Amazon was established by Jeff Bezos in Bellevue, Washington, on 1994 July 5. The firm began as an online marketplace for books but extended to sell electronics, software, video games, apparel, furniture, food, toys, and jewelry and became an online market place for consumers and sellers and Amazon has more than 40 subsidiaries that include A9.com, AbeBooksAmazon, AirAlexa, Internet Amazon, BooksAmazon, Game StudiosAmazon Lab126, Amazon Logistics, Inc. Amazon, publishing Amazon, RoboticsAmazon.com, ServicesAmazon, StudiosAudibleBody, LabsAWSBook, IMDb, Twitch, InteractiveWhole, Foods, MarketWootZappos
However Amazon employee more than 840,400 people all over the world but many times it argued that how Amazon treats their employees because inhumane working conditions, for example, former employees, current employees, the media, and politicians have criticized Amazon for poor laboring situations at the firm. In 2011, it was published that employees had to accomplish tasks in 100 °F (38 °C) heat at the Breinigsville, Pennsylvania storage facility. As an outcome of these inhumane conditions, workers became extraordinarily uncomfortable and suffered from dehydration and collapse. Loading-bay doors were not unlocked to allow in the fresh air because of concerns over the robbery. Amazon’s initial response was to pay for an ambulance to stand outside on call to cart away overheated employees. The company ultimately introduced air conditioning at the warehouse nevertheless, the company wants to change public prosecution and trying to give perks to their employees.
It is hard to label Amazon as a monopoly because Amazon is not a monopoly based on the official definition of a monopoly. According to Merriam-Webster, “a monopoly occurs when complete control of the entire supply of goods or of a service in a certain area or market rests with a single entity.”
Amazon is huge, but it regulates only 5% of all commercial sales in the U.S. and only 1% globally, according to Jodi Seth, head of policy communications for Amazon. By 2020, the number is estimated to increase to 10% of all retail sales in the U.S.
According to the United States Department of Justice, “as a practical matter, a market share of greater than 50% has been necessary for courts to find the existence of monopoly power.”
In addition, even though Amazon is accumulating its market share, it doesn’t justify recommending Amazon as a monopoly. However, imagine the noise if Amazon comes close to controlling 50% of all retail sales. but however, Amazon’s multilevel strategy for marketing and lobbying power should be considered the main multi-level marketing strategy consist. Amazon started by focusing on business-to-consumer connections between itself and its customers and business-to-business connections between itself and its suppliers and then moved to promote customer-to-customer with the Amazon marketplace which acts as an intermediary to facilitate transactions. The company lets anyone sell nearly anything using its platform. In addition to an associate program that lets anyone post Amazon connections and earn a commission on click-through sales, there is now a program that lets those affiliates build entire websites based on Amazon’s platform.
Many other large e-commerce sellers use Amazon to sell their products in addition to trading them through their own websites. The sales are processed through Amazon.com and end up at particular sellers for processing and order fulfillment and Amazon leases space for these retailers. Minor vendors of used and new goods go to Amazon Marketplace to offer goods at a fixed price.
In November 2015, Amazon opened a physical Amazon Books store in University Village in Seattle. The store is 5,500 square feet and rates for all products correspond to those on its website. Amazon will inaugurate its tenth real book store in 2017; media assumption indicates Amazon schedules to ultimately roll out 300 to 400 bookstores around the region.
Amazon intends to inaugurate brick and mortar bookstores in Germany.
In the case of lobbying Amazon spent $16.8m and had a team of 104 lobbyists in 2019, up from $14.4m and 103 lobbyists in 2018. Although many lawmakers are raising their voices for example Mnuchin said “Amazon has demolished the retail industry across the United States”.