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1 out of every 153 American workers is an Amazon employee

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Re: 1 out of every 153 American workers is an Amazon employee

#121
post #70
post #59

That makes Amazon #3, after the federal government and Walmart: Entity US Employees 1. US Government 2.7M 2. Walmart 1.6M 3. Amazon 1.0M If Amazon continues to grow at current rates, it will surpass Walmart's figure within 2 years. Looking at these figures, it's evident that these three entities are far larger, wealthier, more connected, and likely more powerful than the vast majority of US cities, the vast majority…

Not just a few, Amazon has more workers than any of the 10 smallest states and more revenue than the GDP of the smallest 30 (individually, not summed).

I meant entire states, not just state employees. Some states have fewer residents than Walmart and Amazon have employees.

Re: 1 out of every 153 American workers is an Amazon employee

#122

I’m torn badly with Amazon. After read The Everything Store, and what has been written all over the place, Jeff Bezos is a massive turd. Employees are horribly treated, wages suppressed, and all sorts of terrible and abusive practices. Then it comes time for me to buy something. I needed a new pair of size 14 sneakers. I drove to Adidas, Footlocker, dicks, and a few other stores but I just couldn’t justify $100 sneak…

I come at this from the other point of view: I used to work as an equity analyst (analysing companies), and I ended up gravitating towards retail.

The issue, as you imply, isn't only that Amazon is very good but the experience at many physical retailers is very poor. It is difficult to simplify this down to one thing imo.

Managers in physical retail are unusually bad. Retail used to be ludicrously profitable, so most companies have a dense layer of MBAs who have no real idea how to adapt or innovate.

I recently read The Secret Life of Groceries (not great tbh, but did cover some useful themes) and towards the end of the book (paraphrasing), it is framed as grocers all "compete" to be the best version of the same thing. They strip all the difference out of their product, usually compete solely on price, and (ofc) someone eventually comes in and undercuts them. That is a failure of incentives and management.

This varies by industry, and is not limited to incentives/management. One reason for the lack of innovation in sports apparel is that there are basically two suppliers, and one of them is moving heavily into DTC. Every sportswear shop is just a Nike distributor, so there is no real differentiation there (the only innovation in the sector has been distributors moving up the chain like Sports Direct and Decathlon in Europe). So the reason why you can't find shoes cheaper is actually because of Nike, not distributors (and those distributors lack any capacity to innovate, management is mostly composed of MBAs who likely have worked at Nike or Adidas at some point).

But the solution is counter-intuitive: keep buying from Amazon. There is nothing structural or inevitable about Amazon's success (compare them with the large Chinese retailers, they actually look quite blundering and incompetent, they have made mistakes in distribution already that are going to choke them). Physical retail needs more innovation which can only come through firms dying, and entrepreneurs thinking about what consumers want (this happened with WMT, there was consolidation then competition as WMT got overrun by MBAs and they lost their edge...Tesco in the UK is a very extreme example of this too).

I wouldn't be pessimistic either: the distinction between online and offline retail really doesn't exist. Look at restaurants like CMG, they are taking most of their orders online...but that doesn't change the product. It is the same with retail: taking an order online doesn't change the fact that the retailer is holding some product somewhere, and is distributing that to you (this is the mistake that Nike is making, they are going into DTC thinking they just can just cut everyone out, and jam up prices...it is MBA, day one strategy, and idiotically wrong). The real difference with offline retail is actually the cost of property, which is going to narrow over time. Ofc, this isn't universal...some verticals like hardware stores are ready-to-go already, others like clothing probably aren't (there isn't much value-add at consumer contact, and they pay v high rents)...but the innovation will come. I don't think physical retail is dead at all though. If anything the weakness of physical retail is that MBAs stripped all the life out of it which left them open to competition from online. Online is just delivering the message that consumers have had enough.

EDIT: I will add that personally I think a lot of the stuff on Amazon is terrible. A lot of retailers in the 2000s were just innovating by going deeper into China, and closer to factories. Amazon just took that to it's logical conclusion. It works for some products, not for everything. Branded stuff also tends to be fake.

Re: 1 out of every 153 American workers is an Amazon employee

#123

Earlier quoted context omitted.

Why do you accuse them of suppressing wages when they lead the way to $15/hr, and when they literally spend money lobbying congress to raise the federal minimum wage? https://www.businessinsider.com/amazon-15-minimum-wage-lobby...

That’s a fair point. I see them as suppressing wages because they open warehouses in small towns, pay $15/hr and then work the person to death so they become dependent on that job. Amazon can totally dominate an area’s workforce and use that to drive wages and benefits down.

One more reason to decouple Americans healthcare from their employment ... and yes, I am a broken record =)

Re: 1 out of every 153 American workers is an Amazon employee

#124
post #120

Earlier quoted context omitted.

Lol, no a startup can't replace Amazon without themselves having all of those rents, and insurances, and reporting accountants and lawyers. Amazon has a logistics network that rivals the U.S. military's right now. You can't just "displace & disrupt" that with a trendy San Francisco office.

Why wouldn't you have said the same about Amazon and B&N in 1994?

I second this comment 1000x. Amazon beat Barnes, and then Walmart, and then Jet tried to beat Amazon. If the average Joe was able to give it a shot instead of just the Harvard elite, then we'd have many more chances

Re: 1 out of every 153 American workers is an Amazon employee

#125
post #109

Earlier quoted context omitted.

> Amazon pioneered hyperscale logistics efficiencies Actually, I believe that was Walmart as well: >TIMMER: I used to ask my class, I’m talking 1985, “Where is the world’s largest supercomputer?” And the correct answer was, “It’s at the Pentagon.” Okay. “Where is the world’s second largest supercomputer?” Bentonville, Ark. Home of Walmart. They used that computer to track every single item on every single Walmart she…

Ironically Barnes And Noble was also a significant computer user in the 80’s and 90’s. They put a lot of local bookstores out of business with superior inventory, prices, and generally being data driven. Then they were one of Amazon’s first casualties!

The pattern is that efficiency increases and hyperscale fell the previous incumbent. If the pace of innovation doesn't slow, Amazon may fall to the same forces.

Imagine a virtualized army of engineers that the AI or brain upload future may bring. Maybe that won't happen in our lifetimes, but it will happen at some point if we don't manage to nuke ourselves.

There are probably a handful of other trends that will cause instability and salients to develop in the fitness gradient.

Re: 1 out of every 153 American workers is an Amazon employee

#126

I’m torn badly with Amazon. After read The Everything Store, and what has been written all over the place, Jeff Bezos is a massive turd. Employees are horribly treated, wages suppressed, and all sorts of terrible and abusive practices. Then it comes time for me to buy something. I needed a new pair of size 14 sneakers. I drove to Adidas, Footlocker, dicks, and a few other stores but I just couldn’t justify $100 sneak…

That is the heart of “Aggregation Theory” from the stratechary blog. That these companies amass their market power by making their product so easy to use, they aggregate demand and are able to squeeze suppliers. They hold monopolistic power, but it is hard to argue that they “harm consumers”. Unlike old school monopolies, consumers go to aggregators because they want to, not because they are forced to.

Re: 1 out of every 153 American workers is an Amazon employee

#127

I’m torn badly with Amazon. After read The Everything Store, and what has been written all over the place, Jeff Bezos is a massive turd. Employees are horribly treated, wages suppressed, and all sorts of terrible and abusive practices. Then it comes time for me to buy something. I needed a new pair of size 14 sneakers. I drove to Adidas, Footlocker, dicks, and a few other stores but I just couldn’t justify $100 sneak…

I have the same feelings. I'm really fine with Amazon -- but I'd be much more fine by seeing them reduced via antitrust actions, with the goal of seeing more competition.

First, I'd like to separate AWS from Amazon the Bazaar. It's just too much control over _both_ the Internet (including all other e-commerce) and retail merchandise commerce.

It's like they own the railroads, the ports, the trucks, and the stores -- we've seen the Robber Baron movie already.

Re: 1 out of every 153 American workers is an Amazon employee

#128
It's bizarre. I'm not even american but Amazon is such a big part of my day to day life.

- At work we use AWS

- Amazon uses my company software

- My wife is a retailer and now sells on Amazon

- During work I use Twitch.TV as background noise (Amazon bought Twitch.TV)

- Last week, after work I was playing the new Amazon MMO game.

- After dinner I was watching The Office on Amazon Prime

Re: 1 out of every 153 American workers is an Amazon employee

#129
post #120

Earlier quoted context omitted.

Lol, no a startup can't replace Amazon without themselves having all of those rents, and insurances, and reporting accountants and lawyers. Amazon has a logistics network that rivals the U.S. military's right now. You can't just "displace & disrupt" that with a trendy San Francisco office.

Why wouldn't you have said the same about Amazon and B&N in 1994?

Amazon wasn't competing with B&N in 1994. B&N however (and Borders, and so many others) were.

Amazon in the 90s wasn't about "getting a book" but "getting a book via a computer, from a place with "all the books" and I don't have to drive".

B&N could have competed with that if they had understand what was happening, but I don't think they did.

bookshop.org appears to do so, but may be 20 years too late.

Re: 1 out of every 153 American workers is an Amazon employee

#130

I’m torn badly with Amazon. After read The Everything Store, and what has been written all over the place, Jeff Bezos is a massive turd. Employees are horribly treated, wages suppressed, and all sorts of terrible and abusive practices. Then it comes time for me to buy something. I needed a new pair of size 14 sneakers. I drove to Adidas, Footlocker, dicks, and a few other stores but I just couldn’t justify $100 sneak…

I was under the impression that Amazon's web hosting drove it's profitability.
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