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 How Amazon Gains Control & Domination

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 How Amazon Gains Control & Domination

https://wolfstreet.com/2019/12/25/how-amazon-gains-control-domination/

and theres the sub layer of drivers reliant on amazon & the micro delivery co's, where the rug can be pulled at any time 

Sorry we missed you film trailer

It's long overdue to break up these monopolies / duopolies. Imo, many amazon marketplace sellers are busy fools, hardly making any money, yet feeding the monster.

The damage to the Uk economy is incalculable, local money sucked offshore without paying much tax.

Amazon's UK tax bill for services wing rises just £10m despite £358m jump in revenues

https://www.telegraph.co.uk/technology/2019/09/03/amazons-uk-tax-bill-rises-just-10m-despite-358m-jump-revenues/
 

Quote

So, to gain control and bring down costs, it has to become the number 1 gorilla in the logistics business and surround itself by thousands of small logistics companies that it totally controls and that are eating the lunch of today’s giants, UPS and FedEx. And that’s what’s happening at an astounding speed.

Amazon didn’t invent ecommerce. But from day one, it has been pushing the envelope in every direction to make itself the dominant player in just about all related fields, some high-tech, some low-tech, from cloud computing to delivery, to bring down costs and gain control.

To do this, Amazon is helping create thousands of smaller companies. It’s enticing potential entrepreneurs with attractive entry deals. These companies have non-unionized drivers, and they have no fancy corporate headquarters and overhead, and they can operate for less, especially if they can use Amazon’s purchasing power for vehicles and insurance, which Amazon has set up for them to do.

The first time I noticed it enough to where I chatted up a delivery driver was in early 2017. Amazon packages used to be delivered to our building in San Francisco by the US Postal Service, by UPS, or by FedEx. But then I noticed that Amazon packages were being delivered by people in regular clothes. Some of them came in unmarked vehicles. Others were marked with Amazon logos.

One of them pulled up in a small white van with an Amazon logo. And he wore a vest with an Amazon logo. So, I asked him if he worked for Amazon. He said he worked for a delivery company with about 20 vans in Oakland that’s delivering for Amazon.

At the time, Amazon was setting up two programs in select cities, for which it was actively recruiting gig workers and “entrepreneurs.”

One program was “Amazon Flex”: Amazon billed it as a way to “make $18 to $25 per hour delivering packages with Amazon.” It was app-based and allowed gig workers to choose a block of time during a day in which to pick up and deliver packages. The pick-up location could be an Amazon facility or “a store or even a restaurant,” it said. Gig workers could use their car or bicycle or whatever. And they were contractors, paid by Amazon.

The other program was dubbed Amazon Delivery Providers. “Whether you have one van or a fleet, our volume and your business could be a great match,” Amazon said at the time.

They’d pick up at a local Amazon facility. They’d use Amazon’s routing technology. And off you go, making gobs of money, or so you hope, delivering packages for Amazon. The entrepreneurs, so the owners of these little delivery companies, contracted with Amazon, and received their revenues from Amazon. And they paid their own drivers – like the guy I’d chatted up.

All of them were doing the work that employees of the US Postal Service, FedEx, and UPS used to do...

And once Amazon has the system up and running to the full extent, the squeeze invariably begins. It will start in small items here and there, paying for services that used to be free, and the special deals will get less special, and the amount Amazon pays for deliveries will get squeezed – because now that it has control, Amazon will proceed with the goal: bringing down delivery costs of ecommerce. And the way to do this is by squeezing the delivery network.

The merchants that use Amazon’s platform and that have built thriving businesses relying on the platform, they’ve been finding out the same principle: the squeeze is on and it’s eating into their business and profits, and if they don’t like it, they have trouble moving on.

Giants like Nike, they can, and do, pull their merchandise off Amazon and use their own established websites and sales channels to continue, but mom-and-pop merchants, whose business has become dependent on the Amazon platform, they’re sitting ducks, waiting to be squeezed. This is now playing out in full force...

Amazon has been pushing the envelope in every direction from day one. It has upended brick-and-mortar retail. It has upended cloud computing that ecommerce is based on. It is muscling in on online advertising. It is leading in placing its spy-devices into homes, such as its Alexa smart speaker. It is now upending the established logistics system....

None of this happened overnight. Each took many years to reach critical mass. But Amazon’s last-mile delivery system has reached critical mass in just three or four years and appears to be progressing faster than any of its other initiatives. And it’s a logical expansion of Amazon’s drive to cut costs and gain control.

 

Edited by Saving For a Space Ship

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i knew something was wrong when i got a phone repair kit of 9 diffrent items (screwdriver, tweezers, spatulas etc) in a presentation case. delivered to my door from china in 5 days for 99p    thats the item with free delivery.      i even watched the guy get out the van and deliver it before driving off.   how is this possible. 

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3 hours ago, jimmy2x3 said:

i knew something was wrong when i got a phone repair kit of 9 diffrent items (screwdriver, tweezers, spatulas etc) in a presentation case. delivered to my door from china in 5 days for 99p    thats the item with free delivery.      i even watched the guy get out the van and deliver it before driving off.   how is this possible. 

In China a 1 bedroom apartment outside City Centre is about £250 per month (2000~ Yuan) and £1 is worth 9.04 Yuan. 99p is 252nd of £250 months rent and 606th of UK rent of £600 per month.

Also if you are a member of Amazon Prime Amazon makes a loss on prime overall and many Chinese sellers do not pay and therefore don't factor VAT to their prices so that's a 20% advantage on price also.

Edited by Arpeggio

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3 hours ago, jimmy2x3 said:

i knew something was wrong when i got a phone repair kit of 9 diffrent items (screwdriver, tweezers, spatulas etc) in a presentation case. delivered to my door from china in 5 days for 99p    thats the item with free delivery.      i even watched the guy get out the van and deliver it before driving off.   how is this possible. 

How does anyone value, value.....what makes anything worth what anyone is prepared to pay for it.....very many items are so over priced only a few would ever pay the price. ...Something else of far greater value, of better quality and would give a greater pleasure over a longer period of time will and does cost a lesser amount......you pays your money you takes your choice.......what anything costs has nothing to do with how good it is..... frills, bows and packaging......can cost a fortune.;)

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22 hours ago, Arpeggio said:

In China a 1 bedroom apartment outside City Centre is about £250 per month (2000~ Yuan) and £1 is worth 9.04 Yuan. 99p is 252nd of £250 months rent and 606th of UK rent of £600 per month.

Also if you are a member of Amazon Prime Amazon makes a loss on prime overall and many Chinese sellers do not pay and therefore don't factor VAT to their prices so that's a 20% advantage on price also.

250 month is not much less than many northern towns for a flat. i think china is starting to creak under its own boom. its got huge debts and everywhere eventually has thhat allmighty crash, not a bad thing it helps rid the economy of the froth. 

but the 99p also has to include what the guy in the uk gets to deliver that item. how much will this actually be. it cant be more than say 40p and if this is what competitors to royal mail are getting to deliver a package the royal mail is completely stuffed and all those wanting to strike should really be thanking god they aint that guy doing spot deliveries for 40p a time. 

 

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On 26/12/2019 at 16:11, winkie said:

How does anyone value, value.....what makes anything worth what anyone is prepared to pay for it.....very many items are so over priced only a few would ever pay the price. ...Something else of far greater value, of better quality and would give a greater pleasure over a longer period of time will and does cost a lesser amount......you pays your money you takes your choice.......what anything costs has nothing to do with how good it is..... frills, bows and packaging......can cost a fortune.;)

Wilde's old saw: "A cynic knows the price of everything and the value of nothing".

But the value is what it means to you, the price is what someone else is prepared to pay for it. We all have things of immense value, that have little "price" - and whats wrong with that?

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3 hours ago, jimmy2x3 said:

but the 99p also has to include what the guy in the uk gets to deliver that item. how much will this actually be. it cant be more than say 40p and if this is what competitors to royal mail are getting to deliver a package the royal mail is completely stuffed and all those wanting to strike should really be thanking god they aint that guy doing spot deliveries for 40p a time.

No idea. Certainly not worth 40p if its the only place on the road to deliver to. Do you know what delivery company it was and are they still in business?

The irony of competition; it's more economical for one company to do 10 deliveries on one road than several different competing companies making 1 - 2 deliveries each, of a total 10 deliveries, on that road. This would differ for higher population density but would still mean there's only enough room for so many companies before it gets uneconomical.

I suppose Royal Mail might have an advantage in those terms. They make many of the deliveries to my place and I think something like the one you are talking about would probably come through them.

Edited by Arpeggio

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I read about the fragmented dutch postal service, with individual workers being expected to take letters back to their own flats and sort them out on the bed. No sick pay, holiday benefits, no union because you dont meet any other workers. It will be like that. 

USA used to view competition as vital to capitalism, and had laws to encourage such. How can you have companies like amazon and uber, whose whole business model is to run at a loss for years, in ubers case using debt, until competition is wiped out, then when a monopoly,  ratchet up prices? 

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14 hours ago, dryrot said:

Wilde's old saw: "A cynic knows the price of everything and the value of nothing".

But the value is what it means to you, the price is what someone else is prepared to pay for it. We all have things of immense value, that have little "price" - and whats wrong with that?

Nothing wrong with that........but with homes price and value have no correlation apart from supply, demand and access to growing amounts of ever cheaper money over lengthening terms.......taken into account when paying a certain price will always be who at a later date will be willing or will be able to pay a higher price........different to consumerbles when branding and advertising plays a far greater part not a resale value, free credit helps sell stuff, especially the not so easy to sell, old stock or of high supply or low demand.....with homes you could say branding is places and types/styles, size does not always matter......less can be more.;)

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Village has 100 homes......what is better 70 or 80 cars all going out to solely shop and for food, using expensive  fuel, possible parking rent fees, the time it takes, pollution it may create, each week......or a few deliveries by a few vans........free delivery on a couple of days a week at a certain times....... special specified date and time extra delivery to pay.

Very many like the choice of freedom to move and shop where they want, when they want, how they want....buying what they want and need.....best to have freedom of all the choices.;)

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Bit too tinfoil, lizard overloads...

Amazin lucked out, being able to gufypt consumers its equity holders returns, providing products n services below cost/low margin.

Amazon will pop as soon as it has to make better margins.

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16 hours ago, nothernsoul said:

I read about the fragmented dutch postal service, with individual workers being expected to take letters back to their own flats and sort them out on the bed. No sick pay, holiday benefits, no union because you dont meet any other workers. It will be like that. 

USA used to view competition as vital to capitalism, and had laws to encourage such. How can you have companies like amazon and uber, whose whole business model is to run at a loss for years, in ubers case using debt, until competition is wiped out, then when a monopoly,  ratchet up prices? 

Dutch??

Nlands has very high social regulation.

I call bs.

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4 hours ago, spyguy said:

 Amazon will pop as soon as it has to make better margins.

It’s like a breath holding competition except instead of air it’s profit. Amazon and Flipkart are totally blue in the face while staring at each other in India. So many companies are like this, like Twitter or Yelp with 0 profits.

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45 minutes ago, Will! said:

Isn’t Amazon retail just a loss leader for AWS?

I dont think the customers buying books also buy cloud servves.

For all tge great company comments, amazin is a bit of a fup. 

You can see aws being split out - forcibly. Then rest going down the crapper.

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Question:.....Any firm in general, If more and more people are being employed as if they were self-employed, the hours are not always regular or can be controlled, no sick pay, no holiday pay.... pay day pays an irregular sum of money with few in work benefits apart from the social interaction with other staff members who might be good at cake making and generous with their in work sharing principals......Irregular income, insecure working practices......how can people manage their money on a tight budget when have regular bills, taxes, rent, debt and interest that requires paying?......will it be the state, local gov and charities having to provide for the safety net, thus indirectly subsidising employers? ;)

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How can people buy more stuff if they are not paid enough to buy more stuff.....they could borrow more then not pay it back.....there are no debtor prisons, I don't think the shops care if the debt is never repaid....once they have sold it their job is done for that quarter.....spending today tomorrows hopeful but unknown earnings.;)

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royal mail has one chance and its a huge one. 

they need to use there vast nationwide network of depots and shops as pick up points for parcels. thus cutting out the most expensive final step of the system. if they do this they will knock out the competition. they need to offer a half price pick up from the post office service. only they have the network in place and the public perception of security behind it to do it. they could put the letter buisness down to 3 days a week, charge the package reciever a extra fee if they require if delivered to their door. they could lay off half their workforce, increase profits,. there is no call now for a every day letter service and this service needs to be done at a huge premium like a telegraph service. offer it but charge right for it. 

the world has changed and royal mail workers can squeal all they want efficiency is coming

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I don't think post offices are set up or have the storage for all the extra issues to be pick up points.....they are now being used as a pay in and pay out banking service for various high street banks that have closed their doors to the public, long queues.....not everyone has transport to pick up parcels, many you couldn't lift let alone drag home on the bus or bike.😉

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1 hour ago, winkie said:

I don't think post offices are set up or have the storage for all the extra issues to be pick up points.....they are now being used as a pay in and pay out banking service for various high street banks that have closed their doors to the public, long queues.....not everyone has transport to pick up parcels, many you couldn't lift let alone drag home on the bus or bike.😉

many are big enough, im not saying they can just jump in tomorrow and hurahhhhh. but tell me who else could achieve this. they are set up for holding parcels and are allready set up and local, symantics aside 

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2 hours ago, jimmy2x3 said:

many are big enough, im not saying they can just jump in tomorrow and hurahhhhh. but tell me who else could achieve this. they are set up for holding parcels and are allready set up and local, symantics aside 

Some other places do this already mind. Such as Argos being a pick up point for eBay. Tesco too, although not sure if Tesco do that for anyone except their own product sales.

Food retailers might have an edge on this because many go there once per week or so anyway, preferring to pick their food in person. They have storage and usually have parking spaces too, which Post offices don't usually have. Perhaps post offices should get in on that as the delivery network for pick up points.

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On 28/12/2019 at 10:27, spyguy said:

I dont think the customers buying books also buy cloud servves.

I do, though I don't use Amazon.

But I think the point was that Amazon's profit comes from 'cloud' and the store is pretty much just a loss-making hobby. As you say, if they were forced to split off the 'cloud' business, the rest of the company would probably have to shut  down, or raise prices substantially.

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On 28/12/2019 at 09:28, winkie said:

Village has 100 homes......what is better 70 or 80 cars all going out to solely shop and for food, using expensive  fuel, possible parking rent fees, the time it takes, pollution it may create, each week......or a few deliveries by a few vans........free delivery on a couple of days a week at a certain times....... special specified date and time extra delivery to pay.

Very many like the choice of freedom to move and shop where they want, when they want, how they want....buying what they want and need.....best to have freedom of all the choices.;)

What's better is a shop in the village people can walk to.

You won't sell a future to me that consists of people hardly ever leaving their homes - like most supposedly "positive" visions of the future it sounds dystopian.

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