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The Grand Theory of Amazon

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Join Dollar Shave Club for only $5 http://www.dollarshaveclub.com/polymatter Thanks to sponsor Dollar Shave Club, new members get their 1st month of the Daily Essentials Starter Set including trial-sized versions of their Body Cleanser, One Wipe Charlies’ Butt Wipes, and Shave Butter along with their Executive Razor for only $5 with free shipping. Patreon: https://patreon.com/polymatter Twitter: https://twitter.com/polymatters Reddit: https://reddit.com/r/PolyMatter Discord: https://discord.gg/polymatter Amazon sells everything from streaming video to organic grapes, and it’s all part of a large (likely successful) strategy to dominate the entire consumer market. *The end of this video includes a paid sponsored promotion. This company had no part in the writing, editing, or production of the rest of the video. Credits Music is by Varsity Star: https://varsitystar.bandcamp.com/releases and the Varsity Star Facebook is https://www.facebook.com/varsitystarmusic/ The biggest source of inspiration for this video is the wonderful Ben Thompson's analysis of Amazon at https://stratechery.com - highly recommended. “wasted” GTA font used under a free license: https://www.dafont.com/pricedown.font SEC report from Amazon, including its competitors: https://www.sec.gov/Archives/edgar/data/1018724/000101872416000172/amzn-20151231x10k.htm https://www.usatoday.com/story/tech/news/2016/12/29/amazons-patent-flying-warehouse/95951942/ http://money.cnn.com/2017/02/28/technology/amazon-web-services-outages/index.html http://money.cnn.com/2017/08/23/technology/amazon-education-tenmarks-writing/index.html https://www.usatoday.com/story/tech/news/2017/02/28/amazons-cloud-service-goes-down-sites-scramble/98530914/ https://www.tomshardware.com/news/Amazon-Kindle-Cost-Production-Supplies-Parts,13953.html https://www.nytimes.com/2018/05/16/technology/moviepass-economy-startups.html http://www.businessinsider.com/amazon-prime-member-numbers-revealed-2018-4 https://www.cbinsights.com/research/report/amazon-strategy-teardown/ https://a16z.com/2014/09/05/why-amazon-has-no-profits-and-why-it-works/ https://techcrunch.com/2017/05/14/why-amazon-is-eating-the-world/ https://www.usatoday.com/story/tech/talkingtech/2017/03/01/amazon-control-internet-aws-cloud-services-outage/98548762/ https://www.forbes.com/sites/quora/2017/11/13/to-what-extent-are-amazon-and-google-competitors/#773520114267 https://searchengineland.com/survey-amazon-beats-google-starting-point-product-search-252980 https://www.economist.com/briefing/2017/03/25/are-investors-too-optimistic-about-amazon https://www.economist.com/leaders/2017/03/25/amazon-the-worlds-most-remarkable-firm-is-just-getting-started https://www.cnbc.com/2018/01/24/amazon-pharmacy-team-expanded-to-more-than-30-leerink.html https://stratechery.com/2018/amazons-go-and-the-future/ https://stratechery.com/2016/the-amazon-tax/ https://stratechery.com/2018/amazon-health/ https://stratechery.com/2014/losing-amazon-religion/ https://stratechery.com/2013/amazons-dominant-strategy/ https://www.entrepreneur.com/article/197608 https://www.nytimes.com/2018/05/16/technology/moviepass-economy-startups.html https://www.wsj.com/articles/amazons-newest-ambitioncompeting-directly-with-ups-and-fedex-1474994758 https://www.investopedia.com/articles/investing/031116/making-sense-amazons-move-logistics-amzn.asp https://www.investopedia.com/articles/investing/020515/why-amazon-needs-dump-ups-and-fedex-amzn-fdx-ups.asp https://www.amazon.com/gp/product/B00LT3L7AO/ref=as_li_tl?ie=UTF8&camp=1789&creative=390957&creativeASIN=B00LT3L7AO&linkCode=as2&tag=sgtsnu-20&linkId=YN4RE2ODX35ZZBNQ http://markets.businessinsider.com/news/stocks/amazon-stock-price-here-are-the-4-industries-wall-street-thinks-amazon-will-destroy-the-fastest-2017-9-1002426699 https://venturebeat.com/2017/07/17/amazon-tanks-blue-aprons-stock-with-one-trademark-filing/ https://www.greenwichtime.com/technology/businessinsider/article/Blue-Apron-got-Amazoned-before-it-even-became-a-11255872.php https://www.investopedia.com/news/amazon-launches-amazon-cash-amzn-wmt/ https://www.fastcompany.com/3038252/the-economist-trades-in-henry-kissinger-for-googles-eric-schmidt https://www.investopedia.com/articles/company-insights/092016/7-worst-products-amazon-ever-had-amzn.asp http://www.bloomberg.com/news/2013-10-24/amazon-revenue-tops-estimates-before-holiday-quarter.html https://www.nytimes.com/2017/10/20/opinion/how-amazon-took-seattles-soul.html https://thenextweb.com/mobile/2011/09/28/amazons-bezos-we-worked-hard-to-charge-you-less-for-kindle-fire/ https://www.wsj.com/articles/amazon-welcomes-teens-with-new-parent-controlled-shopping-allowance-1507726803 https://www.bloomberg.com/news/articles/2018-05-10/amazon-is-said-to-halt-google-shopping-ads-as-rivalry-heats-up https://stratechery.com/2018/divine-discontent-disruptions-antidote/ http://fortune.com/longform/amazon-groceries-fortune-500/
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Text Comments (1675)
PolyMatter (4 months ago)
Come chat on our updated Discord: http://discord.me/polymatter Also: some things had to be cut for time, so I’ve posted my notes to Patreon
BolinFoto (3 months ago)
The 2 dollar bill is no joke. A 1976 to 2003 is worth $2 yes but a 1928 Red Seal is worth $10 to $20 so it is only a bad deal if they are a 1976 to 2003 2 dollar bill. :D
Jonathan Laig (3 months ago)
Also without Google there's no Amazon cause Android and Chrome and maps and everything essential. Firefox won't support em and Microsoft will not support other companies unless you pay em ridiculous amounts or buy their license for like everything including use of their windows phone OS. Also google owns Asia everything here is Google even your very personal online shopping center Lazada or Grab asia owned by google here and bought out uber asia is run here by google no Amazon even in middle east, Philippines, Malaysia, India, Mongolia and so fort.
Bromoteknada (3 months ago)
I thought that you would fully detect Amazon's theory, but you didn't and here is why. (just to be clear, I love your videos and the level of work you bring on youtube) 1. Margin. Dropping your margin from low to even negative is a common competitive strategy. HOWEVER when competition is eliminated then the margin WILL increase and there won't be no Walmart or let's say FEDEX, to fight Amazon with lower prices. So what you will get as a customer in margin is : 1% (good for you) , 5%(still good for you) , but when competition is eliminated prices will go up for 15% margins (bad for you) , 30-40% (very bad for you) and there won't be a competitor to stop it, so basically your pocket will be defenceless in any oligopoly-industry. As you said it, scale. Selling 1000 pieces on a 1% margin is better than selling 100 pieces on a 5-10% margin. 2.I also think that you didn't describe the ad thing as it is. Amazon is actually moving into the "ad" business in order to develop its own tools (until now they would just retarget on adsense) and implement them into its products. Maybe the video was uploaded before these announcements. You also didn't mention that what Echo does is what other...sketchy sound monitoring companies do, gather data by keywords. I'm not saying that they directly listen to your...kitchen conversations however it is proven that they gather the keywords that you are using. Google does the same. If you start mentioning words like "tv,buy,samsung, 50 inches etc." then you will probably get tv-based ads google ads. So basically they may sell to you cheap products, but they will know your consumer behavior SO WELL , that you will end up buying dozens of shit that you don't need or will use. And that is just way worse than just buying some bucks cheaper. Oligopolies and monopolies are so bad for the global economy that personally I find the current and the upcoming situation way more dangerous than , let's say, Kim Jong Jun. And it goes without saying that such powerful companies will not be stopped by regulations and stuff, their influence is enormous and grows day by day.
Albino Gorilla (4 months ago)
PolyMatter Apple is trash and nothing but greedy just FYI
JMADMACHINE (4 months ago)
million dollar tax?
Rudra Tutorial Classes (10 hours ago)
Great Job
H.P. Teguh (12 hours ago)
This is why I freaking love the internet. At first, I was watching info about tech companies and the next thing I know, I was watching an advetorial about shaving lmao
lautnerlover0991 (18 hours ago)
I subscribed just because of your swift ad transitions :) Great video!
Rajat Kubade (1 day ago)
So technically it's a cartel but CIA is not gonna hit it
ashish rai (2 days ago)
My grandfather saw the titanic and he warned everyone that it would sink but nobody would listen. He told people a few more times and then he was kicked out of the cinema.
Elliott Zinc (4 days ago)
Well i guess soon itll be time theyll hire the flash
Ed Yancey (6 days ago)
smoothest sponsor transition. ever.
Ruthless (7 days ago)
Oliver John (7 days ago)
Amazon though 😍😍😍🗽🍎⚽️
caos blast (9 days ago)
The future's just going to be Google and Amazon competing for world domination with Samsung building all their tech...
Patterson Skerritt (9 days ago)
Waw that sponsor ad transitioned so unnoticed I taught it was a Amazon product.
David McKenzie / Larsen (10 days ago)
as to the search engine by amazon. it no longer exists apparently and there help page says this: "Amazon Web Search is powered by Google."
Meme Biologist (11 days ago)
9:25 you cheeky mother...
Guy Feldman (12 days ago)
The government need to start limiting Amazon asap
Mr. Nuke (13 days ago)
This is cool and all but Amazon still is only a Kindle book store in the Netherlands
Real Life World (13 days ago)
Who else watched an Amazon ad before the video started??
Jes F (15 days ago)
Love the transition to DSC I laughed out loud. Great video. Loved it. Subbed
Top Ramen (15 days ago)
You provide links to your sources!? God I love this channel
Ted G (15 days ago)
This genuinely improved my outlook on Amazon. Instead of an evil megacorp, this perspective makes them look like everything that's good about capitalism.
Lelania Jade (15 days ago)
Michelle Topham (16 days ago)
And btw, they are a monopoly. Which is why you shouldn't be buying from them. Because eventually, they will monopolize the Internet and then rapidly increase prices. Fcuk Amazon.
Michelle Topham (16 days ago)
Apparently I never use any of those sites as I didn't notice the 'Internet was down' at all -- :) And happy to see that, other than an occasional Amazon purchase, I don't use any of the companies they own. Guess they don't have full global reach yet. Buck up, Amazon :)
John Poole (16 days ago)
Jesus Christ that transition tho.
Sebastian Halloween (16 days ago)
Sebastian Halloween (16 days ago)
Turkey 🦃
Achim Gönndalf (17 days ago)
I hope we can choose which company will enslave us , when the day comes. Imagine you have to build Jeff Bezos' pyramid if you are a google fanboy. The slave drivers whip hits will feel twice as hard. Would be horrible.
Tony Czarnecki (17 days ago)
Well, the Grand Theory of Amazon is truly a remarkable piece of research. Top Notch. Thank you
Whole Food Plant-Based Man (17 days ago)
Video ends at 9:30
Axolotol Fan 27 (17 days ago)
Ngl, i genuinely have always considered Jeff Bezos to be a real-life Super Villain
HS (18 days ago)
so basically Amazons gameplan is take something big and make it 10X bigger
Heist Rockington (18 days ago)
Evie (19 days ago)
Well I found free $5216a money making system that is really working:(just go to) greatworks.club/?XriTk Great work...
Billy Sooner (19 days ago)
Amazon is simply trying to horizontally expand as fast as possible. Because they invest in everything, they will always have a positive return because for them, if 10 of their markets fail, 1 will have succeeded immensely and will have paid for the other 10's loss.
Stella Baker (19 days ago)
I’d be lying if I said I wasn’t afraid of all the changes happening in the world at the hands of Amazon. I’m also super excited and hope they keep things humane.
GuldursTV (20 days ago)
Success by human exploitation
GamezAhoy (20 days ago)
At 7:40 why are you bringing derivatives into this?
Michał Wołek (22 days ago)
so amazon is E-corp?
Friedrich Will (22 days ago)
This is a great topic to cover. Please post more like this in the future. Excellent!!!
Josh (22 days ago)
I never bought into the Amazon hype. They screw over sellers who are the real people running shit. Buyers are more shady and dishonest than sellers. It’s common fact. You can’t have buyers and screw over sellers. Ad to the fact Amazon sells more fake knock off products than any other retailer. Amazon also never “conquered” logistics, Walmart did and has been doing it longer. Walmart has a much bigger global presence also. Walmart also has FREE 2 day shipping, no tax and no “prime” fee. I don’t see amazons future, I really don’t. To be honest, eBay is free shipping, no taxes, no prime and less hassle. People need to stop drinking to kool aid
predat0r (23 days ago)
I heard they are entering the education/animation section. Uh oh.
Quick Dimwit (25 days ago)
Are people really buying 2 dollar bills? Cuz you can go to any bank and just get them. Not helping my faith in the future folks. Not at all.
Leobot Electronics (27 days ago)
Damn, i got a razor....came back to watch the video again and now I have a second razor! I might need another razor I believe...brb
Jonathanok100 (27 days ago)
I have avoided using a single Amazon-owned or Amazon-affiliated product or service for the past 3 years. That company is objectively bad for the entire US economy and either no one cares or no one is willing to do anything about it.
Janez Čadež (28 days ago)
The best segways on the planet.
Dan (28 days ago)
Biased miss info, diss info, counter intelligence predictive programming from the beast system
Hacker X-Files (30 days ago)
Grocery stores operate like Walmart selling food on a 33 1/3 percent markup on the selling price (some items plus 10% on top of that) and sales from welfare disability & social security checks and food stamp cards pay their employees and keep prices high for everybody else. Walmart did the same thing as Amazon until they put all the small stores out of business then they raised prices. The whole downtown and the malls across the nation are a wasteland of abandoned buildings. People wondering around the streets with no jobs.
Big Bog (1 month ago)
Azoo Cola (1 month ago)
You snuck that ad right in there. Well done!
Alex J. Qeblawi (1 month ago)
You should do an update after the news that Amazon is increasing their minimum wage.
Zary Photography (1 month ago)
That was one of the nicest ad transitions I've ever seen
Brian A (1 month ago)
Lt. Unknown (1 month ago)
Lol who missed buzzfeed
Jose Ochoa (1 month ago)
Nobody buys kindles
Myles Underwood (1 month ago)
Polymatter, you have a true gift at transitioning to advertisements. I've watched many of your videos and almost every single one was mind blowingly smooth. Good work. Also your videos are wonderfully informative.
mac88white - All stories on my channel (1 month ago)
Amazon's goal is to become a 21st century bank. Period.
Srilankan Tourist (1 month ago)
what a shity video ... Amazon is and will be non existent in Asian countries ...
Alftura (1 month ago)
Bad website design! LOL #reddit
Jens Filip Raanaas (1 month ago)
Always delivering world class ad-transisions
Harrison Erbe (1 month ago)
I fell bad for anyone who cant go 4 hours without buzz feed
Simon Collyer (1 month ago)
You have good ideas and I want to share your vids but with your "dollar shave." advertisements its impossible.
karthik rox (1 month ago)
Got an Amazon ad on this😂
Chris Moeller (1 month ago)
Amazon charged me a grand for a bunch of items that I didn't order, and sent them to my flat. I tried to tell them that I didn't order them (I didn't!) and they refused to believe me. After about a week on the phone, they finally believed me, but said that someone had broken into my account, so they had to shut my account down, but they assured me that they wouldn't actually delete my entire account. They did. Now I can't get them to acknowledge the orders because I no longer have an account with them. I can't get into my kindle account, can't get into my Audible account, but they're still charging me for regular deliveries, audible subscriptions, etc. that I can't access. Every time I try to get through to someone, they don't speak English, and argue with me, claiming that I don't have an account. It is now well over half a year later, and I have probably spent 3 weeks of my life, in all, on the phone to them, just trying to get them to sort out this problem. They have robbed me of money. My audible credits delete if I don't use them within 6 months, but I can't access my account, so they keep deleting my old credits that I couldn't use, and charging me for new ones. I finally managed to speak to a manager who FINALLY accepted the huge mistake that they'd made, but she said she had to call me back another time. She told me a specific time that she would call me back...and she never called. She called two days later at a different time, when I wasn't expecting my call and wasn't near my phone. She left a message saying that she would call again the next day. She didn't. Instead she called 3 days later, on a weekend, at an odd hour, in a message berated me for not answering the call, and said she was going to leave the whole thing because I didn't answer. I'm now over a grand short, and have had to dedicate an entire room of my flat to storing Amazon boxes in case I somehow manage to return and get my money back on these orders that I never ordered, and that I've been charged for. I used Amazon for years before this. I knew how their website worked, and made weekly orders through them. I recommended them to people (people who listened to me, bought items on Amazon that I recommended, and started using them prolifically because of my recommendation!), and purchased everything through them - gifts, beauty products, food, books. Pretty much everything. And they did this to me. Fuck Amazon, and everything they own. Edit: I'm sorry, I wrote this when I was half-way through your video, and watching the rest is stressing me out too much that I can't continue. The thought of these crooks engaging in world domination is too much to bear. Please start supporting local businesses everyone. I was a huge supporter of Amazon, but these businesses will screw us all in the end. Since having all this happen, I have researched Amazon, and the more I find, the more disturbed I am. I wish I knew this sooner. I wish I had never been one of their most loyal customers. They are a disgusting company, and Jeff Bezos is nothing short of a thief.
Isolophillia (1 month ago)
Julien is quaking with this dudes smooth and fire segways. xD
Anastasia (1 month ago)
I work at an Amazon Sortation Center. I love my job! ☺️
LifeLikeSage (1 month ago)
A flying warehouse with detachable drones? Better watch out for sky pirates.
PronunciationLesson (1 month ago)
so a=is anything ever enough for humans? what's the future looking like?
Ashley Oxier (1 month ago)
HAHA how did you start advertising towards the end like that? Smooth my man, smooth! 😂👍
getoutside23 (1 month ago)
why are they voluntarily taking a loss on kindles? to get customers in the door that other wise wouldn't, data?
Dan GleeSack (1 month ago)
1:15 dammit, you set off my echo.
Aazam Chattha (1 month ago)
Anyone else fine with Amazon being a monopoly for the meantime?
Aditya Dandwate (1 month ago)
An Amazon ad! Wow
naman jain (1 month ago)
I really love this guy. He really teaches you business and his sponsorship presentation is subtly placed. I actually watched the ad at the end thinking there was more to the video.
john doe (1 month ago)
spent shipping 11,000,000,000 / 300,000,000 is $36.6/package. that has to be wrong
Ian Wong (1 month ago)
That ad transition was so smooth, I almost bought a razor. I don't have a mustache.
Evan Johnson (14 days ago)
and to keep it that way why not purchase dollar shave club membership?
robenzo 421 (1 month ago)
Lol i swear it had me considering ordering some razors your comment had me rolling
felipe rincon (1 month ago)
tierzoo shameless publicity, love it
Emma Nash (1 month ago)
Apple was the fruit taken from the garden of Eden, apricot computers Orange network and mobile phones BlackBerry phones, homophobes technology lol
Not Me (1 month ago)
I thought this was about the Amazon rainforest...
Toni Aurelius (1 month ago)
XLR5 (1 month ago)
Ironic how dollarshaveclub is owned by Amazon.
Comrade Swinglish (1 month ago)
you made her go off again
Diisplxy (1 month ago)
in before amazon are the government.
Khalid Alkarimy (1 month ago)
+1 sub for that smooth transition LMFAO
oldnotweak (1 month ago)
why the hell do you people need so many razors? you can use the same damn knife a billion times.
Poudevigne_N (1 month ago)
Soooo Amazon only exist because of the promise that they Will make money in the futur... eventually.
Sarah D (1 month ago)
I hope Tier Zoo actually got credit for the logo you used to explain companies and their specialities... I didn't see it in the description box.
廖俊翔 (1 month ago)
"Profits may be shaved" lmao for a split second that sounded completely natural
nope (1 month ago)
Aditya Singh (1 month ago)
lmao, tierzoo refernece
Michael Rüter (1 month ago)
How long did it take u to researche all that ???
Mckylacious (1 month ago)
Get AmaZONED out Toy's R us
Eddie Congdon (1 month ago)
Being someone that drove trailers for Amazon for over a year and even occasionally to this day everything done to please the customer comes directly on to the back of the drivers 🚛💨
NABIN KSHETRY (1 month ago)
how to make video like yours? give me some tips to edit video like yours?
Priest Morrison (1 month ago)
Brandon Reyes (1 month ago)
Subscribed because of the smooth ad transitions
RagingTiger (1 month ago)
Dude your ability to insert a commercial is amazing 😂
MR George (1 month ago)
I always fascinating about how clever you're coming to the ad in the end of a clip . so clever like its a part of the subject . clever guy . 👍🏻
toasteh (1 month ago)
This was an incredibly informative video. Great work!
fivezeroniner (1 month ago)
watched 2 of your vids, subscribed. theres so much to learn from you as Im also learning motion graphics. the non intrusive music, perfect phasing and smooth graphics. so much to learn from you.
HeavenlyDemon 97 (1 month ago)
Lol Apple just milks them whales.
Prakash Kamath (1 month ago)
I got an Amazon ad at the start