The Amazon tax
seths.blog
The Amazon tax
1–10 of 731 posts
Re: The Amazon tax
#2This is sad, but true. And true for other giant companies, not just for Amazon - Meta/Facebook is another good example.
What can we do about it? Not much. This is something that happens when in a "free" market you have a near monopoly, and the antitrust is too weak to even try to fine these companies.
One might think that there's a "conspiracy" of a few powerful people / billionaires, but I don't believe it it the case. Individuals are driven by results, profits, targets, metrics, etc... The company as a whole responds to shareholders, not the small retail one but large funds and such that own a significant stake in these companies. They want to make money. They lobby the government to make sure that quasi-monopolies like this one can go on undisturbed.
I don't blame Amazon. I think this is a limitation of the (supposedly) free-market society in which we live. By the way, it is not a free market when antitrust does not work, or when you need to bail-out banks, etc.
I admire and respect Seth Godin (I even met him once, years ago), and I would love to see if he had any idea of how to solve this.
Re: The Amazon tax
#3[dead]
Re: The Amazon tax
#4Principal agent problem combined with a monopoly, what could go wrong?
In the end, we as a society value convenience more than global optima. So we will always land in some local optima. We deserve it.
Re: The Amazon tax
#5Amazon is almost completely unusable for search at this stage. I think perhaps 3/4 of the results are sponsored ads. Three in four. Trying to find a good deal on a product, even if you know precisely what you're looking for, is a real headache of trying to dodge the advertisement minefield.
Re: The Amazon tax
#6Whats going to be hilarious is if brick and mortar companies become popular again because of the painful U.I., scammy companies, and broken search of Amazon.
Re: The Amazon tax
#7Principal agent problem combined with a monopoly, what could go wrong? In the end, we as a society value convenience more than global optima. So we will always land in some local optima. We deserve it.
Speak for yourself haha. Unconscious and unexamined behaviors hardly constitute a value system.
Re: The Amazon tax
#8See also: ads for apps in app stores.
These companies effectively monopolize app distribution on their platforms and then make discovery so poor that developers who try to sell apps in their stores must pay for ads in those same stores.
Re: The Amazon tax
#9This is sad, but true. And true for other giant companies, not just for Amazon - Meta/Facebook is another good example. What can we do about it? Not much. This is something that happens when in a "free" market you have a near monopoly, and the antitrust is too weak to even try to fine these companies. One might think that there's a "conspiracy" of a few powerful people / billionaires, but I don't believe it it the ca…
> What can we do about it? Not much.
You should do what I do: look for someplace else to buy from first. Amazon has "everything" - if you can find it. However there are usually small sellers of that niche (often niche.com) where they know something about the product and will direct your to the best one without adds. The smaller/weirder the niche the more likely this seller is to be helpful. You get to support "the little guy", and get a good product for a good price. Even if Amazon is cheaper, the smaller store is still the better value because you get a good product.
Re: The Amazon tax
#10> They know the best-reviewed, least-returned, best-priced model. The only purpose of the ads is to get you to pick an air fryer that isn’t that one
Thoughtless take. Say you've just invented a better looking, better functioning, cheaper air fryer. How do you expect to reach your first customers if not through ads? Sell it to your friends? That's even more invasive and annoying.
People's urge to rid the world of ads is similar to our urge to rid the world of "middlemen".
It's natural, and I get it (ads are annoying), but this is a forum where I expect people to think a little more deeply about the economics and second order effects of things.