Friday, July 1, 2011

"Day One" for Jeff Bezos is Grim News for Small Retail

Jeff Bezos says that it is "Day one," in the digital revolution during an interview posted at the website worldcrunch.com.   We can go with the spirit of that--things really are beginning.  But it doesn't bode well for most small businesses. In this revealing article, we see exactly how ravenous the company is when he lays out his vision in a very simple way.

Here is the most telling response Bezos gives to a question related to company growth:

"In most of the categories, the most we’re doing is adding depth. We’re in most of the major categories already and we’ll continue to roll things out. Our focused areas are on electronics, apparels, some consumable items. And in media, we really focus on digital, and that’s true for books but also for video, music, audio books, video games... So we sort of have our media business undergoing a digital transformation that we’re working very hard on. In our physical products business, there are still so much opportunities to continue to add selection inside existing categories."

He wants it all.  And it's hard to blame him.  He has a successful business model that has brought him great riches.  We can't begrudge him that.  However, it isn't a level playing field. Given Amazon's unfair advantage in that it doesn't pay local taxes, the tide is already in his favor and will likely continue down that path.  Unless we are responsible and choose not to buy from Amazon.  His responsibility is to grow his company.  Ours is to decide whether or not we want to support a business that has an unfair advantage over local retailers, who help pay the taxes that build roads and schools in our community.  We can save a little now when we buy Amazon, but will pay much more later.

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