They provide dignified employment (as opposed to invisible work in a warehouse), they encourage entrepreneurship, they increase the tax base of a locality (by ensuring money stays within a local economy), and they contribute to local culture, community and character.
Amazon killing small businesses has sucked even more of the life force out of small towns, and that’s sad because said towns were already shellacked by the death of manufacturing.
It’s hard to argue with Amazon’s excellent customer experience, but the externalities involved are nontrivial and IMO outweigh the benefits.
I would also claim that keeping taxes in the local economy, while a very worthy goal, does not require the presence of small business. Big business can be made to support local community and culture. Just because the Walmart headquarters are outside of my small town, doesn't mean they don't have to pay a percentage of their earnings from the local warehouse to that community.
Also, minor grammar nit, you may have meant to use "shell-shocked" instead of "shellacked", but shell-shocked wouldn't fit the context you're going for either.
The small businesses you say were exploitative is because they were the only shot in town. i.e in a monopolistic position.
multiple small businesses result in a robust economy. if one goes bust there's plenty to keep providing a similar service. MSB's enable other auxiliary business look at Japan | German's economy for an example - mutliple suppliers etc. more employment. Guess the jobs the masses work at amazon - drivers, warehouse workers.
What amazon, provides could've been easily provided by a standardized api connecting different small merchants. some industries already do this - a flower shop needs roses, it can easily contact another flower shop to get roses to it's customers. everyone wins.
netflix yeah was a net positive. it's content so end of day, it was going to be aggregated in Ben Thompson's terms.
Uber is good for me as a consumer. But is it good for the driver, for the environment. if the US had robust public transportation, Uber wouldn't be necessary.
Amazon is substantially worse on most (if not all) of those metrics.
As an example: we killed tons of movie rental businesses by switching to Netflix. Life is much better now for everyone who isn't a movie rental store owner, which is almost everyone.
Small business doesn't mean good business and big business doesn't mean bad business. What matters to me is the net effect, and in most cases with Amazon, the net effect is very positive.
The same is true for Google, Uber, and Facebook and most big tech successes. The ratio of bad:good is just worse for some of them than for others, making it harder to judge.