This column goes live on the most eagerly anticipated day of the year. My neighbor, who has a never-ending parade of delivery vans stopping in front of her door, has it circled on her calendar. At
least one of my daughters has been planning for it for several months. Even I, who tends to take a curmudgeonly view of many celebrations, has a soft spot in my heart for this particular one.
No, it’s not the day after Canadian Thanksgiving. This, my friends, is Amazon Prime Day!
Today, in our COVID-clouded reality, the day will likely hit a new peak of
“Prime-ness.” Housebound and tired of being bludgeoned to death by WTF news headlines, we will undoubtedly treat ourselves with an unprecedented orgy of one-click
shopping.
And who can blame us? We can’t go to Disneyland, so leave me alone and let me order that smart home toilet plunger and the matching set of Fawlty Towers tea
towels that I’ve been eyeing.
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Of course, me being me, I do think about the consequences of Amazon’s rise to retail dominance.
I think
we’re at a watershed moment in our retail behaviors, and this moment has been driven forward precipitously by the current pandemic. Being locked down has forced many of us to make Amazon our
default destination for buying.
Speaking solely as a sample of one, I know to check Amazon first and then use that as my baseline for comparison shopping. But I do so for
purely selfish reasons. Buying stuff on Amazon is convenient as hell!
I don’t think I’m alone. We do seem to love us some Amazon. In a 2018 survey conducted by
Recode, respondents said that Amazon had the most positive impact on society out of any major tech company. And that was pre-pandemic. I suspect this halo effect has only increased since Amazon has
become the consumer lifeline for a world forced to stay at home.
As I give in to the siren call of Bezos and Co., I wonder what forces I might be unleashing. What unintended
consequences might come home to roost in years hence? Here are a few possibilities.
The Corporate Conundrum
First of all, let’s not kid
ourselves. Amazon is a for-profit corporation. It has shareholders that demand results. The biggest of those shareholders is Jeff Bezos, who is the world’s richest man.
But amazingly, not all of Amazon’s shareholders are focused on the quarterly financials. Many of them, with an eye to the long game, are demanding that Amazon adopt a more ethical
balance sheet.
At the 2019 Annual Shareholder Meeting, a list of 12
resolutions was brought forward for voting. The recommendations included zero tolerance for sexual harassment and hate speech, curbing Amazon’s facial recognition technology,
addressing climate change and Amazon’s own environmental impact. These last two were supported by a letter signed by 7,600 of Amazon’s own employees.
The result?
Amazon strenuously fought every one of them, and none were adopted. So, before we get all warm and gooey about how wonderful Amazon is, let’s remember that the people running the joint have made
it very clear that they will absolutely put profit before ethics.
A Dagger in the Heart of Our Communities
For hundreds of years, we have been
building a supply chain bound by the realities of geography. That supply chain required some type of physical presence within a stone’s throw of where we live. Amazon has broken that chain
— and we are beginning to feel the impact of that.
Community shopping districts around the world were being gutted by the “Amazon Effect” even before
COVID. In the last ix months, that dangerous trend has accelerated exponentially. In a commentary on CNBC.com in 2018, venture capitalist Alan Patricof
worried about the social impact of losing our community gathering spots: “This decline has brought a deterioration in places where people congregated, socialized, made friends and were
greeted by a friendly face offering an intangible element of belonging to a community.”
The social glue that held us together has been dissolving over the past two
decades. Whether you’re a fan of shopping malls or not (I fall into the “not” category) they were at least a common space where you might run into your neighbor. In his book ,
“Bowling Alone,” from 2000, Harvard political scientist Robert Putnam documented the erosion of social capital in America.
We are now 20 years hence, and
Putnam’s worst-case scenario seems quaintly optimistic now. With the loss of our common ground — in the most literal sense — we increasingly retreat to the echo chambers of social
media.
Frictionless Consumerism
This last point is perhaps the most worrying. Amazon has made it stupid-simple to buy stuff. It has relentlessly
squeezed every last bit of friction out of the path to purchase. This worries me greatly.
If we could rely on a rational marketplace filled with buyers acting in the best homo economicus tradition, then I perhaps rest easier, knowing that there was some type of intelligence driving Adam Smith’s
Invisible Hand. But experience has shown that is not the case. Rampant consumerism appears to be one of the three horsemen of the modern apocalypse. If this is true, then Amazon has put us squarely in
their path.
This is not to even mention things like Amazon’s emerging monopoly-like dominance in a formerly competitive marketplace, the relentless downward pressure
it exerts on wages within its supply chain, the evaporation of jobs outside its supply chain or the privacy considerations of Alexa.
Still, enjoy your Amazon Prime Day.
I’m sure everything will be fine.