This year alone, over 160,000 small businesses closed by August according to a Yelp study. Small businesses that have led the way for closures this year include restaurants, shopping/retail, and spas/personal care. Of those closures, Florida suffered the third-highest number of permanent small business losses. Now, is Amazon to blame for all of this? No. Pandemic considerations are first, however, they progressively benefit every step of the way.
It’s often unknown that Amazon owns over 40 different big brands which include Whole Foods, Ring, Zappos among others. You wouldn’t think Amazon has assisted in the demise of some restaurants, but they have as many customers have opted for grocery delivery from their company-owned stores in lieu of takeout or restaurant delivery. You may not think they’d benefit from the closing of local apparel stores, but they have with their company-owned clothing brands offering delivery which includes the ability to ship any undesired items back for free. You wouldn’t think they’d benefit from the closure of spas and related personal care centers, but they have by selling people personal care products from their company owned brands. They’ve brilliantly acquired and created a portfolio of companies that address most aspects of our lives. Including brands that people don’t associate with the company but are owned by it.
There is simply no comparison between Amazon’s scale and impact on businesses of all sizes and it’s not a coincidence that in the most recent decade in which Amazon has been the biggest beneficiary of any company in the world, we have our first decade which has seen a net loss of employment within small businesses. Again, good for Amazon but it’s a reminder that if you value certain local businesses, it’s important to prioritize them in your shopping habits.
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