do you know the hidden costs behind amazon?

Think twice before you buy.

In an era where a single click promises instant gratification, the allure of Amazon’s convenience has seduced over 310 million consumers globally. As we approach Amazon Prime Days this July, it is vital that we consider the consequences of our purchases and recognize where our dollars spent on Amazon actually go.

Behind the facade of “unbeatable” deals and lightning-fast delivery lies a behemoth that’s rapidly monopolizing the 21st-century marketplace. Amazon’s infrastructure allows sellers to reach vast audiences while consumers access an endless array of products without leaving the comfort of their homes. But this seemingly win-win scenario masks a troubling reality: as Amazon sets the e-commerce standard, growing its influence and market power, it doesn’t just dominate the market—it becomes the market. The more we acknowledge its practicality, the more traction it gains, and with that traction comes the resources to develop a system that outcompetes and overwhelms all other retail platforms.

The consequences of Amazon’s unchecked growth are far-reaching and profound. From suffocating independent businesses to exploiting workers and ravaging the environment, the true price of Prime extends far beyond the annual subscription fee. As consumers, we hold at least some power to be thoughtful about our purchasing decisions. But first, we must confront the uncomfortable truth: our Prime memberships are fueling a system that undermines the very communities we call home.

In 2023, Amazon Prime Day generated a staggering $12.9 billion. With Prime membership skyrocketing by 568% over the past decade, this figure is set to balloon further, devouring the profits of independent vendors in its wake.

But where does the money go? Certainly not to the sellers.

In 2014, 81% of revenue circulated back to original sellers. By 2021, that number plummeted to 66%. Nowadays, between referral, fulfillment (a combination of storage, shipping, and customer service expenses), and advertising fees, many sellers receive less than half of their product’s price. The result? Over 100,000 independent retailers have shuttered in the last 15 years, according to the Institute for Local Self-Reliance.

Even we, the consumers, aren’t immune to Amazon’s monopoly power. Lured by personalized algorithms and effective advertising, the average American now spends nearly $100 monthly on sometimes unnecessary Amazon purchases. This addictive, game-like shopping experience not only strains our wallets but also erodes our connection to our local economies and discourages us from being deliberate with our spending.

With Amazon’s continued efforts to dehumanize the shopping experience and practically eradicate contact between buyers and sellers, consumers are less likely to feel personal accountability for the well-being of their retailers. This phenomenon works in Amazon’s favor; even once we become aware of the issue, the guilt of contributing to Amazon’s abuse of its market power diminishes with each passing day.

And let’s not forget the environmental toll. Despite Amazon’s green promises, independent reports suggest its carbon dioxide emissions exceed 70 million metric tons—a figure the company consistently underreports. Each Prime delivery, each warehoused item, contributes to a carbon footprint that our planet can ill afford.

As we continue to emerge from the isolation of the pandemic and face the mounting challenges of climate change, we have a choice to make.

This Prime Day, we urge you to pause before you click “Buy Now.” Consider the hidden costs of that tempting deal. Instead, take a walk down your local main street. Rediscover the charm of independent bookstores, the personal touch of family-owned hardware stores, the freshness of local produce markets. By choosing to shop locally, we not only support our neighbors and strengthen our communities but also take a stand against corporate monopolies that threaten the very fabric of our society.

It is clear that Amazon’s market control cannot be dismantled nor locally redistributed overnight. However, a vibrant, personal, and independently-driven local economy still exists behind all of Amazon’s bells and whistles. As we recover from the isolationism of the pandemic and battle the effects of climate change, now is the time to revisit and revitalize our childhood shops and our mom-and-pops — to remind ourselves of the value of community.

The convenience of Amazon comes at a price far higher than what’s listed on their platform. It’s time we reevaluate what truly matters: the vitality of our communities, the dignity of workers, the health of our planet, and the diversity of our marketplace.

This Prime Day, make a statement. Be vocal, shop local. The future of our communities depends on it.

 
 
Cambridge Local First