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industry.

So I'm going to take a stab at explaining.

Amazon was founded in 1994 by, jeff Bezos.

And today it's the world's largest online retailer.

I submit that, as with all other large corporations, you cannot judge Amazon by the public statements of its executives ; they are at best uttered with an eye for strategic propaganda effects, and at worst they're deeply self-serving and deceptive.

Rather, you need to examine their underlying ideology and then the steps they takeand the actions they consider legitimatein order to achieve their goals.

Now, first, I'd like to introduce three keywords that need defining before you can understand Amazon: Disintermediation is the removal of intermediaries in a supply chain: "cutting out the middleman".

Instead of going through traditional distribution channels, which had some type of intermediate (such as a distributor, wholesaler, broker, or agent companies may now deal with every customer directly, for example via the Internet.

One important factor is a drop in the cost of servicing customers directly.

Disintermediation initiated by consumers is often the result of high market transparency, in that buyers are aware of supply prices direct from the manufacturer.

Buyers bypass the middlemen (wholesalers and retailers) in order to buy directly from the manufacturer and thereby pay less.

Buyers can alternatively elect to purchase from wholesalers.
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