Amazon’s growing power in the U.S. economy


Amazon has a growing role in the U.S. economy that extends far beyond its retail business, according to a new report.

“Behind the packages on the doorstep, and behind the inviting interface and seamless service that has consistently put the company at the top of corporate reputation rankings, Amazon has quietly positioned itself at the center of a growing share of our daily activities and transactions , extending its tentacles across our economy, and with it, our lives,” says the report by the Institute for Local Self-Reliance.

According to ISLR:

Today, half of all U.S. households are subscribed to the membership program Amazon Prime, half of all online shopping searches start directly on Amazon, and Amazon captures nearly one in every two dollars that Americans spend online. Amazon sells more books, toys, and by next year, apparel and consumer electronics than any retailer online or off, and is investing heavily in its grocery business.

As a retailer, its market power now rivals or exceeds that of Walmart, and it stands only to grow: Within five years, one-fifth of the U.S.’s $3.6 trillion retail market will have shifted online, and Amazon is on track to capture two-thirds of that share.

 And the numbers grow with every new product and sales event.

Black Friday weekend was Amazon’s best-ever, according to the company.

Amazon device sales were up more than two times over last year and sales of Echo products increased sevenfold on Cyber Monday over last year.

In all, millions of Amazon-branded devices were sold this weekend, although the company doesn’t release specific numbers and did not respond to a request for comment.

Some 5.1 million Amazon Echo devices have been sold since its introduction in late 2014, according to analysis by Consumer Intelligence Research Partners (CIRP). The group surveyed Amazon customer and released its report just one week before Black Friday, when millions more devices were sold-through to consumers.

Echo is the flagship product – a Bluetooth speaker with a voice-controlled artificial intelligence named Alexa. Amazon Prime members can ask Alexa to control many smart home devices, retrieve information and play music. Of course, Alexa will also order from Amazon, although this is the least used feature.

“Our research shows that more than half of Echo owners use the device as more than a voice-controlled music speaker,” said Josh Lowitz, CIRP partner and co-founder, in a written report. “Users report asking about weather and news, and increasingly controlling other connected devices.”

In other words, they aren’t ordering products. CIRP estimates that most are largely using Echo’s voice-controlled features to play music, retrieve information (“Alexa, What’s the weather today?) or to control smart home devices such as lights.

But Amazon is doing everything it can to change this. Echo and the Amazon family of products, including Kindle readers, are designed to get Echo owners to buy more goods.

Amazon’s strategy has been to grow its Prime membership through exclusive offers and better pricing. The more consumers are drawn into the Amazon ecosystem, the more likely they are to exclusively use the company for pretty much everything they can.

Shoppers are already more likely to search Amazon for product information and reviews than even Google. Once they become accustomed to going first to Amazon, they cease to even compare prices, sometimes paying more for a product thanks to the convenience and perceived value of Prime.

It’s a genius move by Amazon founder and CEO Jeff Bezos, but chilling when you stop to think about just how much control that gives the company.

Walmart, though, is positioning itself for an epic battle with Amazon and its recent $3 billion purchase of will help it better compete with Amazon’s marketplace and technology platforms while leveraging the a vast distribution network that includes more than 6,000 stores.

ILSR contends that Amazon’s growing dominance poses a threat to the economy through increased monopolization in industry and declining property tax revenue. There’s also the rise of low-paid jobs in Amazon warehouses and fewer small businesses that make for vibrant communities.

The ILSR report is more than 70 pages long and looks at Amazon increasing dominance as a cloud services provider and provider of various fulfillment solutions.

All of which serves to strengthen Amazon’s role in the economy.


the technocracy is alive and well..

amazon..the behemoth..

“half of all U.S. households are subscribed to the membership program Amazon Prime, half of all online shopping searches start directly on Amazon, and Amazon captures nearly one in every two dollars that Americans spend online.”


“It’s a genius move by Amazon founder and CEO Jeff Bezos, but chilling when you stop to think about just how much control that gives the company.”

it is chilling..and thats just amazon..


~ by seeker401 on December 14, 2016.

11 Responses to “Amazon’s growing power in the U.S. economy”

  1. under communism you go to the government run big box store.

    under capitalism you go to amazon. and soon, only amazon!


    “The company told employees on Tuesday that it will close 30 Sears and Kmart stores in early 2017, half a dozen employees told Business Insider…. This latest round of closures will bring the total number of stores that Sears has closed this fiscal year to more than 200.
    That means the retailer will have fewer than 1,500 stores left by early 2017. That’s down nearly 60% from 2011, when Sears had more than 3,500 stores.”

    Amazon’s growing power continues


    “Amazon has been awarded a patent for a giant flying warehouse that acts as a launchpad for drones to deliver items within minutes. The U.S. e-commerce giant described plans for an “airborne fulfillment center” (AFC) such as an airship or blimp that would float at an altitude of around 45,000. The airship will be stocked with lots of products.”

    Other uses given in the article:

    a – Amazon’s filing reveals several uses for the warehouse blimp. One example is at a football match where customers may want certain items such as food or merchandise.

    b – The drones would be able to communicate with each other via a mesh network to give information such as weather and route.


    Article: Who won the mall fight? Amazon of course

    “The big winner in all of this? of course. Though the retailer is considering opening its own brick and mortar stores, it will presumably benefit from any further deterioration in mall traffic….
    In the wake of the fights, perhaps no one is bruised more than Simon Property Group, which owns 108 malls in the U.S. Its stock is down 10% in 2016.”

    More on Mall fights:

  5. Amazon GO… 2017

  6. U.S. cities are bidding for Amazon to open its’ second headquarters in the U.S. Amazon plans to announce next year which city gets its’ second headquarters. Currently its’ headquarters is in Seattle, and the second headquarters will supposedly match the size of the first.

    I live near Pittsburgh, PA, which is one of the cities in the bid, and today Pittsburgh announced it will submit its’ bid. I also heard on the local talk radio, Pittsburgh will have to offer Amazon at least $6 billion in incentives to attract the company. To put that in perspective the state of Pennsylvania, which the city of Pittsburgh exists, is $2 billion in debt. The incentives are not necessarily an upfront pay, but involve tax breaks, etc. Pittsburgh built a U.S. Airways terminal at the airport in the past, and then Airways, after moving in and getting all this money from the city, left the city. Pittsburgh could do nothing because Airways was bankrupt. So it is a major risk. The city could put all this money into the deal and then get no return.

    None of this is necessarily a bad thing. Pittsburgh like any other city needs jobs and a revenue stream. The natural gas shale drilling in the area is making the region thrive to a degree. It is a real industry that keeps jobs here. Will Amazon do the same has been the talk locally, and the city’s announcement today demonstrated the risk any city is willing to make.

  7. “by 2020 one-corp controls everything everyone everywhere” THEY broadcast that on games & movies all the time
    we need to end THEY- monopoly for sure in food the rest is not as necessary than food

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