Thursday, April 28, 2011

Amazon is a low tech warehousing company

Their basic service is to provide warehousing services to match consumer demand in the nation.  They provide little real technology.  Hence the continuing problem of ascribing to Amazon the problem of on line shopping.

Worse, Amazon has no barrier to entry.  Any independent warehouse provides the same service as long as the robots are allowed to manage distribution.  The robots don't care, ultimately, which warehouses are used, they will search out the best inventory locations and use them, Amazon or not.

In fact, I hereby patent that idea.  I will help get a company funded whose sole purpose is to get independent warehouses, truckers, and railroaders  to sign up as service providers.  Then like Groupon, the robots will distribute goods using these member warehouses based on aggregation of on line sales.

Amazon gains from specialization will dry up, they will wither.  I almost feel sorry for them.  Like Netflix beating up on Blockbuster, Amazon exists only due to the stubborn nature of retail outlets.  Once the retail outlets sign up for the patented service, they will eat the Amazon's lunch.

How can this new company aggregate on line sales? Excuse me for a moment, while I write up a browser widget. 

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