How Amazon pushes up prices all across the Internet (not-ship.com)

Article summary

Amazon charges sellers various fees, including a referral fee, fulfillment fee, and advertising fee, which can add up to roughly half of the sale price. These fees are passed on to consumers, and Amazon's Fair Pricing Policy prevents sellers from offering lower prices elsewhere. This policy can lead to higher prices across the internet, not just on Amazon. The US Federal Trade Commission is investigating Amazon's practices, arguing that they illegally maintain monopoly power.

Main themes

• Amazon fees
• price control
• monopoly power
• antitrust regulation
• market competition

What commenters say

• Amazon's fees and pricing policies are a form of regulation that stifles competition and leads to higher prices for consumers.
• The company's massive scale and logistics capabilities make it difficult for other businesses to compete.
• Some argue that Amazon's dominance is a result of underregulated capitalism, while others see it as a natural consequence of market competition.
• The idea that Amazon has a monopoly on certain markets is disputed, with some pointing to the existence of niche stores and other competitors.
• The concept of capitalism is being conflated with the idea of free markets, and the two are not the same.
• Amazon's advantages in logistics and delivery are not necessarily a result of its business practices, but rather a result of taxpayer subsidies and favorable tax treatment.
• The race to the bottom in terms of price and shipping speed has led to a situation where only the largest companies can compete.
• Market competition can still exist in a world with large companies like Amazon, as long as there are opportunities for niche players and innovators to thrive.