Buying stuff over the web? Well, lots of people are doing that, many far more than me. I don’t particularly care for leaving my credit card number hither and yon. I also don’t have much use for leaving valuables on the outside of my house at the front door. So I buy most things with cash at a brick and mortar store. I am not religious about it. I am just set in my ways.
Still, when I consider the Amazon (AMZN) phenomenon, I wonder where that is going, and I have a small stake in the matter. One of the stocks I own (LOW) lost value when Amazon agreed to sell Sears Kenmore appliances. Another (GIS), however, is looking at an alliance with Amazon to sell its products, but just looking does not seem to be helping it much. Sears (SHLD) shares, however, did jump when Amazon announced a working relationship (Amazon Courts Consumer Packaged Goods Companies (AMZN, GIS)). I guess when people are talking about money they want something concrete.
The force behind Amazon is Jeff Bezos. Currently, he gives the impression of being unstoppable: This meme showing how much Amazon billionaire Jeff Bezos has changed over the years is going viral. So I suppose I should put all my worldly goods in Amazon stock. Still, there is not much money to be had in doing what everyone else is doing. Therefore, I am sort of wondering. If all the other business people want to avoid becoming dependent upon Amazon, how are they going to sell their products? My guess is that sooner or latter investors and sales people are going to figure out that Amazon has not changed the world that much. Even the web has not change the world that much. The web provides the opportunity to set up a virtual store, and that is what Amazon has done. Just the same, people still want to see what they are buying, ask questions, buy the product, and get what they have paid for to their homes. The people who run the old brick and mortar stores know how to do all that quite well. They just need to figure out what they need to do to match or beat Amazon on price and still please the customer. My guess is that they will figure it out.
Necessity is the mother of invention.
So at this point I am just wondering how much value some of my investments will lose before they get it all figured out.
Sigh! Do all paths lead to Amazon’s portal? No. Not yet, anyway.