I think Amazon is a monopoly. In the past, government solved this by breaking up the monopoly into regional powerhouses or breaking the business into un-vertically-integrated parts. With this said, I don't think Amazon's business structure lends itself to this. Ideas?
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Replying to @Molson_Hart
Probably the easiest thing would be to break AWS from it. AWS's profits is what enables Amazon to pressure the competition with zero margins.
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Replying to @obstaclecap
That's a misconception. Amazon has low margins only on big ticket items that it sells itself, like Samsung TVs. Amazon prints money on their 3rd party business. Amazon without AWS is still a standalone monopoly.
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Replying to @Molson_Hart
Consider
$AMZN as a#monopsony see@Bfklin tweet. Does monopsony power fall under Sherman antitrust law? idk but it is a thought. For more on Amazon seller power, seehttps://www.seattletimes.com/nation-world/amazon-antitrust-critic-has-her-own-critics-now/ …5 replies 0 retweets 1 like -
Replying to @EllieAsksWhy
for manufacturing to become more local and break the subsidizing, FX fixing of China and any other actor that is subverting natural balancing trade of Ricardian economics. My view. /end.
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Replying to @Bfklin @EllieAsksWhy
I'm pretty sure we are far from the cusp of automating the jobs you listed. Just recently, the CEO of waymo expressed his skepticism that selfdriving cars would ever be able to work in the rain for example. No robot has human dexterity nor our vision, far from it.
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Also, I'm not sure we would reach an equilibrium with China were they to free float their currency. The USD is the world reserve currency and as much as we are a net importer from China, they like holding dollars and stuff like U.S. real estate.
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Amazon has monopoly power (or monopsony power) and as much as I resent the company, for one so powerful the harm they've caused using that power has been minimal. That said, I wish they would lower their %take on goods sold on website to benefit consumers.
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Replying to @Molson_Hart @EllieAsksWhy
Yeah. I agree with that. Since they openly compete with their third party partners, take less or don't compete. It does provide an incentive for a new platform with a lower fee.
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Their Network effects are strong. The new platform would have slow shipping. Also, at any time Amazon could kill it by lowering their referral fee. It's kind of like being an oil company with standard oil trust was around. They dump, you die.
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Replying to @Molson_Hart @EllieAsksWhy
You make a strong argument of competitive factors and Amazon's scale. But if you meet MOQ, you can order direct from factory now on Alibaba. Amazon's value is delivery and distribution. Not sure there isn't room for innovation, competition.
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Replying to @Bfklin @EllieAsksWhy
I think if the following companies merged and the Wayfair guys ran it it could work: eBay, http://walmart.com , Wayfair, FedEx.
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