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Featured Article, Report, Resource filed under Independent Business | Written by Olivia LaVecchia | No Comments | Updated on Nov 29, 2016

Report: How Amazon’s Tightening Grip on the Economy Is Stifling Competition, Eroding Jobs, and Threatening Communities

The content that follows was originally published on the Institute for Local Self-Reliance website at https://ilsr.org/amazon-stranglehold/

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For all of its reach, Amazon, the company founded by Jeff Bezos in 1995 as an online bookstore, is still remarkably invisible. It makes it easy not to notice how powerful and wide-ranging it has become. But behind the packages on the doorstep and the inviting interface, 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.

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. 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.

But describing Amazon’s reach in the retail sector describes only one of the company’s tentacles. Amazon is far more than a big, aggressive retailer. As we show in this report, Amazon increasingly controls the underlying infrastructure of the economy. Its Marketplace for third-party sellers has become the dominant platform for digital commerce. Its Amazon Web Services division provides the cloud computing backbone for much of the country, powering everyone from Netflix to the CIA. Its distribution network includes warehouses and delivery stations in nearly every major U.S. city, and it’s rapidly moving into shipping and package delivery for both itself and others. By controlling this critical infrastructure, Amazon both competes with other companies and sets the terms by which these same rivals can reach the market. Locally owned retailers and independent manufacturers have been among the hardest hit.

Amazon’s bet is that as long as consumers are enjoying one-click ordering and same-day delivery, we won’t pay much attention to the company’s creeping grip. Even as consumers, Amazon’s dominance comes with significant consequences. The company uses its data on what we browse and buy to shape what we see and adjust prices accordingly, and its control over suppliers and power as a producer itself means that it’s increasingly steering our choices, deciding what products make it to market and what products we’re exposed to.

But we’re also much more than consumers. We’re people who need to earn a living, who want to have meaningful jobs, who care about the freedom to build a business. We’re neighbors and we’re citizens, entrepreneurs and producers, taxpayers and residents, with needs and wants from an economy that go beyond the one-click checkout.

Amazon’s increasing dominance comes with high costs. It’s eroding opportunity and fueling inequality, and it’s concentrating power in ways that endanger competition, community life, and democracy. And yet these consequences have gone largely unnoticed thanks to Amazon’s remarkable invisibility and the way its tentacles have quietly extended their reach.

Our new report, Amazon’s Stranglehold: How the Company’s Tightening Grip is Stifling Competition, Eroding Jobs, and Threatening Communities, aims to pull back this cloak of invisibility. It presents new data; draws on interviews with dozens of manufacturers, retailers, labor organizers, and others; and synthesizes a broad body of previous reporting and scholarship. Continue reading

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Featured Article filed under Independent Business | Written by Olivia LaVecchia | No Comments | Updated on Feb 7, 2017

When It Comes to Working People, Amazon Isn’t Innovative at All

The content that follows was originally published on the Institute for Local Self-Reliance website at https://ilsr.org/amazon-workers/

When shoppers interact with Amazon, they see an innovator. But behind the scenes, Amazon relies on a labor model that looks a lot more like the past than the future, with fewer reliable jobs, declining wages, and increasing inequality. We’ve partnered with Jobs With Justice to produce an article and fact sheet that breaks down how this powerful corporation is undermining working people — and what we need to do. Continue reading

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Featured Article, ILSR Press Room filed under Independent Business | Written by Nick Stumo-Langer | No Comments | Updated on Jan 25, 2017

ILSR’s Report on Amazon Gets a Big Response in the Press

The content that follows was originally published on the Institute for Local Self-Reliance website at https://ilsr.org/media-coverage-of-amazons-stranglehold-report/

ILSR’s recent report, Amazon’s Stranglehold: How the Company’s Tightening Grip is Stifling Competition, Eroding Jobs, and Threatening Communities, has been featured in numerous media stories and has inspired new reporting on the company. Here are a few highlights. Continue reading

Featured Article filed under Independent Business | Written by ILSR Admin | No Comments | Updated on Feb 2, 2017

ILSR’s Stacy Mitchell Speaks with The Capitol Forum about Amazon’s Economic Effects

The content that follows was originally published on the Institute for Local Self-Reliance website at https://ilsr.org/stacy-mitchell-speaks-with-the-capitol-forum-about-amazon/

ILSR’s Stacy Mitchell recently spoke about the economic impacts of Amazon in a conference call with editors and subscribers of The Capitol Forum, a news and analysis service for policymakers and others involved with issues of market competition. Here are some highlights from the conversation. Continue reading

Featured Article, Resource filed under Energy, Energy Self-Reliant States, Independent Business, The Public Good, Waste to Wealth | Written by Nick Stumo-Langer | No Comments | Updated on Dec 29, 2016

The Year in Building Local Power – Episode 8 of the Building Local Power Podcast

The content that follows was originally published on the Institute for Local Self-Reliance website at https://ilsr.org/the-year-in-building-local-power-episode-8-of-the-building-local-power-podcast/

In this episode, Chris Mitchell, the director of our Community Broadband Networks initiative, interviews a roundtable of ILSR staff members. Participants are: Olivia LaVecchia of the Community-Scaled Economies initiative, Karlee Weinmann of the Energy Democracy initiative, and Nick Stumo-Langer, ILSR’s Communication Manager. Continue reading