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Ted Bauman Explains Why Everyone is Wrong When They Say Amazon is a Monopoly

Ted Bauman is an economist and investor who works for Banyan Hill Publishing as an editor. He advises his subscribers on ways to invest in a conservative manner and also lends his knowledge about asset protection and privacy issues. He spent over 25 years working in South Africa in the not-for-profit sector where he concentrated on building affordable housing.

He wrote a recent article about Amazon. He started out by writing that in 2008 the top guy in the tech sector was Apple’s Steve Jobs. It was that year that introduced the iPhone which was a paradigm shift. The iPhone is still the most popular phone in the world and accounts for 75 percent of the total annual revenues at Apple.

The new version of Steve Jobs is Amazon’s Jeff Bezos, Ted Bauman wrote. Jeff Bezos has filled the leadership role in the tech industry that Jobs held. Amazon is now the fourth most valuable firm on the NYSE and has a market cap of $560 billion. They sell pretty everything people want to own and have tens of millions of subscribers to Amazon Prime. Most Amazon Prime members don’t even consider buying stuff anywhere else online.

Amazon is even bigger than online retailing, though. They also have Amazon Web Services, their cloud computing service, which brings in $5 billion a year in revenue. They bought Whole Foods last year for $13.7 billion. Ted Bauman says the goal of Jeff Bezos is building a monopoly.

However, Ted Bauman says that contrary to a lot of opinion Amazon is no monopoly. They could control half of online retail by 2021 and some people have called for the company to be broken up. Ted Bauman points out, though, that Walmart has three times as much revenue as Amazon does. They are increasingly being very successful in selling goods online as are eBay, Target, Apple, and Macy’s.

He points out that nine-tenths of all retail in America is done at traditional stores, not on Amazon. Amazon is no doubt a huge company but it’s not a monopoly, he argues, and is not even remotely on the verge of becoming one.

https://www.crunchbase.com/person/ted-bauman

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