Tag Archives: competition

Amazon losing market share

They are. Oh, not a statistically significant market share. But they are losing a good percentage of the share that is our household, and it would surprise me if we were the only ones.

Why?

It isn’t for moral reasons. We aren’t engaging in a partial boycott. Whether we should is a worthwhile question, but it’s not like Wal-Mart, where I haven’t knowingly shopped since I borrowed bought a breast pump I knew I would return. It’s not like that chicken place with the stupid name, where I wouldn’t eat there simply because the name is too stupid, even if they hadn’t come out as homophobes.

That’s not to say that this outcome doesn’t please me. It does. Amazon needs competitors. Amazon offers numerous shopping irritants:

  • Sellers like Wal-Mart hiding behind fake names. Nothing like getting a good deal and finding out you shopped at Wal-Mart.
  • Rating system is garbage, and vendors can easily get nasty reviews removed. Vendors have nothing to lose from nasty reviews.
  • Try calling Amazon for customer service. Hell, try emailing them for it.
  • Opaque tracking system clumsy to use. Seeming delays of a week to ship while, evidently, they move stuff around their network.
  • The known truths about what a hell it is to work there.
  • Delivery vans unmarked and pretty much just throw your stuff at the porch. And that’s if your Amazon delivery guy doesn’t turn out to be your porch pirate, as happened in one case near where I live.
  • Good luck getting an Amazon shipper to combine shipping for multiple items.
  • Amazon still thinks it’s a reasonable deal to ask you to pay, what is it, $90 or so per year just so that you can get free two-day shipping on all the stuff you buy from them.
  • Worse still, Amazon nags you without cease to sign up for this.
  • Still cannot block a bad shipper. There’s one book outfit there, a horrible vendor, and they have perhaps a dozen branch operations. It’s very hard to avoid them.

Of late, I’m buying routine items increasingly on Ebay, using Amazon to help identify/select them (such as small bits of hardware; just like many people use a brick-and-mortar, then go buy the thing online). Because:

The rating system may be hugely inflated, but no seller wants a nasty feedback. In my experience, most will fall all over themselves to avoid it, provided they have evidence of dealing with a reasonable person. And if you are a complete jerk toward a seller, s/he has a different remedy toward you: s/he can prevent you from seeing their merchandise in the future. So unless you want potential vendors to go away, it is in your best interest to be reasonable.

I have several times called Ebay for customer service. Using a telephone (ask your grandparents what that was). And received it. Other good parts:

  • Tracking: either it has a tracking number, or not. If it does, you can see where it’s going. If not then not. Wow! It’s almost as if that’s the way the concept is intended to work!
  • Doesn’t use Amazon delivery, thus doesn’t lead to unmarked vans out of which people leap desperate enough to work at one of America’s workplace gulags, and who quite often look like they would just as soon turn porch pirate. And near where I live, have done so.
  • Shippers will quite often combine shipping for multiple items within reason.
  • Not everything is up for auction. Much of what’s on Ebay is fixed price. In some cases, you can make a lower offer and it will be accepted.

Today was a good example. I needed some very large manila envelopes at a reasonable price. I didn’t know what the standard size was, but Amazon was a great place to look it up. When I was serious about buying, I went to Ebay and found the same thing, about the same price. It wasn’t even a contest. I would have paid a little more to buy it anywhere but Amazon.

I bought from the platform that used real shippers, cared about my feedback, and didn’t feed a massive inventory and shipping machinery that grinds human beings to submission.

Another example, on a later day of blog post composition. My wife needed some supplies she always uses. I went to Amazon to look up what their people wanted for these supplies. When it came time to make an actual purchase, I bought on Ebay. The deal was much better.

I got a volume discount. I won’t have to deal with sketchy-looking Amazon delivery vans. Everything was better.

Do you not now see what was the point of Amazon Prime? It’s a brilliant strategy provided one is dealing with an ovine people who love the meth that is ‘free shipping.’ Get people to pay an annual fee, and they will feel compelled to shop at Amazon to take advantage of the shipping. It’s like a ‘loyalty’ card at a coffee place, except that coffee places don’t expect you to pay an annual fee and don’t propose to automatically renew you by charging your credit card unless you cancel. Amazon Prime is the worst deal going and it has the effect of roping you into acting to your disadvantage. They would not offer it, and pressure everyone constantly to sign up for it, if it were not to their profit. It is to your disadvantage.

Yes. You are advantaged by buying only what you need, and by shopping for the best value. Amazon is advantaged by you buying there even if you do not need, and by you not comparison shopping.

I never take any of those ‘loyalty’ cards because it’s obvious that their intent is to get me to shop at a given venue more consistently–and in the case of mag-strip cards, to compile a nice dossier on my shopping. The employees don’t understand why I won’t just do it to get 10% off. I explain, as patiently as is in my power, that the card’s goal is to induce me to shop there; that my goal is to shop where is most advantageous for me. Thus they have their goals and I have mine, and they are mostly opposed. I can tell by the look in their eyes that, in spite of how hard they work for what little they are paid, they never thought of that. Their eyes say what their mouths won’t: whatever, man, you should just take the discount.

I wish they would blurt that out. I might rejoin: “Has it ever occurred to you that one reason for poverty is poor attention to money management?”

The vendors have their goals and problems. The consumer does not need to own either. I don’t see the company stepping up to support my goals and they aren’t owed support for their own.

At heart, they flat do not give a damn what I think. As Amazon does not.

Somehow, I’m not supposed to adopt the same attitude.

We saw it with IBM. We saw it with M$. When a company reaches complete market dominance, it tends to stop caring what the public thinks of it.

It never quite seems to process the fact that this sword cuts both ways.

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