Re:Amazon getting into PC components is the wrong answer to ...
by Nevermark on Friday March 03, 2023 @06:37PM
(#35016472)
> Unless component makers want to get absolutely fleeced by Amazon undercutting it with knock-offs, they need to offer customers an alternative that Amazon can't undercut.
How is a small company supposed to able to sell at a comparable price to Amazon? Or reliably develop uncopyable tech advantages for products that are already commodities?
1. Amazon can source parts and manufacturing services in larger scales, at better prices.
2. Amazon doesn't lose margin to advertising, marketing or sales partners.
3. Amazon can give its products greater visibility than even the highest paying advertiser on their site.
4. Amazon will get customers at greater scale, amortizing fixed costs like design and other overhead across more sales.
There is a reason Amazon is an antitrust target. Their vertical integration tilts everything their way decisively for anything they can decently copy.
How is a small company supposed to able to sell at a comparable price to Amazon? Or reliably develop uncopyable tech advantages for products that are already commodities?
1. Amazon can source parts and manufacturing services in larger scales, at better prices.
2. Amazon doesn't lose margin to advertising, marketing or sales partners.
3. Amazon can give its products greater visibility than even the highest paying advertiser on their site.
4. Amazon will get customers at greater scale, amortizing fixed costs like design and other overhead across more sales.
There is a reason Amazon is an antitrust target. Their vertical integration tilts everything their way decisively for anything they can decently copy.