The Amazon Effect?

With the exception of Home Depot the retail shopping experience is not what it used to be. From what I understand this is not a localized phenomenon. There are shortages of products and staff. It started with the toilet paper shortages at the beginning of the pandemic. It has only gotten worse. Some people said that the shortages are caused by hoarding. Others say the pandemic has choked production and the supply chain. The other day I heard a theory that was unrelated to the pandemic.

It is the Amazon effect. Because Amazon is such a juggernaut what was once going to retail is now available online. Sure we have noticed price spikes, but there is not much that is unavailable. This theory makes sense to me because the things that you would buy in Home Depot are not available online. Or simply that stuff is to big to ship. When I go to Home Depot I am surprised that the shelves are full and the staff is available and friendly.

The Amazon effect does not explain why there are so few cars at the dealerships. That is blamed on some sort of chip shortage. There is no real explanation on why there is a chip shortage. I could understand if some giant chip factory blew up, yet that is not the explanation.

The Amazon effect is an interesting theory. It is evident that the media and politicians support Amazon. Just yesterday there were riots designed to take out major retailers. Riots are not spontaneous. They are planned. Yet I do not completely buy into the Amazon effect. My view is we are no longer on top. Our statues have been knocked down, we are now here to serve another. It is my view that supply chain that we have become accustomed to is now providing another.

To the Victor goes the spoils. If that is the case it won’t be long before the shelves in Home Depot go bare. It is simply a slower supply chain.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s