Amazon is now offering house-cleaning services. This is a business with low margins and potential liability, and is labor-intensive. Amazon is using an outsourcing model- taking orders from homeowners for cleaning services and then engaging outside companies to do the work.
How does Amazon make money? It charges a fee over and above what the cleaning company charges a customer for such service. Amazon pays the cleaning company its usual fee for the ordered service and Amazon keeps the difference. In other words, Amazon can not make much- and homeowners don’t benefit from Amazon being in the mix of the transaction at all. It (Amazon) does not offer a lower price or better or faster service.
So, why is Amazon in this business? It is not very profitable, it requires enormous scale to make money, there is a lot of local competition, Amazon is in the business of selling products- and not consumer services, and Amazon can’t compete on price with local businesses that take orders directly from local homeowners; so there can only be one reason. Amazon wants to be in- or in control of- every aspect of our lives- at any cost. It’s worth it to Amazon to lose money on many products and services to achieve it’s ultimate goal. I’m sure Amazon approaches this cleaning service as a “loss-leader” and as just another way into our homes and our lives.
I’m all for any company or any person seeking-out profits and trying to grow their top and bottom lines. But in the case of Amazon -a product retailer- offering house cleaning makes absolutely no business sense. It goes against any business strategy or business model ever crafted or suggested in any field or industry. But, Amazon wants to be the one company to control every transaction in American life that it can possibly control. But, control of multiple industries in a monopolistic manner, in a way that leaves consumers vulnerable, and needy, and dependent on Amazon, would be anti-American … and scary. As Amazon uses its financial might to push competitors out of industries, consumers are the ones who will suffer. When a company can afford to forgo a profit in order to overcome competitors, it becomes more and more dangerous of an environment for consumers.
A company being able to afford such an endeavor requires the public’s help- such as by the public buying its stock and its products, thus, empowering a company to continue on its path of competitor destruction and ultimately, monopolistic power. Every time an investor buys a share of Amazon and every time a consumer buys a product from Amazon, they help to dig our collective consumer and entrepreneurial graves.
I do not feel that Amazon is being anti-American; but the type of society for which Amazon is gunning, where Amazon is the only player in a variety of industries, would go against what this country is all about- and it should be stopped, at some point, by Congress … before it is too late. Amazon is expected to serve shareholders and pursue profits; the government is supposed to stop corporations from crossing lines that leave consumers vulnerable and without reasonable alternatives for our wants and needs.
Amazon, and other large technology companies, such as Facebook and Google, are stifling, suppressing, and limiting the American dream- the goal of business ownership and professional and financial independence- because of the amount of money they earn combined with the enormous scale that technology- specifically, the Internet- has provided them. The scale leads to money, and the money leads to even greater scale … and more power. Small businesses simply can not compete with this lethal combination of elements. Before the Internet, other than the phone company, which had an inherently national service, businesses could not so readily secure an unchallenged national presence. Walmart was a minor out-liar, but, still, many low-priced retailers prevailed locally, regionally, and nationally. With the Internet, the largest company is always as present as any local company- so the lowest price is always available on the same products. Differentiation, location, values, relationships, loyalty, and service all take back-seats to price.
In the end, in an Internet age, if a single source provides the best prices, then competition will dwindle, or even disappear. If one single source can do this in multiple industries, we succumb to its control and lose our own control over our choices and our lives. As consumers … and as Americans … we will all suffer.
- If one company finances its way into every industry by accepting untold losses in order to muscle-out any and all competitors, then how can the unskilled, the uneducated, or even reformed inmates get themselves out of poverty? If retail stores are closing, and fast food is dwindling as it is (save for McDonald’s), then unskilled workers need ways to start businesses of their own in their communities where no local jobs exist. But, if Amazon even wants to own local cleaning companies, how can anyone be expected to work their way out of poverty through entrepreneurship? Why does Amazon have to be in “everything”? Why is Amazon being allowed to be in everything? Does Amazon want upward mobility through entrepreneurship for the unskilled and uneducated to completely disappear- because it is making that happen. A cleaning person offering her services to local homeowners now has to compete with Amazon.
Neil S. Siskind, Esq., President
The Siskind Law Firm
Neil Siskind is the Founder & Chairman of The Fatherhood Assignment
Learn more at: http://www.neil-siskind-the-fatherhood-assignment.org/
Neil Siskind is the Conservator of the Neil S. Siskind Nature Preserve
The Neil S. Siskind Nature Preserve is over 7 acres of environmentally-pristine waterfront land in a magnificent setting along New York’s majestic Hudson River. The Preserve includes a variety of species of animal and plant life, and is a precious example of the thoughtful maintenance of New York’s priceless open spaces. The land’s uses are limited to outdoor recreation such as hiking and climbing, and the study of ecology, nature and land use. The Neil S. Siskind Nature Preserve allows for the intelligent contemplation of our valuable natural resources and the most effective ways to maximize them and keep them protected.
Neil Siskind, Founder, “National Fatherhood Day” – March 29th
Read about the non-profits and charities whose missions Neil Siskind supports and promotes: www.neilsiskindsupports.com
Caring is Free®
You can read what clients and associates say about Neil Siskind at: http://siskindlawfirm.com/neil-siskind-bio/.
Neil Siskind’s Volunteer Work:
– Memorial Sloan Kettering Cancer Center, Volunteer
– Memorial Sloan Kettering Cancer Center, My Fundraiser- Help Neil Siskind help children with cancer to be more comfortable: http://mskcc.convio.net/site/TR?px=3182108&fr_id=2632&pg=personal
– Make-A Wish Foundation- Help Neil Siskind make sick children’s wishes come true by creating your own fundraiser: Neil-Siskind/Help-Make-A-Child-Smile.htm
– DonorsChoose.org- Donate to one of my needy public classrooms: http://www.donorschoose.org/NeilSiskindGiving
– Champion Children– We seek to inspire people through stories of children who have overcome challenges: http://siskindlawfirm.com/neil-siskind-champion-children/
Neil Siskind’s Pro Bono Work:
– Saving Senior Citizens- Protecting New York’s senior citizens from fraud and financial abuse www.savingseniorcitizens.com
– Senior FreeStart Business– Pro Bono: We seek to help put senior citizens in the right direction so that they can face the challenges of the modern economy: http://siskindlawfirm.com/free-start-business/
– Veteran FreeStart Business– Pro Bono: We seek to help put Iraq and Afghanistan war veterans in the right direction so that they can face the challenges of the modern economy: http://siskindlawfirm.com/free-start-business/
– In development: The Neil S. Siskind School of Hope: A free school to teach inner-city youths the skills of entrepreneurship and importance of economic self-sufficiency.
Neil Siskind’s Government Work:
– Suffolk County District Attorney’s Office, Boston, MA, 1994, Intern
– Office of Senator Christopher J. Dodd, Newington, CT, 1992, Intern
– Hartford County Department of Probation, Hartford, CT, 1991, Intern
Neil Siskind’s Community Assistance:
Financed & operated a legal clinic providing low-cost legal services to struggling Long Islanders during the recession to help clients resolve debt, organize finances, and launch new businesses.
Neil Siskind’s Professional Curriculum Vitae: http://neilsiskind.com/
Inventors, IP Owners, Manufacturers
Learn How To Bring Products To Market And To Expand Your Distribution Channels
The Complete Guide To The Ways To Manufacture & Sell Your Products