Amazon wants to add an online food store to their inventory. By doing so, they will enter in competition with other services such as Pea Pod. However, with Amazons current popularity and American Dependency on the Internet, I think Amazon might actually profit. “Prime” is now a major competitor of Amazon. However, because of “Prime’s” inventory, they are able to ship cheaper, holding the upper hand in control of both company’s profit margins. As a result, Amazon raised prices in order to match “Primes” prices. Amazon also has a huge impact on related industries such as gas, local shops, and public mailing. If Americans are buying everything online, they are depriving the small local businesses. This also means that the gas and travel isn’t necessary. In contrast lower gas usage means that the goods need to find an alternative method of reaching its customers, meaning UPS gets a lot of business, upping the UPS shipping companies.
Welcome to Rye Country Day's Economic Blog. Here you will find perspectives by students taking Economics at Rye Country Day School. It is meant to be a forum where students can openly express their ideas and take positions on relevant economic issues. I urge everyone to participate in presenting their own ideas in an open manner so that we can all learn from each other. Regardless of whether you are currently taking Economics, everyone is invited and encouraged to comment on articles and get involved. Feel free to e-mail me, Alex Osborne at firstname.lastname@example.org , with comments or suggestions.