The Amazon effect is the shift in customers' expectations towards
fast and cheap their items are delivered. This was caused by the rise
of e-commerce, and most notably Amazon, who offers an almost
limitless array of products and same-day and free shipping. b
A positive effect of this could be customers learning to hold brands
more accountable for high shipping fees or a lack of a streamlined
delivery service. This could cause brands to work on providing these
services to stand out, and therefore the customer will receive better
service. E-commerce has also allowed customers to buy whatever
they want from where they want, leading them to buy things they
would not without the online option.
On the other hand, the negative impact of the Amazon effect is that
customers could be increasingly dissatisfied from buying from brands
other than Amazon, this could cause sales from small businesses to
decline as well.
It is the responsibility of both consumers and businesses to support
ethical practices, but they can do so in separate ways. The consumer
is responsible for researching and understanding who they are
buying from, they are responsible for deciding if the brand aligns with
their values and if they will buy anyways if not. The company is
responsible for finding out what their customers' values are, and
what their company could do to align with them. Then they are
responsible for carrying out those practices, such as employee
treatment and environmental impacts of production. b
Mitchell, C. October 31, 2021. Investopedia. Amazon Effect.
https://www.investopedia.com/terms/a/amazon-effect.asp
