• What are the positive and negative impacts of the "Amazon
effect" for customers?
It is no surprise that Amazon has changed the way consumers think
and shop."Amazon accounts for nearly half of all e-commerce activity.
They dominate and it really isn’t close. a As a matter of fact, you can
take the next ten largest companies in e-commerce, including
companies like eBay, Walmart, Apple and Home Depot, add them
together, and you still wouldn’t equal the market share of Amazon
(PKF O'Connor Davies, 2020). There has been a decrease of people
who shop at brick and mortar stores, as online shopping has taken
over. Online shopping offers flexibility to consumers allowing them to
shop a wide variety of products at comparable prices all from the
comfort of their own homes. Price comparison of products can be
done with the simple click of a button, providing savings to
consumers. The main benefit that the Amazon effect offers to
consumers is convenience. However consumers are missing out on
the opportunity to physically see and touch the product unless they
have done so previously. The evolution of online shopping has forced
other retailers to rethink their strategies, and society has seen those
changes in the form of of drive-up grocery pick up and other
convenience options.
As ethical concerns regarding business practices such as poor
employee treatment, negative environmental impacts of production,
and decreasing use of local storefronts are recognized, how much, if
any, of the responsibility of these unethical practices fall to the
customers, and how much, if any, falls to businesses?
Ethical concerns revolving around business practices within reason
fall under the responsibility of the business of government. It is within
the business' discretion what practices they use, therefore a business
should be responsible for their practices. Poor employee treatment is
often a direct effect of business decisions made by the business,
outsourcing is a great example. If a company choses to outsource its
labor and learn employees are being mistreated that is a direct doing,
as the company could have used higher standards. There is some
responsibility that falls under the government. The government
should have societies best interest at heart, meaning if a business'
operations are negatively effecting the environment and the business
is not taking the ethical steps to combat or reduce their waste,
government interference might be needed to address said concern.
Such as putting legislation in place to prevent or punish businesses
from acting in such a way.
References:
The Amazon effect. PKF O'Connor Davies. (2020, February 3).
Retrieved February 11, 2022, from
https://www.pkfod.com/insights/the-amazon-effect/
