Way Past Its Prime: How Did Amazon to Turn So Terrible?
You're not alone. Digital platforms are worsening, at an alarming pace. The tools we use daily, that previously delighted us? They're all transforming into disappointing experiences, in unison. Consider any social media user who must scroll through endless feeds of attention-seeking content, automated posts and targeted advertising only to find a single authentic update. This experience feels exasperating. Frustrating. And, considering how important these services are for your needs, it becomes terrifying.
Identifying the Process
Over the past period, a specific term has become popular to describe the rapid decline changing internet companies: platform decay. This expression has reached broad awareness. It signifies beyond simply a narrative about deterioration. It provides a structured understanding that reveals how online services deteriorate, the progression of this decline, and the spreading effect that's making all services to worsen simultaneously.
This current era we're living through, this widespread deterioration, represents a tangible occurrence, similar to a disease, complete with symptoms, a specific mechanism and an epidemiology. When medical professionals observe sick individuals affected by a new pathogen, their initial priority involves documenting the development pattern of the condition. This comprehensive record provides an ordered catalog of the condition's progression: which symptoms appear, and in what sequence?
The Triple Phase
Here's the natural history of platform deterioration:
- Initially, platforms treat their users well.
- Afterward, they start mistreating their audience to advantage their business customers.
- In the end, they turn against those commercial partners to retrieve all the advantages for themselves – and become a terrible experience.
This cycle emerges everywhere. After you learn this mechanism, you'll start noticing it repeatedly. Examine Amazon, an organization that started by enabling book delivery to your home and later transformed into the main choice for various goods, even as minimizing tax payments and stocking its virtual shelves with poor-quality items and various rubbish.
Phase 1: User-Friendly Beginnings
Amazon commenced with considerable funding that it could allocate toward its customers. The company raised significant investment from initial backers, then additional financing through stock market listing. Afterward, it used this capital to underwrite various goods, selling them below cost. Additionally, it supported transportation fees and implemented a flexible return system with minimal questions.
This compelling proposition convinced millions users to join the service. After they joined, the premium service successfully retained them. Advance payment for transportation annually in advance provides considerable reason to buy products on Amazon's platform. Indeed, the vast majority of Prime subscribers begin their online shopping queries through Amazon and, if they locate their desired products, generally avoid checking competitors for better deals.
You can conceptualize the membership program as a type of soft retention, Amazon linking you to its platform with invisible bonds. But Amazon also possesses more rigid constraints in its approach. All the audiobooks and video content, and nearly all electronic publications and online periodicals you acquire via Amazon are always connected to its platform.
They are distributed with digital rights management, a type of security created to require you to access content through applications that Amazon controls. When you cancel your Amazon relationship and remove your apps, you will forfeit all the media you previously bought from the marketplace. For specific categories of consumers, audience members or movie enthusiasts, this constitutes a substantial switching cost.
Amazon utilizes one additional strategy: after years of selling goods at a loss, it has accomplished the process that large retail chains began earlier, removing substantial numbers of small, independent brick-and-mortar stores. Its digital below-cost selling has generated parallel effects throughout large portions of the e-commerce world.
This reality indicates that shopping anywhere outside Amazon has become substantially less convenient. These strategies – the subscription model, content locking and loss-leading – present significant challenges to refrain from purchasing through Amazon. With shoppers effectively captured, to continue with the enshittification process, Amazon required to obtain its merchant partners equally trapped.
Phase 2: User Exploitation, Business Advantages
Amazon was originally extremely advantageous to its commercial partners. It reimbursed entirely for their merchandise, then distributed them below cost to its users. Furthermore, it paid for refund handling and user support. It operated a clean search engine, which presented the best matches for shoppers' queries in prominent locations, establishing pathways for businesses to prosper merely by providing reliable goods at appropriate rates.
After, when those sellers were firmly committed, Amazon increased pressure. Amazon proudly describes this method, which it terms "the flywheel". It draws customers with low prices and extensive selection. This appeals to merchants who are enthusiastic to sell to those shoppers. The sellers' reliance on those shoppers permits Amazon to extract improved margins from those merchants, and that brings in additional customers, which renders the service increasingly necessary for sellers, enabling the company to demand further price reductions – and the pattern perpetuates.
Let's examine this phenomenon more widely. This process illustrates the clear outcome of a radical legal theory that has controlled worldwide regulation since the late 1970s. From the 1890s up to the Carter presidency, American business influence was constrained by competition regulation, which considered {