The larger case against Amazon is that it’s killing off traditional retailing, while accruing too much power for itself. There’s no doubt bricks-and-mortar retail is in decline, although we shouldn’t exaggerate its scale. E-commerce currently accounts for less than 9 percent of retail sales, while Amazon, for its part, accounts for roughly 44 percent of all e-commerce.
If Amazon is sharp-elbowed and aggressive with its competitors, no one is forced to buy from it. Customers go there because they find it easy to use and cheaper than the alternatives. Amazon isn’t pocketing huge profits. Instead, it’s doing what companies should do: innovating, then plowing the proceeds into more investments (Amazon is much more than an e-commerce company).
Its fulfillment centers are wonders of productivity and hold the promise of as-yet-unforeseen transformations in other businesses.