How does Amazon have a huge impact on the global economy?



Amazon, the world's largest e-commerce site,

has more than 200 million members of Amazon Prime , a paid service, and is said to have a major impact on the world economy. Amazon is 'distorting the economy,' claims Matt Stoller , a non-profit organization, the American Economic Liberties Project.

Amazon Prime Is an Economy-Distorting Lie --BIG by Matt Stoller
https://mattstoller.substack.com/p/amazon-primes-free-shipping-promise

Google, Amazon, Facebook, and Apple, which dominate the global economy, have been sued for violating antitrust laws, all of which have increased their profitability more strongly than ever before. In particular, Amazon 'set high sales commissions for products and prohibited third-party sellers from selling at lower prices than Amazon on other platforms,' so 'unreasonably raised the price of products, It has just been sued by Attorney General Karl Racine of Washington, DC on May 25, 2021 for 'deterring innovation.'

Amazon is accused of 'unreasonably raising market prices'-GIGAZINE



Mr. Stoller said that one of the reasons why the proceedings are considered important is that 'Amazon Prime', which is the key to Amazon's maintenance of superiority over other retailers, is pointed out by Mr. Racine. It is pointed out that it is covered by 'high fees'. Mr. Stoller said that if the high fees charged to sellers are eliminated, services such as 'free shipping' and 'Amazon Prime Video' provided as Amazon Prime services may collapse. I'm pointing out.

'Free shipping' is important for retailers operating online, and Amazon CEO Jeff Bezos understands that 'the number one problem for consumers is shipping.' It was said that. 'One-third of consumers look at shipping charges and remove items from their carts, so Amazon Prime helps people get used to buying on Amazon and not have to worry about shipping charges,' said Bezos. Has begun to develop. '



Bezos' remarks were revealed in Mr. Racine's proceedings. In the most important text of the proceedings, Mr. Stoller said, 'Thanks to FBA, Amazon Marketplace and Amazon' by Bezos CEO on

Amazon's distributor program 'Fulfillment by Amazon (FBA)', which is the basis for building free shipping. The prime was closely tied. '

To think about why FBA is the glue that connects Amazon Marketplace to Amazon Prime, it's important to keep in mind that logistics systems are far more expensive than the membership fees collected by Amazon Prime in the first place. There is. 'Amazon has set third-party sellers high fees, which can be as much as 40% or more of the item price, in order to cover the high shipping charges, effectively forcing the sellers to pay the shipping charges,' Stoller said. I'm pointing out. 'The Amazon Prime mechanism, which forces Amazon to include shipping charges in the product price and claims' free shipping 'even though the product price includes shipping charges, is the mechanism and basics of money laundering. Is the same. '



From 2014 to 2020, Amazon charged third-party distributors from $ 11.75 billion to over $ 8 million. .. 'Third-party sellers pay Amazon 21% of Amazon's revenue,' Racine points out.

Products sold on Amazon are sold at lower prices than other platforms, but this is also due to the 'most favored nation' provision that Amazon imposes on sellers. This provision does not allow sellers to sell products on other platforms at prices lower than Amazon Prime, making it almost impossible to buy the same products at prices lower than Amazon, which effectively dominates the online market. I will.

'For most consumers, Amazon Prime seems to offer a great'free'service, but consumers indirectly pay for Amazon Prime content by buying merchandise,' Stoller said. Amazon Prime is a'giant lie'to hide the highs that are pushing the economy as a whole. '



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