The Big Picture Effects of Amazon and Small Businesses


Mirabella Gibson on

Online shopping sites, such as Amazon, are affecting small businesses amid COVID-19

The Backstory of Amazon

  Founded in 1994 by Jeff Bezos, Amazon the world’s 4th fastest growing retailer. Amazon began as an online marketplace for books with the promise that,” was to deliver any book to any reader anywhere.”.

  Today, you can find a lot more products than books. There are over 12 million products to choose from ranging from A-Z. In the 2000’s, Amazon started running the service where individual sellers and outside merchants could sell their products through the marketplace. This became an instant success and today you can buy almost any name brand product through Amazon as well as Amazon brand products.

  In less than 30 years, a little company called “Cadabra” founded in a garage has expanded to over 100 centers in the US and over 180 globally. And Jeff Bezos? He’s the richest man in the world in 2020. 

How has Amazon become so popular?

  Amazon was one of the first e-commerce (electronic commerce, buying and selling of goods via the internet) sites. E-commerce began in 1991 when the internet was opened to the public. Online shopping was created with the desire to make shopping more convenient (both time and price wise).

  Imagine being able to find anything you could ever want (with the exception of pets, cars, real estate, guns, liquor, lottery tickets, fuel, and tobacco) in one place. In comparison to stores, Amazon is more convenient in all aspects.

  There is a wider selection, you can do all of your shopping in one place, and it’s a lot cheaper. Not to mention that you don’t have to leave your house to shop. With services like Amazon Prime, you can shop with the click of a button and get your package in a day. That’s not the only service Amazon provides though.

  You could say that Amazon has come a long way from just selling books. Today, it’s hard to find a product that you can’t find on Amazon. You can even stream movies, shows, and music with Amazon music and Amazon Prime TV. 

  With the growing panic of the Pandemic, many fear for their safety when it comes to going to the supermarket and stores. Thousands of businesses have suffered during the pandemic but one has been even more successful due to the Pandemic, Amazon.

  With more and more people opting to online shop to avoid infection, Amazon has had the biggest profit in its 26 years during the height of the Pandemic.

  On June 16th, Amazon bought Whole Foods and began Amazon Pantry. This is a service where you can shop Whole Foods without even going in.

  This seems like a win-win for everyone. You don’t have to risk getting COVID, you save money, and Amazon profits. There are people who don’t profit though, small business owners. 

The Effects of Amazon/Politics Against Small Businesses 

  Many daily consumers of Amazon tend to ignore the whole reason behind Amazon’s selling strategies: to drive people to buy products at the click of a button. Small business owners are on hands and knees, selling and marketing all products to try to survive and outlaw the big company while balancing COVID-19.

  The perks people look for when buying an item during a pandemic are quality, efficiency over a long period of time, and customer service. While many stores locally are closed due to financial issues and the inability to earn money, the only warehouses that can easily stay opened are the big picture companies.

  When walking around shopping centers in towns like Haddonfield, New Jersey, the landmark is well known for the numerous window stores that support small businesses. Especially during COVID-19, when window shopping isn’t a safe option, is when many people give in to scrolling down their wishlist on Amazon’s website. 

  Buying online in a few easy steps may come easy to populations, but the side effects on a nation ignoring hard working shops comes into play.

  For one, companies were already under fire when Amazon set advertisements offering Prime delivery options during their rise to fame. People that experience huge risks for underlying diseases have to choose to risk it all for in person customer care, or to lay back and wait for a package to arrive in a few days.

  Furthermore, with bargain hunting holiday shoppers crowding stores to find the best deals, it is much more convenient to shop at home than to be the first ones at the door of a store. 

  Focusing on the current world-wide crises pertaining to President Trump and his recent veto against a Defense Bill made by the United States government to China, the President concludes in a tweet, saying, “The biggest winner of our new defense bill is China. I will veto!”

  In simpler terms, a lot of Republicans give in as to China “destroying America’s economy” and blaming citizens for the worldwide pandemic.

  His veto towards the bill suggests for China to stop all relations of business with America, hurting the economy even more. If American citizens take one good look around their homes, they will find that most, if not all goods were made in China.

  Furthermore, the triggering and coronavirus effects from China delay a lot of supermarkets and businesses to experience shortages of products.

  In retrospect, all factors of quotes from the President and the lockdown of countries plays into traced lines that hurt businesses.