Customers love using Amazon. Investors love Amazon because of their continuing growth and domination. However, the Wall Street Journal says many small businesses regret talking with and doing business with Amazon because – to take a line from Shark Tank’s Kevin O’Leary – they get crushed like the tiny critters they are.
The Wall Street Journal said they interviewed two dozen entrepreneurs, investors and deal advisors and they said Amazon often used the investment and deal making process to develop competing products.
There are always two sides to every coin. One side is what everyone sees and applauds. However, the other side is where the sausage is made and that can apparently get pretty darn ugly and messy.
Most people think that while this behavior may not be illegal, it is simply not right for a behemoth like Amazon to lure trusting and unsuspecting entrepreneurs who think they just struck gold into their spider web, and then strike.
Amazon should take high road and work with entrepreneurs
Why does Amazon have to attack entrepreneurs with good ideas? What can’t they just work together, and both be successful? They are enormous. Why can’t they encourage small business with big ideas? Why do they have to look at life as kill or be killed? What if other larger companies did that to Amazon in their young years?
This makes no sense. They could continue to grow working with entrepreneurs with new ideas. They could continue to grow helping entrepreneurs become successful. They could create a garden where all could share in the growth.
Instead, its predatory position kills many entrepreneurs they deal with. Small businesses who cannot defend themselves.
This means Amazon can get this one product, but can no longer expect new ideas to come from successful partnerships. Plus, that kind of reputation scares many entrepreneurs away in the first place.
This behavior ultimately hurts Amazon.com
The way Amazon is behaving and treating entrepreneurs may be a short-term success, but long-term, no one will trust them and do business with them.
Is that the world it wants to create? Really?
As a customer, I think Amazon treats customers well. However, when it comes to partners, they are apparently very dangerous.
I fear this may hurt Amazon growth in the long-term. However, like the old saying goes, they are making their own bed.
Amazon should be a partner, not a predator
That’s right, Amazon does not seem to realize it but, they are creating the world they will compete in going forward.
Instead of a benevolent online leader who helps create new success stories where everyone wins, they are creating a miserable marketplace where their brand name is becoming one which the entrepreneur and partner just wants to avoid like the plague, rather than work together.
I’ve been hearing this same story, time and time again over quite a long period of time. As I am sure you have as well.
Amazon, Microsoft, Apple, Google, Facebook and others
Actually, over the last few decades we have heard similar stories about Microsoft, Apple, Google, Facebook and so many other leaders.
Sometimes, new companies have to behave badly to become established. When the become successful, they should throttle back and encourage competition, not stamp it out. Otherwise, they just become giant bully’s standing in the way of other great, new ideas.
So, it’s happened in the past, it’s happening today, and it will unfortunately very likely continue to happen going forward.
It’s unfortunate big companies simply seem unable to change until they are forced to do so by regulation. That’s the last thing I want to see, but it’s what always happens.
Like you, I love what Amazon has done. I have a lot of respect for them in that regard. That being said, eventually they will very likely have to wrestle with all the carnage they are creating.
So, why is Amazon taking this wrong path? Why aren’t they the benevolent player in today’s business world? Who knows, but it is a big mistake for them in the long-term.
