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December 20, 2017 | Amazon “Basics” Well Beyond the Basics: World Domination?

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
Amazon keeps expanding its market share. Its “Basics” program and Amazon “Prime” explain why. Time to bust up Amazon?

Amazon launched a house brand, called AmazonBasics, in 2009. It was originally a way for Amazon to sell low-cost, generic versions of electronics accessories, like cables and plugs. Over time, Amazon has expanded its offerings dramatically, to the point where it’s difficult to see how the brand still refers to “basic” products.

Quartz trawled through the Internet Archive’s Wayback Machine, which archives websites throughout the history of the web, to see how many products Amazon has offered on its AmazonBasics landing page. The earliest archived result is for Jun. 8, 2013, when 252 products were listed for sale. Four and a half years later, there are currently 1,506 products for sale.

Amazon now offers a private-level version of just about everything it sells, from jeans and bathroom supplies, to bedsheets and lingerie—even books and movies. Amazon is on a path to be able to offer anything anyone wants for the lowest price possible, and with an integrated delivery network, as quickly as possible. Some consider that world domination; others, possibly a monopoly.

World Domination?

My Take

  1. If it’s good for the consumer, then its good for the economy and I am happy with it.
  2. Lower prices and faster service are both good for the consumer.

For the same reasons, we should abolish all tariffs and subsidies effective immediately, whether any other country does the same or not.

Fair Trade is Free Trade

Regardless, the same parrots protesting free trade will soon be all over Amazon.

Strange Advocates

Praise for free trade comes (or rather once did), from the strangest of places: Paul Krugman.

Once Krugman took up the liberal left cause, he lost his mind on many things.

The best position paper supporting free trade that I have seen comes from Ana Eiras, Senior Policy Analyst on International Economics, Center for Trade and Economics (CTE).

I discuss her article in Will Globalization Survive Trump?

Mike “Mish” Shedlock

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December 20th, 2017

Posted In: Mish Talk

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