is closely tied not just to its size but to how it has chosen to grow. Amazon is now less of a store than a mall, or maybe a sprawling bazaar. Last year, nearly 60 percent of units sold on Amazon came from third-party sellers rather than from Amazon itself. Want to set up a booth? There’s a nominal monthly fee to reserve the space. From there, though, the charges add up quickly, according to a report from the ecommerce-intelligence firm Marketplace Pulse.

Amazon takes a cut of every transaction, typically about 15 percent. For front-and-center placement, you’d better pay for one of those sponsored slots. According to the FTC, advertised products are 46 times more likely to get clicks. Call it another 15 percent of revenue. Oh, and if you want to qualify for Prime—and if you want any shot of making a sale, you do want to qualify for Prime—you’ll need to use Amazon to fulfill your orders. That’s another 20 to 35 percent off the top. All of a sudden, half of your revenue is in Amazon’s coffers.

Amazon itself has reported that all of those fees amount to a big business; the revenue generated from them has tripled since 2017, totaling $117.7 billion last year alone. But although it’s been great for Amazon, it hasn’t been great for consumers. When sellers are nickeled-and-dimed, not a lot of savings are left to pass on to you.

Amazon denies that it squeezes its third-party sellers at the expense of shoppers. “The FTC’s allegation that we somehow force sellers to use our optional services is simply not true,” David Zapolsky, Amazon’s general counsel, wrote in a lengthy response to the charges. “Sellers have choices, and many succeed in our store using other logistics services or choosing not to advertise with us.”

That is technically true, but in a world where so much of online retail runs through Amazon, choice is an illusion. Dare to offer a cheaper product elsewhere online, and Amazon might bury your listing on its platform. A heavily redacted portion of the FTC suit claims that the company “deploys a sophisticated surveillance network of web crawlers that constantly monitor the internet” for such sellers. (In his response, Zapolsky says that the FTC “has it backwards” and that the company doesn’t “highlight or promote offers that are not competitively priced.”)

Of course this is where Amazon wound up. The company spent years sacrificing profit for scale, until it had so many customers that sellers couldn’t ignore it. Now that it extracts billions each month from those sellers, it can afford to ignore those customers—or at least prioritize them less. Amazon gets paid by all of its vendors, no matter which products go in our cart.

Shoppers are not privy to any of these machinations while browsing Amazon. We can’t know which third-party sellers have been banished to the shadow realm, or how tightly their margins are squeezed. Even knowing this might not get us far, considering how entrenched Amazon is now in American life. On Monday, I went ahead and bought the Linfairy Kids Child Purple Dye Wig Halloween Costume Cosplay Wave Wig, for $19.88 plus tax. My daughter liked the curls. It’ll be here by Thursday, which is no small relief. After all, it was my only option.

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I don’t get it

I worked in retail on and off for 7 years and every store charged markup. Some products were marked up 70-80%. One place I worked was Best Buy. I regularly sold USB cables where the store cost was $2 for $32.

Amazon fees are essentially their markup. It’s impossible to run a store without it

There is a way to avoid buying utter shit on Amazon most of the time, but it’s annoying- type in the full product name including the manufacturer. Like instead of “noise-cancelling earbuds,” you have to type in “Skullcandy sesh ANC” (highly recommended and inexpensive wireless earbuds, by the way). Then the result is at least near the top of the list. Of course, this requires you to know what you want before you go there, which can sometimes, due to researching it, require going to some other website to make the same purchase anyway.

I basically don’t do non-specific searches Amazon at this point unless I want it to be cheap and I honestly don’t care if it sucks. If I buy a male-to-male cable converter and it craps out after a month… well, it was only $1.

Amazon at it’s core is a hyper-localized logistics company. Their entire product is logistics, the bulk of their revenue comes from that, and that’s how the company got started. This is just the next evolution of that as they see it, and it’s fucking gross. Other companies take their lead so as not to attract negative attention when they emulate this crappy behavior, so expect much more of this in odd places you wouldn’t expect.

Link without paywall:

archive.ph/fnE6C

Last week I canceled my Amazon Prime membership. It felt so good on so many levels. I asked myself why I am paying prime membership? For expedited shipping on products I haven’t purchased yet and don’t know what they will be? To pay for products that will be shipped in two days instead of 5 days? I can wait. If it’s urgent, I will go to a brick and mortar. Finally, for Amazon prime video, a crappy streaming service in comparison? I hardly use this streaming service. It was an easy decision.

There was a whitepaper that Amazon published like…5-10 years into their market dominance where they shared how they wanted to get into drone-based delivery because the vast majority of items purchased on Amazon were very light-weight items.

This tracks with me. The problem that Amazon solved (at least for me) was the ability to find small items that are near impossible to find in a Walmart or other superstore. For example, say you are looking for some wax for your car. You go to Walmart and you see a wall of products. Now did they put the wax in the right place or did they put it with the cleaning stuff? You spend 20-30 minutes looking for this one item that you’re not going to buy again for maybe a few years when you can go on amazon, find it, buy it, and have it at your door in two days.

Walmart and other stores have gotten better with their apps but they need to do what Home Depot/Lowes have done and do aisle AND bay, and, ideally, where on the shelf to find it. They already have this information but they don’t want you you to exactly know where it is because Walmart wants you to browse.