What’s not to like about one-stop online shopping? The only thing you might have to worry about is that in the future you will not have any shopping centers, strip malls or corner stores where “everybody knows your name.” Gone will be the “social network” of shopping that involves interacting with real people in real time and space (bricks and mortar). From some economists and business experts, there is a growing concern that Amazon’s tremendous growth and market dominance could increasingly stifle competition and erode jobs. This is the real threat that Amazon poses as viewed by business researchers and analysts.
“To consumers whose seeming every wish can be fulfilled by the more than 400 million products available for sale on the site, its scope can seem enormous. Amazon sells 52% of all books (print, electronic and audio) in the United States. Forty-three percent of all online commerce goes through Amazon. It’s got 45% of the cloud computing market, meaning it’s the single largest provider of infrastructure that runs thousands of popular websites. It’s not in banking and insurance, though analysts say that wouldn’t be a stretch.” Consumers enjoy low prices, while suppliers get squeezed.
And you always thought that people with their heads in the clouds were out of touch. Seems like that might be a good place to be these days if you are in business.