Or it could be the lack of change in top ranked inventory for toys and other holiday sellers year over year. The same SEO gamified titles and descriptions are keeping the same products on top and once kids get the gamut parents have to go look elsewhere for holiday gifts. If that happens in the toys section, it likely happens elsewhere as well. The attractiveness of top products on basic search has gone down substantially.
Amazon Says Labor, Fulfillment Costs May Wipe Out Holiday Profit | Hacker News
GCG has said for years (and been wrong for years) that Amazon's business model doesn't make sense. How can delivering tooth paste to your door be a good business? It's a horrible business. Amazon took the economics of the internet (zero marginal cost & long tail) and turned it upside down (massive marginal cost & daily staples). The reason Amazon has no competitors in that business is that it's a horrible business. Norm Macdonald has a funny bit about Germany declaring war on the entire world ("I don't know if you're a history buff") and Amazon basically declared war on the entire retail industry and it is going to lose. Essentially Amazon is the Sears of the internet: it will get eaten alive by the middle of the mall as customers venture out from the anchor locations. I say this as someone who doesn't use Amazon except for used books that aren't available on BetterWorldBooks (which usually has lower prices, but selection isn't as good). Ebay has better selection & prices for computers and tennis rackets and kitchen items and it's amazing how efficient pricing at eBay is, there are almost no genuine bargains.
