How Amazon Can Blow Up Asset Management
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How Amazon Can Blow Up Asset Management
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Re: How Amazon Can Blow Up Asset Management
#2I don't think this would be a good idea for Amazon. I don't trust it right now to provide me things that aren't counterfit unless its sold by the actual supplier. Allowing funds to be on its platform without proper vetting seems strange. If Amazon actually wanted to go into the Asset Management space I would actually see it buying something like Robinhood. The problem in Asset management is all of the people who would regularly be retail investors are too smart to be peddled a bunch of random mutual funds and instead try to use index funds. The margins for those are already cut to the bone. I don't see how they could compete with something like Schwab intelligent portfolio either.
Re: How Amazon Can Blow Up Asset Management
#3If Robinhood, a start up with very few resources, can offer commission free trading, I'd bet Amazon could offer approximately 0 cost S&P500 funds.
If the partnership with JP Morgan works, people could direct deposit money into their Amazon account, auto-invest into Amazon funds, and then spend on Amazon ecommerce. In this model, Amazon immediately saves ~2% on credit card transaction fees, a small portion of which could be used to subsidize cheap or 0 cost investments.
Essentially Amazon could vertically integrate the money that will be spent on their products in the future...
Re: How Amazon Can Blow Up Asset Management
#4Amazon has a serious problem with counterfeit goods and fake reviews. One might think that with the rise of AI/ML catching fake reviews and counterfeits will be much easier but Amazon doesn't seem to be doing any thing. In which case, allowing them to handle money seems like a recipe for disaster.
As for the Ant Financial comparison, I find it hard to believe that Amazon is not utilizing the reserves it gathers by selling gift cards on its platform. Those too are excess reserves to be paid to suppliers once customers utilizes and buys something from a supplier.
Re: How Amazon Can Blow Up Asset Management
#5Amazon has a serious problem with counterfeit goods and fake reviews. One might think that with the rise of AI/ML catching fake reviews and counterfeits will be much easier but Amazon doesn't seem to be doing any thing. In which case, allowing them to handle money seems like a recipe for disaster. As for the Ant Financial comparison, I find it hard to believe that Amazon is not utilizing the reserves it gathers by se…
> Amazon has a serious problem with counterfeit goods ans fake reviews.
I flat out won't buy from Amazon unless I'm already in the market to get something that I know is cheap and may or may not work- which turns out is not very often. Because of this I very much doubt the reality of the retail apocalypse in the long term.
Re: How Amazon Can Blow Up Asset Management
#6I don't think this would be a good idea for Amazon. I don't trust it right now to provide me things that aren't counterfit unless its sold by the actual supplier. Allowing funds to be on its platform without proper vetting seems strange. If Amazon actually wanted to go into the Asset Management space I would actually see it buying something like Robinhood. The problem in Asset management is all of the people who woul…
> I don't trust it right now to provide me things that aren't counterfit
That might be true for a small percent of HackerNews readers that are also Daringfireball readers - but the world at large still trusts Amazon; that's the whole point of the article, really.
As anecdotal evidence, an Amazon Investment might be the only way to convince me to become a Prime member (if that'd be a required precondition). I'd almost certainly use it, if allowed.
Re: How Amazon Can Blow Up Asset Management
#7If Robinhood, a start up with very few resources, can offer commission free trading, I'd bet Amazon could offer approximately 0 cost S&P500 funds. If the partnership with JP Morgan works, people could direct deposit money into their Amazon account, auto-invest into Amazon funds, and then spend on Amazon ecommerce. In this model, Amazon immediately saves ~2% on credit card transaction fees, a small portion of which co…
vanguard and fidelity offer approximately 0 cost S&P500 funds already today.
you're talking .03% in fees. On a $1Mil investment that's $300 a year.
Re: How Amazon Can Blow Up Asset Management
#8Amazon has a serious problem with counterfeit goods and fake reviews. One might think that with the rise of AI/ML catching fake reviews and counterfeits will be much easier but Amazon doesn't seem to be doing any thing. In which case, allowing them to handle money seems like a recipe for disaster. As for the Ant Financial comparison, I find it hard to believe that Amazon is not utilizing the reserves it gathers by se…
> Amazon has a serious problem with counterfeit goods ans fake reviews. I flat out won't buy from Amazon unless I'm already in the market to get something that I know is cheap and may or may not work- which turns out is not very often. Because of this I very much doubt the reality of the retail apocalypse in the long term.
It is by far their biggest problem. Personally, I find 'ships and sold by amazon' to be a brand I trust; outside that? yeah, it's like buying from a shady ebay seller.
Personally, I think amazon needs to distance themselves from those third party sellers; if it's hard to tell the difference between amazon and joe rando, the amazon brand is going to become worth significantly less, and they will not be able to charge the premium that I'm sure their investors are expecting.
Re: How Amazon Can Blow Up Asset Management
#9Given the level of counterfeiting and gamed reviews this seems like a quick route to financial dystopia.
Re: How Amazon Can Blow Up Asset Management
#10I don't think this would be a good idea for Amazon. I don't trust it right now to provide me things that aren't counterfit unless its sold by the actual supplier. Allowing funds to be on its platform without proper vetting seems strange. If Amazon actually wanted to go into the Asset Management space I would actually see it buying something like Robinhood. The problem in Asset management is all of the people who woul…
> I don't trust it right now to provide me things that aren't counterfit That might be true for a small percent of HackerNews readers that are also Daringfireball readers - but the world at large still trusts Amazon; that's the whole point of the article, really. As anecdotal evidence, an Amazon Investment might be the only way to convince me to become a Prime member (if that'd be a required precondition). I'd almost…
so, I trust amazon too (at least the 'shipped and sold by amazon' brand... I consider everything else to be more like ebay)
But... I just don't see how amazon would get me away, say, from vanguard. There are already good retail brokerages, and I don't see why I'd want to go through amazon instead of another company.