Amazon Is Good for Small Business, A Debate

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Summary

Since its founding in 1994 as an online book dealer, Amazon has expanded to become the biggest internet-based company in the world. In 2020, its revenue exceeded {20}368 billion and its market capi...

Since its founding in 1994 as an online book dealer, Amazon has expanded to become the biggest internet-based company in the world. In 2020, its revenue exceeded {20}368 billion and its market capitalization surpassed {20}1 trillion. As the "everything store," Amazon sells countless products from millions of vendors. In 2021 alone, more than 1.9 million small and medium-sized businesses used the platform to sell their goods, accounting for some 60 percent of Amazon's retail sales. But is the tech giant ultimately good for them? Defenders of Amazon argue that the company opens up a truly global market to smaller retailers, enabling them to reach billions of consumers. It also offers massive logistics support, such as processing payments, storing inventory, and shipping goods. Critics of Amazon, however, argue that the company's immense market power makes it a gatekeeper between retailers and consumers, enabling it to charge hefty fees for prime placement and what some sellers complain are the costs of superfluous services. Critics also rail against Amazon's use of its own private label brands that can be weaponized to undermine competitors. No one questions that the tech giant has changed how people shop in the 21st century, but how beneficial have these changes been? Is Amazon good for small business?

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