Hur påverkar amazon
Amazon Effect: Definition, Statistics, Impact on Consumers
The Amazon effect refers to the impact of the ecommerce marketplace on the traditional brick-and-mortar business model. In , Americans spent a staggering $ trillion on ecommerce, with. Amazon got its start in , selling books to online pioneers and, at blistering speed, adding everything from engagement rings to lock boxes for kids' mobile phones until it became "the everything store. Add the convenience of speedy delivery to your doorstep, and customers have rewarded Amazon with open wallets.
Directly and indirectly, the company has an impact on inflation, wages, and the profits of businesses large and small. Today's Amazon is responsible for If you consider the macro picture, consumer spending anywhere is a good thing for the economy because it contributes to the gross domestic product GDP. That said, spending on Amazon is not significant enough to tip the GDP scale. Amazon disrupted traditional retail and accelerated the demise of struggling players.
Its focus on online sales means its overhead costs are significantly lower than those of big-box retailers. That gives Amazon the edge to undercut its rivals on prices and operate on a thinner profit margin. Ideally, low unemployment is accompanied by wage growth, which in turn fuels inflation as companies pass on the costs to consumers.
That is the logic of the Phillips curve , but Amazon has disrupted that norm as well. Competition forces prices lower and limits the ability of companies to pass on any wage increases to consumers. Those worries were heard in the wake of the Whole Foods acquisition in Chicago Federal Reserve President Charles Evans noted that mega-mergers can put downward pressure on inflation.
Jeff Bezos ledarskapsprinciper och deras inverkan på Amazon
By mid, Amazon employed approximately 1. It's a lot of people, but it's significantly less than rival retailers with a big real-world imprint. Walmart WMT employs about 2. Amazon also engages many third-party contractors and companies for tasks like deliveries. Those people go door-to-door, dropping off Amazon packages. However, they are not employees of the company. Does that matter? Yes and no. It creates jobs. On the other hand, hiring contractors helps the company skip the costs of employee benefits.
Another angle of the jobs conversation is how many jobs Amazon is eliminating as big chains like Sears, Toys 'R Us, and Pier 1 Imports bite the dust. Consider how much the company is hurting other retailers, forcing them to shutter stores and cut back on costs. Job gains at Amazon may not contribute to overall employment. Amazon has been criticized for its low pay for employees, particularly in its vast network of warehouses, and to give it credit, it is addressing the issue.
The company came under fire in from U. The bill would have levied taxes on large corporations whose salaries were so low that their employees had to rely on public benefits to make ends meet. The bill didn't pass but Amazon raised its minimum wage in the U. Meanwhile, Amazon's quest for innovation and technology to achieve operational efficiency has many worried about the elimination of jobs. Those worries are not far-fetched.
The company has introduced cashier-less Amazon Go stores in several large U. Amazon's infrastructure has benefits for other businesses, especially small businesses that could not otherwise dream of access to such logistics. Listing their products on Amazon helps them increase their customer reach, and delivery essentially becomes Amazon's headache. Today, nearly two million retail "partners," most of them small or medium-sized businesses, list their products on Amazon.
As small businesses thrive, further job creation and spending are bound to happen. Those partners employ about 1. Amazon is structured to minimize corporate income taxes. The company reinvests its profits into expanding its business instead. While some joke that this policy makes Amazon the largest nonprofit organization in America, reinvestment leads to increased market share and capital gains.
Amazon's lower tax bill helps the company to expand, and expansion helps Amazon to reduce its taxes.