What started out as an online marketplace selling books and a few other products, has grown into one of the largest companies, doing business in a multitude of sectors worldwide.
Entrepreneur and author Jason Boyce attested to the growth of Amazon and some of their questionable business practices. He spoke from experience, as someone who used to do a great deal of business with Amazon, during today’s episode of America’s Work Force Union Podcast.
How did Amazon get so big?
The retail giant has perfected their market strategy by offering just about any good for a cheaper price and with more convenience to the consumer.
As a once in a generation company, Amazon managed to grow from a company operating out of a garage, to a global operation and arguably the largest company in the world. Jeff Bezos achieved this by creating a system reliant on others’ work, while also making it easier for sellers to expand their reach at a faster pace.
According to Boyce, it is the network of Amazon warehouses that has allowed the company to balloon. Sellers can pass fulfillment duties to Amazon, who offered speedy shipping, attracting more buyers.
How Amazon killed small businesses
Once large enough, Amazon was able to eat up the selling base of many small businesses. With the ability to remove listings using artificial intelligence, Amazon began inadvertently removing real sellers, as opposed to just fraudulent sellers. Paired with their slow acting seller support system, Amazon began offering little help to sellers.
Additionally, the COVID-19 pandemic aided Amazon’s growth. Their ability to offer convenience and safety in shopping from home allowed Amazon to see record growth.
Lawmakers have work to do to rein in Amazon
Outdated laws written for previous eras have allowed Amazon to tow the line of legality in their actions. Laws, such as Section 230, allow Amazon to claim no responsibility for defective or harmful products sold on the platform.
Boyce believes lawmakers should update these laws, which helped Amazon become the giant it is today, so similar tech companies can gain traction and compete.