Ordering on line and why Amazon is so successful

Discussion in 'Bad Dog Cafe' started by schmee, Apr 7, 2020.

  1. schmee

    schmee Doctor of Teleocity Silver Supporter

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    Been thinking about this for a while. Amazon is just a middle man, that's all really. So why do they dominate the market so much?
    Before I got Prime for the video etc, I bought Amazon if free shipping, or bought elsewhere for a better price. You can often get a better price elsewhere. The one thing I learned is that other companies, who are all complaining about going out of business, .... (like Sears etc) didn't do the job they needed to. The CEO's of those companies are directly responsible for failure and should have been fired long ago. The only thing CEO's are really good for is VISION.

    I worked directly for the CEO of a great smallish company. He had some great habits. One of which was to ask us "Why?"

    "We cant get it done by June 6th sir"
    "Why?"
    "Because we want to use the XYZ machine"
    "Why?"
    "We've always done it that way"
    "Then do it a new way!"
    etc etc

    Shopping on line at most places other than Amazon is fraught with issues slowing you down. Their web sites are slow. Their checkout is problematic,. Their search modes are troublesome.
    Amazon simply filled a niche' making it simple to shop and added free shipping. It wan't brain surgery. Anyone could have been competitive had Ownership/CEO's made it happen. Yet Bezos became the richest person in the world just being a middle man.

    For years Sears and other places never caught on. They weren't blind sided, they just refused to come to the party. If they had they would be in business and we all would have far more options.

    Yesterday I ordered something off Amazon and it literally took me 15 seconds. Occasionally I have bought things from Wal Mart on line... for a small price advantage. What a mess it is to do so! And even they are much better than places like Lowe's or Sears etc. Those two are nearly impossible on line.
     
  2. D'tar

    D'tar Friend of Leo's

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    I miss my Sears catalog!!!
     
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  3. David Barnett

    David Barnett Doctor of Teleocity

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    To make matters worse, Amazon's excellent functionality has been in place since pretty much the beginning of this century. So the competitors have had almost two decades to catch up, and haven't.
     
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  4. uriah1

    uriah1 Telefied Gold Supporter

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    Too bad. They fit into the perfect niche...for today..."I want it now"

    They won. Remember the old 60s adage where the tri-something, that states there will eventually
    just be (1 energy company, 1 food company, 1 retail company....
     
  5. Paulie_Boy

    Paulie_Boy Tele-Holic

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    Especially during the toilet paper shortage.
     
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  6. AlbertaGriff

    AlbertaGriff Tele-Afflicted

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    In the current climate, I actually fear that Amazon will have far greater competitive advantage at the end of this.

    And yes, you are absolutely right, especially where Sears is concerned, that whoever was leading the way failed spectacularly.
     
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  7. chris m.

    chris m. Poster Extraordinaire

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    I don't have a problem with them winning through innovation-- creating massive distribution centers, using all kinds of AI, using robotics. I do have a problem with them treating their workers very poorly and using monopolistic practices to discourage competition. For example, say you come up with a great product. About the only way you can possibly sell it in bulk is to become an Amazon Marketplace seller. But guess what? If your product takes off then Amazon will create a clone, competing product, and undercut you on price, and make sure that their competing product shows up first on customer searches. How is that even close to fair?
     
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  8. Djentleman Dan

    Djentleman Dan Tele-Holic

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    Not paying rent and maintenance and stuff for lots of massive brick and mortar stores is a bit of an advantage, too.
     
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  9. getbent

    getbent Telefied Silver Supporter

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    I wish Amazon sold house kits... like the 1800's Sears Catalog... I think it would be awesome to have a real craftsman, arts and crafts, victorian etc kit... buy some land, pour the footers etc... and you know, insert Tab A into Tab B... it would rule.
     
  10. mikestearns

    mikestearns Tele-Meister

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    Amazon's big advantage was their ability to operate at a loss, driving out the competition. Amazon.com, the retail side of it, isn't where Amazon makes its money. They make their money from Amazon Web Services, which currently runs about half the internet, so they can run the retail sales side at a loss and use predatory pricing to kill the competition.
     
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  11. uriah1

    uriah1 Telefied Gold Supporter

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    I remember when Sears, Monkey ward and Pennys all sold guitars and amps.
    penn.JPG
     
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  12. getbent

    getbent Telefied Silver Supporter

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    When they first started, they were a bookseller.
     
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  13. Sax-son

    Sax-son Tele-Meister

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    My problem with brick and mortar stores is that they never seem to have what I want. I can usually find what I am looking for online within minutes. Less time than it takes to find a parking place in some shopping centers. If you want my business, you better stock the product.
     
  14. DADGAD

    DADGAD Friend of Leo's

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    Amazon prime used to deliver the next day. Then it became two days. Now, it’s whenever they can get around to it. And the price of Prime went up.

    Sorry I sound bitter. We were expecting a food and toothpaste delivery by FedEx yesterday. They said it was delivered to our front door at 10:30AM. We were home and got no package.
     
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  15. mikestearns

    mikestearns Tele-Meister

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    Here's an example - around 2009 Amazon wanted to get heavier in the diaper business, however a site called diapers.com was doing pretty well for itself offering fast deliveries. They wouldn't sell, so Amazon just started selling diapers at a massive loss, shifting sales to Amazon, and also making investors weary of diapers.com. Eventually they sold, and Amazon launched Amazon Mom.

    When you sell on Amazon, you can sell as a Fulfilled By Merchant seller, meaning you ship your own stuff, or as a Fulfilled By Amazon seller, which they heavily push towards. You send your products to Amazon and they handle everything else. Your stuff is going to rank higher in searches than an FBM seller. Now, with the current situation, Amazon isn't allowing FBA merchants to send more product currently, screwing a lot of us over.

    At a certain level of sales, Amazon will offer to buy product directly, at which point your product becomes "Sold By Amazon" which will rank even higher in searches, but with one major caveat - they can dictate to you how much they will buy it for and how much they will sell it for.
     
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  16. Silent Otto

    Silent Otto Tele-Meister

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  17. getbent

    getbent Telefied Silver Supporter

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    Sam Walton used this strategy to decimate main street for years... Bezos learned from the master.
     
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  18. jrblue

    jrblue Tele-Afflicted

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    What's a "Sears"?
     
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  19. Ronzo

    Ronzo Tele-Meister

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    It’s not “fair”. But fair is not a concept that truly exists in business today.

    As my (former paralegal) lady said yesterday as we watched All Rise in lockdown, being a lawyer is about WINNING. Not justice. Not even advocacy. WINNING.

    So, too, with business. That’s why, when I worked for a firm that designed/specified Ethernet switches and Media Converters, I laughed when somebody in Sales would say, “We compete with Cisco.”

    I then pointed out that Cisco, at that time, was a 20 Billion USD company in Sales volume. They could squish us like a roach at any time they wished. My recommendation was to concentrate on the Media Converter market, where the (at the time) market leader was a 20 million USD company, and the #2 company in that market treated Media Converters as a forgotten, red headed stepchild. By doing so, and using Bellcore metrics for quality control and quality assurance, we eventually established a profitable niche. We were known as the company who’s Media Converters almost never failed, and with people that, if the product had a problem, could provide support and resolution on the very first call.

    All this to say that winning in most businesses is quite difficult. And leaders with not only VISION, but INSIGHT, are rare. In my opinion, both vision and insight are necessary. And the most successful people I know have both.
     
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  20. Danb541

    Danb541 Tele-Holic

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    Especially the lingerie section.
     
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