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Amazon Prime Is a Blessing and a Curse For Remote Towns (vice.com)

Posted by BeauHD on from the double-edged-sword dept.

An anonymous reader quotes a report from Motherboard: If access to Prime is reduced, or in some cases, cut off, it can leave many remote towns in the lurch. One dozen five-gallon barrels of hydraulic oil. A 2x4x8 of lumber. A pallet's worth of 10-ply, heavy-duty truck tires. These are just a few of the heavy, cumbersome orders one Redditor on the Alaska subreddit claimed to have ordered from Amazon Prime, with free shipping, before users started to notice difficulty finding eligible products. For many remote and rural communities in the U.S. and Canada, the arrival of Amazon Prime, with its low prices and free, expedient shipping was a boon. Hard-to-get or expensive products were now accessible, and reasonably priced to boot. For the cost of a membership (which now runs $99 per year), residents were able to get deals on everything from food to diapers to truck tires. But sometimes when something seems too good to be true, it is. Prime has proven to be a bit of a double-edged sword for many of these communities. Residents become dependent on Prime as local retailers struggle to compete. If access to Prime is reduced, or in some cases, cut off, it can leave many remote towns in the lurch.

6 of 314 comments (clear)

  1. But what if... by aicrules · · Score: 4, Insightful

    So what happens to many remote towns if access to Prime is reduced, or in some cases, cut off?

    1. Re:But what if... by Anonymous Coward · · Score: 4, Insightful

      Maybe they will abandon their unviable communities out in the middle of nowhere.

    2. Re: But what if... by that+this+is+not+und · · Score: 4, Insightful

      Mixed bag situation. Before, it was home town store owner. Upper middle class family in small town charging outrageous prices. It was a boon to the rest of the people when Walmart came in and drove down the cost of living.

      It goes in cycles. Always has, always will.

  2. Dumping by Hentes · · Score: 4, Insightful

    This is an old trick: sell goods/services below their cost until you drive out competition. You have to swallow some massive losses at first, but in the end you'll secure yourself a monopoly.

  3. Re:Yes, yes, we get it by Opportunist · · Score: 5, Insightful

    Actually, the story is telling a very different story. Amazon Prime endangers local stores. They will close shop, making you fully dependent on Amazon Prime in the end. Which is of course when they'll yank that carpet out under your feet and charge you through the nose for ... well, anything you might want or need.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  4. Re:Yes, yes, we get it by Ogive17 · · Score: 4, Insightful

    Amazon is the new Walmart, it's been happening for decades just with a different store name.

    At a certain point if all local competition is forced to close and Amazon yanks that carpet out, some local entrepreneur will find a way to purchase goods in bulk and sell them cheaper than Amazon but still at a profit. There will be some growing pains but I think this is a case where competition can never be completely removed and prices will remain reasonable.

    --
    "Action without philosophy is a lethal weapon; philosophy without action is worthless."