Garbage Platform + Garbage Customers = Only Garbage Vendors/Sellers Eventually

Another great post by Louis Rossmann regarding Amazon as a consumer and a seller.

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Yup, he nailed it.

Whether or not this eventually hurts Amazon is unclear.

The problem has gotten much worse and all Amazon does is grow so why the hell would they do anything different?

Amazon doesn’t care about it’s sellers
Amazon doesn’t care about it’s consumers
Amazon does care about $ and until a large chunk of actual brands pull out, nothing will change.

Maybe crimp connector known brands have exited but most other brands have not.

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Probably won’t. Communities across this nation had no problem trading American jobs for cheap Chinese junk at Wal-Mart decades ago, why think Amazon be any different.

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Obviously Amazon doesn’t care about their consumers because they let 30K units of this junk sell every month. 3.3 Stars…

There are more ER visit reviews on this listing then there are ER’s in the United States but that’s OK. #1 Seller in the biggest category in supplements.

All because Doctor Huckabee say’s it’s great on Fox News 150X a day…

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Don’t miss the brief appearance of a wild animal partway through…

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Fool me once shame on you, fool me with 3.3 stars over months, let the ER doc shame me.

I have a hard time balancing my love for Darwinism and hatred for personal/corporate greed.

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You mean the Kitty Cat? Haha. Mine does that all the time when he isn’t sleeping on me in weird positions…

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Nail, meet hammer.

Let us fervently hope that it’s not the final nail in the coffin, to be sure, but I have my doubts.


On a related note, it will be interesting to see exactly what crimping tool(s) Mr. Rossmann uses in his proposed experimentation, and whether or not he uses any calibrated test equipment to judge the suitability of pushing 30 A of electrical current (AC OR DC) through a crimped connection in a 12 awg run of wire longer than a mere several meters (solid OR stranded).

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The curtailing of Chinese junk will happen externally. Not related to consumer demand…

The question is who in the next generation will replace them…

My recently purchased box of 100 manila file folders from Staples says they were manufactured in Cambodia, famous for it enormous forests of hardwoods?

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Cambodia, like most of the other nation-states of SE Asia, offers attractive opportunities for decreasing various support costs to multi-national conglomerates.

Yet another nail in the coffin.

Ha! Peter Zeihan rears his head on the SAS once again!

My understanding is that once hypercritical brands like Allbirds that stayed away from Amazon added Amazon to their distribution network.

After all, all this is a marketshare game in the larger game of capital accumulation

Most folk who emote America First very vocally, would trade that motto for a $1 saved so yah Walmart is a very good example of how boomers handled things in yesteryears.

Hupokirittes and all.

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Is Cambodia the new Vietnam is the new China?

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The Belt and Road Initiative stretches far and wide; it just took Phnom Penh’s halls of power longer than it did Singapore, Thailand, Malaysia, Indonesia, and Vietnam (among others, as far-flung as Africa & South America) to figure out how to get a seat upon the supposed gravy train.

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I purchase a standard black long sleeved crew neck T- shirt I wear every day from Eddie Bauer or Land’s End, two of my favourite clothing designers, fairly frequently. LL Bean got dropped as too expensive.

The fit and quality changes every year, as does the country of manufacture. Poland, Turkey and Ukraine have been replaced by Haiti, Viet Nam, India and Cambodia, for the manufacture of the same T-shirt!

I am old enough to remember when almost everything I wore or carried came from Italy, back when I worked in an office full of vipers every day. “Where did you buy that?” They would ask, or “Whose the vendor?” if they were close to the garment trade in NYC.

The garment trade in NYC long ago moved all of its production abroad, and where my supply of black T-shirts comes from changes every year or two the the cheapest possible place of manufacture.

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This phenomenon - which is quite real, and has been for much of the last 30 years and more - would seem to be one of the primary impetuses for Amazon’s ongoing PT (“Product Types and Attributes”) Initiative, along with its corollaries, the Size Normalization & Attribute Harmonization Initiatives.

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There’s plenty of incentive for big brands to stay on Amazon. For one, they move volume there and can get as good of a deal as they do with any other big retailer since they have negotiating power. As long as they’re making money how Amazon runs their shop doesn’t really matter to them.

A brand that pulls out of Amazon isn’t doing themselves any favors. For one, Amazon can revoke their access to things like brand registry tools, show competing brand products when their name is searched, or not bother enforcing sellers who are selling fakes or RAs misrepresenting products as NEW.

They might not care about sellers, but they do care about costs. The reason why I stopped selling in all other channels is because of FBA. If I try to hire warehouse workers at poverty wages and give them unreasonable quotas, I would be able to hire nobody. But somehow Amazon does exactly this and has people lined up out the door to work for them. So I can at least take advantage of that by using FBA to pay next to nothing for fulfillment services. I know some people hate FBA, but it’s the greatest service that has ever been made for sellers, if your products are a good fit for it.

Doing some back of the envelope math here, Amazon’s hourly quota for workers is 150 - 300 items per hour, let’s just say it’s 200 / hour. Let’s say there’s the following touch points per item:

  • Receive
  • FC Transfer
  • Stow
  • Pick
  • Pack

With an hourly rate of $15 / hour, let’s say their labor cost is $30 / hour after counting taxes, benefits, supervisory pay, etc. That works out to a cost of 75 cents / unit in FC labor to process a unit from it entering the warehouse to it leaving in a shipping package. And I’m probably estimating this high because some of these steps are either greatly assisted by, or fully automated now.

Compare that to a small company, a warehouse worker probably costs $50 / hour in total cost, and 1 employee can probably process 20 - 30 orders / hour at best. That’s costing 2 bucks in labor to pick and pack, that’s almost triple Amazon’s cost to do the job.

I used to complain about FBA fee hikes, but I took a hard look at the math this year and realized JUST how good of a deal it really is.

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Yup…

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