Part 2: Q&A of the Day – How many small businesses have been lost with Amazon’s success?
This year alone, over 160,000 small businesses had closed by August according to a Yelp study. And which small businesses have led the way for closures this year:
- Restaurants
- Shopping/Retail
- Spas/Personal care
Of those closures, Florida suffered the third highest number of permanent small business losses. Now, is Amazon to blame for all of this? No, pandemic considerations are first, however they progressively benefit every step of the way. It’s often unknown that Amazon owns over 40 different big brands which include Whole Foods, Ring, Zappos among others. You wouldn’t think Amazon has assisted in the demise of some restaurants, but they have as many customers have opted for grocery delivery from their company owned stores in lieu of takeout or restaurant delivery. You may not think they’d benefit from the closing of local apparel stores, but they have with their company owned clothing brands offering delivery which include the ability ship any undesired items back for free – which most local businesses wouldn’t be able to afford during normal economic times. You wouldn’t think they’d benefit with the closure of spas and related personal care centers, but they have by selling people personal care products from their company owned brands. They’ve brilliantly acquired and created a portfolio of companies which address most aspects of our lives. Including brands people don’t associate with the company but are owned by it.
There is simply no comparison between Amazon’s scale and impact on businesses of all sizes and it’s not a coincidence that in the most recent decade in which Amazon has been the biggest beneficiary of any company in the world, we have our first decade which has seen a net loss of employment within small businesses. Again, good for Amazon but it’s a reminder that if you value certain local businesses, it’s important to prioritize them in your shopping habits or else you’re likely to find that one day they’ll be gone along with the jobs of those who used to work there.
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