Economist Ted Bauman is editor of the Bauman Letter, a monthly investment newsletter with over 100,000 subscribed readers. According to Bauman, Amazon.com is not a monopoly, although its share of the online retail market is growing rapidly. He points out that Amazon has not had a huge impact on brick-and-mortar retailers, with some notable exceptions. In fact, 90% of retail sales in the US still come from physical stores despite all the attention e-commerce gets.
Despite all of Amazon’s success, Ted Bauman has some long-term concerns about Amazon. He does not take claims about Amazon being a monopoly very seriously, pointing out how much pressure was put on Microsoft in the 1990’s. Amazon’s situation is nothing like this. However, Bauman is skeptical of Amazon’s ability to secure the personal data found in its vast customer database. In addition, there have been some criticisms of its labor practices, and many suppliers dislike working with the e-commerce giant.
On the political front, there are some factors that could impact Amazon negatively. For one, Jeff Bezos has made a political enemy of President Trump. In addition, the current US-China trade war could negatively affect the company, as a huge portion of the electronics it retails are manufactured in China. Furthermore, it could be vulnerable to any sell-offs in the broader tech sector.
Ted Bauman was born in the United States but moved to South Africa in the 1980’s. After earning his degree in economics, he embarked on a career in economic and urban policy. He returned to the States in 2008 as a Director of International Programs for a non-profit in Atlanta, GA. He later joined Banyan Hill Publishing as a part-time writer, later becoming one of the network’s most popular commentators. Ted Bauman is especially concerned with privacy and the problems posed by the rise of big government. Here’s How the Bull Market Dies
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