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The Anti-Amazon Alliance

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81–90 of 419 posts

Re: The Anti-Amazon Alliance

#81

Good article. There are a few unknowns still. 1. Is Google really all in on product search? Their product search is pretty bad at the moment and it's a very challenging search space, esp when you work with tens of thousands of retailers. Going directly to retailer/niche-platform sites usually works better for me. For example, for music related I go to reverb.com, for outdoor to rei.com, etc. I then to Google and Amaz…

Using Amazon for reviews seems ironic to me. Product reviews highlight Amazon's single biggest weakness: trust. You can't trust any Amazon review. Many of Amazon's other failings also center around trust.

I don't disagree. But for some products it's sometimes hard to find reviews outside of Amazon. I also learned how to spot products that have fake reviews.

Re: The Anti-Amazon Alliance

#82

As a consultant, I see companies struggling to compete with Amazon (or Amazon-like companies). Most companies struggle for a couple of reasons - They are ego driven, with legacy execs & others relentlessly protecting their status - whereas Amazon is relentlessly data-driven - They have poor incentive structures and are feature factories. They value velocity over outcomes. Amazon, by being more data driven, is focused…

>> - They are ego driven, with legacy execs & others relentlessly protecting their status

At this stage, I could write a book about the idiocy of executives in tech.

Re: The Anti-Amazon Alliance

#83

As a consultant, I see companies struggling to compete with Amazon (or Amazon-like companies). Most companies struggle for a couple of reasons - They are ego driven, with legacy execs & others relentlessly protecting their status - whereas Amazon is relentlessly data-driven - They have poor incentive structures and are feature factories. They value velocity over outcomes. Amazon, by being more data driven, is focused…

As an amazon employee: >There's little place to hide at Amazon

Meh. I definitely know of teams that slack off for multiple years.

Re: The Anti-Amazon Alliance

#84

As a consultant, I see companies struggling to compete with Amazon (or Amazon-like companies). Most companies struggle for a couple of reasons - They are ego driven, with legacy execs & others relentlessly protecting their status - whereas Amazon is relentlessly data-driven - They have poor incentive structures and are feature factories. They value velocity over outcomes. Amazon, by being more data driven, is focused…

>other orgs heavily micromanage or have structures that create more politics than value Isn't it hard to generalize like this? Consider Apple under Jobs: arguably Apple succeeded because of Jobs micromanagement because Jobs had (to quote Bill Gates) "great taste". Without that unifying sense of taste, you get something like Google, which is quite data-driven, and which doesn't have any unifying personality . Although…

I think the idea that Jobs had "great taste" is a myth. What he was good at was implementing an all-encompassing product strategy that established Apple products as status symbols. I don't think it's an accident that Apple "arrived" in the late 90s. Why? Because that's when their experience with education enterprise could be combined with the broad marketing lessons to be learned from products like Air Jordans.

Apple products were visually-distinctive, but I wouldn't call them beautiful; they were relatively easy to use, though I wouldn't call them intuitive. But because they passed the bar in those two respects - in other words, because Apple products were not ugly nor difficult to use, and therefore not completely repellant on their face - the way was opened for Jobs to execute his coup de grace: positioning (through advertisement, third-party association, and pricing) the iMac, iPod, and eventually iPhone as markers of one's own affluence and taste. Everything else coalesces around that kernel of desirability, whether it's warranted or not. The "unifying sense of taste" of the products themselves is an illusion; what matters is that everyone agrees that Apple is the premium choice, in a society where premium (not necessarily fit) is of utmost importance.

This is why Apple stores and support are so crucial. Every generation of Apple product has a competitor that's more elegant, better-performing, more durable and reliable, better integrated within its own ecosystem, etc. But, again, what Jobs understood was that humanity always trumps engineering in the way our social and cultural hierarchies are constructed. Concierge and community are more desirable - more premium - when problems inevitably arise or UX inevitably fails. They maintain the illusion of usability when usability itself breaks down.

Jobs was just really good at playing people.

Re: The Anti-Amazon Alliance

#85
post #67

Earlier quoted context omitted.

I agree with your points, but I've also found another one that is far more common: They sell products at a loss to gain income in other places. For example, if you are a content producer you are competing with a company that sells "ad-free" video (Prime Video) attached to a low-cost service (Prime) so that they can sell more goods online. Amazon is killing content producers by running a negative margin content busine…

>>Amazon is killing video encoding business by selling a negative margin video encoder to sell through AWS compute. What product are you referring to? I'm in this industry and based on my experience their video encoding+storage+streaming offerings are actually higher priced than their competitors. The reason their services are popular is the integration with the rest of AWS (which is true for most of their offerings)…

I often hear this repeated with Amazon, that it's pointless to try to compete with them because they can just undercut you on price, but I have seldom seen any evidence for it. AWS is one of the most expensive cloud/hosting services for compute, data, bandwidth, etc., the products sold on Amazon are almost always more expensive than buying them from alternate sites or directly from the source.

The only cheap thing that Amazon offers is fast shipping for low-cost products, e.g. buying a $3 cable and getting it shipped for free the next day (assuming you have Prime). But for anything above $50-$100, Amazon is almost always the more expensive option.

Re: The Anti-Amazon Alliance

#86

Earlier quoted context omitted.

don't forget they are also cannibalizing sellers that use their own platform by launching cheaper competition - Amazon basics etc.

All the large retailers have their own store brand. Grocery stores like Safeway have a bunch (Lucerne, Open Nature, Safeway Select).

The large retailers are not monopolies though. Some would argue Amazon is, and therefore must be treated differently.

Re: The Anti-Amazon Alliance

#87

As a consultant, I see companies struggling to compete with Amazon (or Amazon-like companies). Most companies struggle for a couple of reasons - They are ego driven, with legacy execs & others relentlessly protecting their status - whereas Amazon is relentlessly data-driven - They have poor incentive structures and are feature factories. They value velocity over outcomes. Amazon, by being more data driven, is focused…

>other orgs heavily micromanage or have structures that create more politics than value Isn't it hard to generalize like this? Consider Apple under Jobs: arguably Apple succeeded because of Jobs micromanagement because Jobs had (to quote Bill Gates) "great taste". Without that unifying sense of taste, you get something like Google, which is quite data-driven, and which doesn't have any unifying personality . Although…

I am not sure how Google is data-driven. Many decisions look like emotional/political rather than data-driven. On top of that, because Google's primary business is, ads it does not matter how badly they do in any other business unit. Once executives had enough, they are going to cancel the product and call it a day. I lost how many Google services got canceled this way.

Re: The Anti-Amazon Alliance

#88
post #74

Earlier quoted context omitted.

Amazon paid 7 billion in content costs this year, I would estimate it cost another 1.5billion to do the distribution. That doesn't include internal development costs, advertising costs, etc. Prime all together only made 14 billion. Considering that prime almost assuredly doesn't cover its 2day shipping we can be very sure, the video unit is _certainly_ not positive. What's even more important is this quote from Bezos…

That's just describing the strategy of likely the majority of retailers in existence, from grocery stores to theaters though isn't it? Grocery stores have lead products that get people in the stores (like cheap roast chicken) and then make more margins elsewhere. Fast food sells burgers and hope people will buy fries. When theaters have movies that have won awards and have big buzz, it helps them sell more snacks. De…

It's a different strategy. Prime is an investment up front, so it puts people in the mindset of wanting to come up ahead. By buying full Prime, you've essentially prepaid $120 in shipping costs, so you want to take advantage of it and order more than $120 worth in free shipping. Which means you'll likely shift your non-Amazon purchases to Amazon (especially with free shipping making it a cheaper option for some of your orders), and as a result order more there than you would have otherwise.

My guess is that Prime Video exists as a "gateway drug"; you get it for the videos and then realize that extra $4/month or $11/year will get you free shipping, and then you're back to "if I order $120 worth of shipping, it'll pay itself back" thinking.

Re: The Anti-Amazon Alliance

#89
It's common to dogpile on whoever's in the lead. I wish companies would just learn from Amazon and emulate the good parts.

All the news articles about worker safety are about Amazon, but in my local grocery store chains, I see a total lack of masks and social distancing by workers.

Re: The Anti-Amazon Alliance

#90

Earlier quoted context omitted.

> Jeff Bezos is not the monster here - he's just responding to market forces. Market forces are not moral. You don't get a free pass on your actions because you made a bunch of money.

The way different societies organize themselves is they tend to incentivize behavior that is beneficial to their continuation. Society who incentivizes non-beneficial behavior will eventually collapse and be replaced by a more fitting one. If society is to give out free passes for suboptimal behavior to anyone, it's going to be to those who provide it the most value. Kind of like Amazon does to a lot of people right…

If that were the case, slavery would still be legal
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