Group of Businesses Unite to Fight Amazon

Amazon wants to expand its grocery business despite setbacks. CEO Andy Jassy says the company plans to find a format it likes and go big on it in 2023.

Meanwhile, a group of businesses called the Responsible Online Commerce Coalition is uniting to fight against Amazon… citing concerns about its power in online shopping. 

Amazon to Double Down Grocery Business Despite Setbacks

Amazon CEO Andy Jassy has stated that the company plans to double down on its physical grocery business… once it lands on a format it likes. Despite recent setbacks, Jassy says Amazon is hopeful it will find a format it wants to go big on in 2023. 

The company reported $720 million in impairment charges for Q4 2021… due to the closure of Amazon Fresh and Amazon Go stores with low growth potential.

Jassy acknowledged that Amazon’s design has yet to have a market segment share in perishables. Instead, he believes the company has a significant-sized grocery business. Amazon is, experimenting with selection, checkout formats, assortment, and price points. Jassy is encouraged by several promising experiments. He believes that grocery will become omnichannel over time.

Jassy also praised Whole Foods, which Amazon acquired in 2017… as a good business in the grocery space that is growing. Despite a 98% narrowing of net income to $278 million in Q4 2021… Amazon’s net sales increased to $149.2 billion, up from $137.4 billion in the same period the previous year. The price of Amazon stock was roughly $99.50 weeks ago. This was up nearly 16% from the start of the year but over 35% lower over the past 12 months.

Overall, Jassy remains optimistic about Amazon’s grocery business. He acknowledges that the company has a history of quick experimentation and doubling down on successful formats. Jassy believes that Amazon will find a design that works for consumers. Moreover, the CEO plans to expand it more once it does.

Several Businesses Unite to Battle Amazon

A group of businesses is joining forces to fight against Amazon. They believe that Amazon has too much power in online shopping and want the government to do something about it. 

The Responsible Online Commerce Coalition is made up of small and large businesses… and they will work to bring their concerns to lawmakers who regulate tech companies. The coalition was founded by: 

  • Damien Geradinan, an antitrust lawyer
  • Amanda Lewis, who used to work for the House Judiciary Committee’s antitrust panel

They believe policymakers will listen more to small business owners than Amazon’s lobbyists.

Many companies are afraid to join the coalition because they are worried about retaliation from Amazon. Yet, U.S. Representative David Cicilline supports the team. He also hopes they can push back on Amazon’s policies. The coalition wants to: 

  • Advocate for fair pricing for seller commissions
  • Limit counterfeit products online
  • Allow sellers to offer discounts
  • Ensure appropriate search results

The coalition knows they are going up against big tech companies that spend a lot of lobbying… but they hope to collect fees from companies based on their size to help fund their efforts.

Governments around the world are also looking into Amazon’s practices. The US Federal Trade Commission, the European Union, and the UK are all considering antitrust legislation to regulate Amazon and other big tech companies.

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