> Why should I develop a new product when amazon can make a ripoff and use their scale to undercut me?

This is what patents are supposed to be used for. You create a truly innovative idea and receive a patent for it. Then some large manufacturer, that has the scale to produce your product far more efficiently than you ever could individually, contacts you asking to license your idea. Together you work out a fair price for the rights, you get money for your invention, they get profit, you both leave happy, and the customer gets the best of both worlds.