Amazon Is Killing Retail

Jul. 10, 2012 11:43 AM, Inc. (AMZN)BBY, BKS, GPS, RSH, SKT, SPG, WMT82 Comments
Kofi Bofah profile picture
Kofi Bofah

Put on your suits and hard bottoms. Traditional retail, as we know it, is dead at the hands of Amazon (NASDAQ:AMZN). The Amazon business model is a harbinger for wealth destruction. Main Street U.S.A. must now grapple with a new normal. The sprawling commerce, traditional family atmosphere, quaint mom and pop stores, and even the Big Box emporiums are systematically being run out of town. In their place, abandoned streets, closed businesses, boarded up buildings, and escalating crime patterns remain.

Today, politicians and concerned citizens grandstand and pass the buck towards Wall Street, Washington, China, subprime loan officers, and immigration law as the ultimate lynch pins behind Main Street demise. One step further, I must highlight a quiet, but equally as sinister movement that continues to derail our retail economy. The Amazon Corporation, through no fault of its own, is effectively the enemy of Main Street. Amazon and its online commerce model capitalize upon tax breaks to dump goods on the market and steal share. As Americans, however, we cannot blame Amazon for exploiting our own culture that worships the Almighty Dollar. Rather than unproductive fear mongering, we must invest accordingly around this trend.

Amazon Business Model

Amazon is Virtual Wal-Mart. As an online business, Amazon continues to diversify its offerings away from simple multimedia and into electronics, clothing, food staples, gaming, and automotive parts. Amazon's user-friendly interface is unique for its level of participation and de facto communication between consumers and headquarters. With 24-7-365 operations, the Web 2.0 crowd can network through this social media outpost to review products, blog-for-pay as expert users, and hawk their own e-books. Amazon's popularity is due in large part to the fact that its consumer inmates effectively run the corporate asylum.

Amazon is all the more impressive beneath its sleek online interface. This corporation

This article was written by

Kofi Bofah profile picture
I am a 2002 BSBA graduate of The University of North Carolina at Chapel Hill. In 2004, I founded Onyx Investments in Chicago with $12,500, one Dell laptop computer, Microsoft Office software, and one telephone. Onyx Investments has now grown to more than $3.5 Million in assets, en route to $1 Billion.  I am now working on my MBA at The University of Illinois Urbana - Champaign.

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