Amazon: Engulfing Everything

Just Saying...

Looking for the trade based on some Amazon Ruminations. All because I saw this.

Behold the Amazon Angie List Killer. 


Amazon observations last night:

Sears reinvented for century 21? Catalogue business in reverse? 

Clients are in catalogs now. Services pay to get a copy. Then clients pay for services. Amazon gets piece of service fee. Uber-ized but with better centralization of logistics. 

1-Amazon adds in a new business line - home services 2--Combination of timeliness, third party "arbitration", and reviews will be powerful 3- fragmented industry on sell side, buy side is all catalogued. 4- sell side has little protective moat save for review, reputation and advertising dollars spent. 5- sell side will be charged possibly like a google ad placement down road.

Trade Idea-  buy the products that must be used in conjunction with echo? 

  • Light bulbs that work with Alexa?

Risk: if product is successful does amazon vertically integrate it? Does amazon "tax" it? 

Amazon is the door man at a club. $20 to get inside the velvet ropes . But it's the patrons that are already inside. The service providers are outside. Amazon is google adsense with delivery. 

Related Shrinking screen size and mobile access reinforces the top five ranks. It is still a real estate game. Nobody "below the fold" will survive in long run as smaller screens dominate also- so either recommended or paid for spots will be seen after disruption complete and market share moves from weak to strong.

Fallout: Kiss Angie's list goodbye, and any business they recommend away from amazon. This will do to handyman what Home Depot did to local hardware store. "Big box"-ing the home service industry. Handyman Uber affect: "rate me 5 stars I'll give you 10% off" Standard of living drops more Landscapers etc affected. Could be good for big box services as they can pay for advertising. Unless bezos starts ubering the dog groomer and swing set installation businesses under amazon prime. Which retailer affected  most from recommendations? Sears possibly? They have other home services that boost cash flow.

to be continued... Retail is in flux. Old business models do not apply. Old industry PE and other ratios are also in flux. Different yardsticks need to be used to quantify things when marketshare is up for grabs and market is simultaneously growing.



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