I have Something To Say About The Downside Of Amazon

Byweb_designer

How Amazon Crushes Small Businesses and Retailers

Amazon started by undercutting prices to dominate retail, but now that it’s effectively a monopoly, it’s raising prices and squeezing competitors—hurting mom-and-pop stores, independent sellers, and even major retailers. Here’s how:

1. Amazon Undercuts, Then Raises Prices Once Competitors Are Dead

• Amazon sells products at a loss or close to zero profit to drive competitors out of business.

• Once enough retailers are eliminated, Amazon hikes up prices since there’s no real competition left.

• Studies show that Amazon prices are no longer the cheapest, yet people still assume they are.

Example:

• Amazon sold books at unsustainable prices, driving many local bookstores out of business.

• Now that those bookstores are gone, Amazon raises book prices while taking a massive cut from authors and publishers.

2. Forcing Small Sellers to Use Amazon’s Platform—Then Exploiting Them

• Small businesses are forced to sell on Amazon because it dominates online shopping.

• Amazon charges massive fees (up to 45% of every sale!) on third-party sellers.

• Sellers can’t leave Amazon, because if they do, they lose access to millions of potential customers.

Example:

• A mom-and-pop shop selling handmade goods online must use Amazon to reach customers.

• Amazon then copies their best-selling product, makes its own Amazon-branded version, and prioritizes its own product in search results.

• The original seller loses business, while Amazon profits from the idea they stole.

3. Punishing Sellers for Selling Cheaper Elsewhere

• If a seller offers a lower price on their own website or another platform, Amazon hides their listings or kicks them off.

• This keeps sellers trapped in Amazon’s system, unable to offer competitive prices elsewhere.

Example:

• A small electronics retailer lists a product for $50 on Amazon and $45 on their own website.

• Amazon penalizes them, removing the “Buy Now” button from their Amazon listing, killing their sales.

• The retailer is forced to raise prices everywhere, just to stay on Amazon.

4. Controlling Warehouses & Supply Chains to Crush Competition

• Amazon buys up warehouses, trucking networks, and shipping companies, giving it complete control over logistics.

• Small businesses & competitors must pay Amazon for fulfillment or risk slow, unreliable shipping.

• Other retailers can’t match Amazon’s speed, making it harder for them to compete.

Example:

• Walmart and Target struggle to match Amazon’s delivery speeds.

• Meanwhile, Amazon deliberately slows down shipments for non-Amazon sellers, making their competitors look bad.

5. Using Predatory Advertising & Fake Discounts

• Amazon advertises fake “deals”, tricking people into thinking they’re getting a bargain.

• It prioritizes ads over organic search results, forcing small sellers to pay more just to be seen.

• Prices go up over time, but people don’t notice because they still believe Amazon is the cheapest option.

Example:

• Amazon raises the price of a $100 product to $120 and then puts it “on sale” for $99.99.

• The discount is fake, but people buy it because they think they’re saving money.

6. Killing Local Businesses & Mom-and-Pop Shops

• Local businesses can’t compete with Amazon’s pricing, speed, or marketing reach.

• Once Amazon kills off local competition, it reduces selection and raises prices.

• Communities suffer when small businesses close—fewer local jobs, fewer unique stores, and more reliance on corporate giants.

Example:

• A neighborhood bookstore closes because customers buy books on Amazon instead.

• After local stores shut down, Amazon raises prices, knowing people have no other options.

• The community loses a gathering place, jobs, and tax revenue.

7. Amazon Is No Longer the Cheapest Option, but People Are Trapped

Now that Amazon dominates online shopping, prices are creeping up across the board:

• Essential goods are more expensive than Walmart, Target, or local stores.

• Fees for third-party sellers keep increasing, meaning higher prices for consumers.

• Amazon prioritizes its own brands, pushing out independent sellers who offered better deals.

Example:

• A product might be cheaper at a local store, but because of Amazon’s free shipping and convenience, people still buy it online—paying more than they need to.

The Bottom Line: Amazon Built a Monopoly, and Now It’s Exploiting It

• Amazon destroys competition, traps small businesses, and raises prices once it has control.

• People keep using Amazon out of habit, even though it’s often not the cheapest or best option anymore.

• Small businesses are dying because they can’t escape Amazon’s grip.

Amazon isn’t a low-cost retailer anymore—it’s a monopoly that manipulates prices and controls markets, crushing small businesses in the process.

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