• 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. b 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/
