Why I Won’t Do Business With Amazon

Amazon Is Nigh a MonopolyIf you’ve poked around this site, you’ll find ordering information for my collection RED DOT IRREAL on the main page. Some folks have asked why the e-version is available at so many outlets (Smashwords, Studio Circle Six, Weightless Books, iBookstore, Nook Store, Goodreads, Kobo, Diesel), but not at the Amazon Kindle e-book store (even though the MOBI file is available directly from Smashwords). Amazon* is the biggest seller of e-books on the planet, so it only makes sense to have my book listed there, right? The big outlying success stories with e-books (Amanda Hocking, J.A. Konrath, Michael Prescott, etc.) were only made possible because of exposure at the Kindle Store, and because my book is a story collection (a format that is generally not popular with book buyers), it could use all the help it could in terms of exposure, right? Am I just a doubleplusmoron for deciding against selling my book there?

The answer is no. Well, at least, I hope not (although if I was a doubleplusmoron, I wouldn’t have the cognitive capacity to recognize that I was in the first place). It’s true that Amazon is the biggest game in town, and I understand this quite well. When I still lived in the States, I frequently ordered from them in addition to supporting my local indie bookstores; it’s hard to say no to their aggressively low prices and prompt deliveries. However, I now refuse to do business with them anymore, as a consumer, an author, or a publisher. Here’s why.

1. Amazon is the Wal-Mart of the Internet.

Wal-Mart gained their reputation by having the lowest prices on the products they carry, lower than anywhere else. They accomplished this by pressuring their suppliers to give them increasingly deep discounts so that they could keep prices low. An effect of this is that the manufacturers of those products, very often found in China and India, were pressured by the suppliers to also reduce costs. This in turn has led to many unfair labor practices in those countries, such as inconsistent pay periods, mandatory overtime (with no extra pay), lax safety conditions, lack of worker’s compensation, militant anti-unionism, and zero job security. Another effect is seen at the consumer level, where Wal-Mart has pushed many independent businesses into bankruptcy because they just couldn’t discount as deeply.

Wal-Mart has an online e-commerce store, but the vast majority of their sales still come from their plethora of gigantic superstores that blanket the USA. They depend on the physical presence of these storefronts to drive their sales. Amazon has no need for actual physical shops, and they never have. All of their sales come from online. Amazon is also well-known for deep-discounting the many items on their site, and their tactics are very similar to Wal-Mart’s in being able to force those prices down. Yet in terms of e-commerce, they’ve actually out-Wal-Marted Wal-Mart.

As an increasingly ethical consumer, I want to support companies with fair business practices, who treat the people who work both for them and with them in a moral and ethical way. Amazon has repeatedly shown that their bottom line is the bottom line, and while customers get to reap these low prices and become brand-loyal to Amazon, every one else up the supply chain is hurting.

2. Amazon Treats Its Own Employees Like Shit

Taking a page from its suppliers in China, Amazon treats its own factory workers as dispensable and beneath the concern of basic human rights. They have to store all the stuff that they import in giant warehouses with either little or no ventilation, and where the temperatures rise to intolerable levels inside; during summer heat waves, workers pass out so routinely that “Amazon arranged to have paramedics parked in ambulances outside, ready to treat workers.” Is this really the way to treat the people who physically store and ship the items you sell?

Amazon pushes these workers beyond their limits, then reprimands them for their “low” levels of productivity and threatenes to fire them if they don’t do better. “The consequences of not meeting work expectations were regularly on display, as employees lost their jobs and got escorted out of the warehouse.” If a worker is genuinely lazy and not pulling their weight, that’s one thing, but to systematically treat all its employees as discardable interchangeable exploitable robots is quite another. It’s horrible enough that theses practice are happening in China, but it’s abominable that they’re also taking place in the USA in the 21st Century.

3. Amazon Hates Brick-and-Mortar Shops

This past Christmas, Amazon launched a “Price Check” app on both the iPhone and Android stores, and encouraged people to walk into their neighborhood shops, scan the prices of the items they wanted, then walk out of the store and order them on Amazon instead. This deal didn’t apply to bookstores, but almost any other independent or chain store could be targeted. This was a despicable way for Amazon to get free labor in determining prices from their competitors, and further encouraged the idea that “cheaper is better,” no matter the impact to the businesses being infiltrated by this behavior.

As part of its “Wal-Mart Attitude,” Amazon wants to be all things to all people, the virtual analog to Buy N Large. It’s true that companies will send employees to visit their competitors in order to keep updated on selection and pricing; this is a legal practice and it encourages openness in competition. However, sending your customers to get this information, with the compensation being a tiny discount on an Amazon order, leaves a terrible taste in the mouth. I get the sense that if Amazon obliterated all physical storefronts everywhere, its stockholders would not be able to stop orgasming long enough to spend their massive stacks of money.

Note that this tactic was aimed both at chain stores and at independent shops, but the indies would have been hit particularly hard by this. Indie stores provide a sense of neighborhood and local import that chains do not, and the money earned by these shops tends to stay within the community; taxes from these local stores go toward improving infrastructure, maintaining public parks, keeping public libraries open, etc. Chain stores and e-commerce sites like Amazon owe nothing to any community, and the profits earned go directly into the stockholders’ pockets. Which leads to my next point.

4. Amazon Refuses to Collect Sales Taxes

Amazon only grudgingly collects sales tax in five US states, and has fought vigorously to avoid collecting taxes in the others, even “where Amazon has a clear physical presence via distribution centers and wholly owned subsidiaries.” This gives it an unfair advantage over other brick-and-mortar and online stores, and denies that tax money to the state governments. Their logic seems to be that because they do not have a physical storefront presence, the laws that apply to physical businesses do not apply to them, especially because there is no federal sales tax. Each state must negotiate with Amazon on its own, even though Amazon may own a warehouse or distribution center in that state, or the trucks delivering Amazon’s products must drive on roads that run through that state, or their employees must rely on public services such as police or firefighters to remain safe in that state, or the customers who buy Amazon’s products pay for them from that state.

Because Amazon refuses to collect these taxes, they can keep their prices low, and continue to cement their market superiority. And when state governments do indeed pursue sales taxes from Amazon, such as in California, Amazon “threatened to cut ties with more than 10,000 California-based websites that get revenue through the Internet giant’s affiliate program if California passes a law to tax online sales.” In Texas, Amazon closed “its suburban Dallas distribution center amid a dispute with the state over millions in state sales taxes.” Instead of working with these state governments, Amazon is content to bully them into a free ride, and then cut and run if they don’t get their way.

5. Amazon Wants To Be the Only E-book Retailer Anywhere

Ever since the Kindle was launched in 2007, Amazon has hawkishly pushed e-books as the next stage in consumer literature. The argument for e-books has been around since I was in high school (when my dad first showed me an article about e-ink technology), but it wasn’t until the last couple of years when e-readers, and Kindles in particular, became affordable to much larger groups of people. Amazon now sells its Kindle and Kindle Fire at a loss, because it knows it can make back its money by providing inexpensive content wrapped in DRM through its devices. Amazon also does this to drive out the competition, essentially forming a monopoly, at which time they are free to raise prices again because no one will have anywhere else to go.

As you might imagine, book publishers aren’t too happy about this. Already, for years they’ve had to sell their books at massive discounts to be listed on Amazon’s site at all, and then, they’re being told that Amazon will be the only retailer to sell their e-books. Thankfully, EPUB became the e-book format standard rather than Amazon’s proprietary MOBI format, and pretty much any e-reader out there now can read it, including the Barnes & Noble NOOK, which seems to be the only major competition for the Kindle right now**.

Two years ago, Apple developed the iBookstore for the iPad and iPhone, and the big publishing conglomerates (often called “The Big Six”) leapt at the chance to make their titles available on such widespread and loved devices. Buy this action, Apple could take enough business away from Amazon that it would definitely impact their bottom line. So, in retaliation for this move, Amazon pulled most or all of the listed books from publisher Macmillan (including all paper editions, not just electronic) from their online store. The listings remained on the site, but the “Buy” buttons were removed.

This hit quite close to home. I’m not published by Macmillan, but many of my writer friends are (at publishers like FSG, Henry Holt, Picador, St. Martin’s Press, and Tor). They never asked to get caught up in this fight, but by delisting these books, Amazon denied them money from royalties that would have been made had the “Buy” buttons remained up during this time. Amazon purposefully took money away from my friends, and this pissed me off. Thankfully, Amazon backed off, and relisted the books, but there was nothing to stop them from doing so again.

And again they have. Just last week, Amazon pulled more than 4,000 books from its site in order to pressure the Independent Publishers Group, one of the USA’s largest book distributors, into renegotiating their contractual terms to move things more toward Amazon’s favor. The books by the publishers distributed by IPG are now delisted from the Kindle e-book store, and the situation remains unresolved at this point. In response, the Science Fiction & Fantasy Writers of America (SFWA) are now redirecting all Amazon.com links on their site, and replacing them with links to IndieBound, Powells, and B&N; I’ve had my criticisms of SFWA over the years, but I’ve been more and more impressed with them during John Scalzi’s recent tenure as President, and this action made me respect them so much that I finally, just yesterday, applied for active membership.

6. Amazon is All About Locking You Into Your Content

As I mentioned above, the default file format for Kindle e-books is MOBI, and these are designed to be read either on a Kindle device or in a Kindle app on the iPad (for example). If you buy a book in the Kindle store, you cannot read that book on a NOOK or a Samsung Galaxy Tab or a Sony Reader. That book has been restricted with Digital Rights Management (DRM), one of the most euphemistically insidious concepts to come out of the late 20th. DRM locks you into one device or one format, and it is non-transferable. Cory Doctorow, speaking at a writers festival in Melbourne, put it this way: “It’s as if every time you bought a book at Borders, you were locked into only shelving it in an IKEA bookcase. If you wanted to sell your books through the local independent bookseller down the road, your readers would have to throw away all the books they had bought and buy new copies to shelve on their new bookcases.”

DRM was ostensibly created to thwart piracy of electronic movies, books, and music, but any DRM can be (and has been) broken by a barely interested hacker with a free weekend, which means DRM has proven to be utterly useless in this regard. What it does instead is lock ordinary people into one device or format, and then punish them if they go outside of it. As Charles Stross mentions in “Cutting Their Own Throats“: “If you buy a book that you can only read on the Kindle, you’re naturally going to be reluctant to move to other ebook platforms that can’t read those locked Kindle ebooks — and even more reluctant to buy ebooks from rival stores that use incompatible DRM.”

I’ve mentioned in previous posts that I got a NOOK Simple Touch from my parents for Christmas, and I’ve really enjoyed it in the two months I’ve used it thus far; however, I’m always aware that I don’t really own the books that I’ve bought for it, I’m only licensing them. As opposed to paper books that I can display on my bookshelves, or loan to a friend, or sell to a secondhand bookshop, the books I’ve bought for the NOOK exist only on my device and in my NOOK Library; I can’t actually access these files so as to, say, transfer them to my MacBook and read them with Adobe Digital Editions, so my philosophy is to only buy books through the NOOK e-book store that I wouldn’t have normally paid for, or may have only checked out from the library. That way, if I “lose” them for whatever reason I won’t be too terribly put out. For the e-books for which I would like to keep the files, I head to Weightless Books or Smashwords.

Now, as I say, DRM is by no means exclusive to Amazon, but because they are so singularly proprietary about their formats and devices, they are perhaps one of the most perfidious perpetrators of the concept. Amazon’s ideal situation is this: an author publishes her work through Amazon (either through the Kindle Direct Publishing program or through their new publishing arm), Amazon distributes the work through their website alone, and then readers read the work on their Kindles, with Amazon becoming a one-stop shop for everything related to the bookselling process.

This doesn’t even get into the fact that Amazon can reach into any Kindle anywhere and remotely delete its content, nor does it address the stranglehold Amazon wants to have on its book data so it can dictate that third-party sites like Goodreads can only provide links to the Amazon store and no others (to which Goodreads said buh-bye to Amazon), nor does it bring up the many many companies that utilize Amazon Web Services (like Wikileaks before Cablegate) and Amazon Payments (like Kickstarter) who are beholden in their content and payment methods to Amazon’s increasingly restrictive and bureaucratically complicated terms of service.

One company should not have so much commercial power, because, to paraphrase Lord Acton (and not Shakespeare, to whom this is usually attributed), it has been absolutely corrupted by it. Amazon is the biggest bully on the block, and is able to dictate its unfair terms to the world, and so I will no longer have anything to do with them if I can possibly help it. As stated before, I’m not interested in punishing Kindle-users, and so if you would like to buy RED DOT IRREAL to read on the Kindle, you can find it in that format and in many others, DRM-free, at Smashwords.

POSTSCRIPT: An Anti-Amazon Addendum


* You may notice that I personify Amazon quite a bit in this blog post, although I am firmly against the belief that corporations have personhood. So when I refer to “Amazon” here, I’m typically talking about CEO Jeff Bezos and the company’s board of directors.

** In terms of devices, it’s hard to say that the Apple iPad is a competitor for the Kindle, as it was always intended to be a tablet first and an e-reader later, although with the recent release of the Kindle Fire and NOOK Tablet, these distinctions are slowly evaporating.

19 Comments

Filed under Books, Publishing, Red Dot Irreal, Writing

19 responses to “Why I Won’t Do Business With Amazon

  1. Amazon doesn’t fire its warehouse employees – because it has none. It very cleverly (for purposes of not being sued) hires other companies to supply “permanent temps” to work the warehouses it owns, and those companies DO treat people like shit and fire them if they don’t perform according to almost impossible-to-sustain, physically crippling levels of productivity:

    http://motherjones.com/politics/2012/02/mac-mcclelland-free-online-shipping-warehouses-labor

  2. And that is why I love my Nook.

  3. Reblogged this on Cheryl Murphy Writes and commented:
    And this, folks, is why I have Nook.

  4. Jason, You are so right about Amazon. I maintain that with social networking, the problem of distribution is minimal… if your audience is looking for you, they can find you on the web. So the real problem is building demand for your work. Why let Amazon dictate how your work is sold?

    • Exactly, although building that demand is really hard work. I’ve been on Facebook and Twitter since they were released to the general public, and I’ve been blogging for more than ten years, so I hope that’s gained me a bit of an audience.

      • It has! I just found you!–and I’ve quoted some of what you’ve written here, on my own FB page. Thank you so much for this article, Jason.

        After buying a Kindle Fire HD [which I do like] yesterday at a brick-and-mortar retailer, I had problems with Amazon dot com [which I now hate] later in the day, when I tried to purchase an app. Unbeknownst to me, they had my Kindle locked into a “subscribed” state (for purposes of their Special Offers sales baloney). Which I am now obligated TO PAY $15.00 to UNSUBSCRIBE from!!
        I look at it as a Small Price to Pay: to NEVER do business w/them again.

        Now I know I am not alone. Thank you, THANK YOU!!

  5. I haven’t done business with WalMart since 1990, not because of their horrible business practices, but because when WalMart first came to my neighborhood, the products they sold were inferior and their service was horrible. When it became clear that they were an abusive company, it made me feel that much better about not patronizing them.

    But when you can get good products cheaply on Amazon and their customer service is decent, it’s a little harder. I’ll admit, I didn’t know how abusive they were to their employees, and the whole “creating a financial negative feedback loop” thing really bothers me. I’m slightly embarrassed that it took an expat to point out to me what’s going on in my own neighborhood. Except that, I guess, the internet is everyone’s neighborhood.

    Thanks!

    • My reaction the first time I ever went into a Wal-Mart was claustrophobia; the aisles were positioned so close together to maximize space that I felt closed in by them. I still find it hard to walk into one without feeling extremely uncomfortable.

      To play devil’s advocate, they do provide products at a price that is affordable for many people who wouldn’t be able to buy them elsewhere. And they have the influence to positively impact product waste (like cardboard boxes for things like deodorant, which were discontinued several years ago). But they have a long way to go; the record of their negative actions still vastly overwhelms the good things they’re doing.

  6. LBT

    I always felt leery about Amazon, especially after that George Orwell Kindle fiasco a few years back. This just makes me feel better about being a Luddite.

  7. bannog

    I am still happy with my Kindle, for several reasons: First, because I like the e-ink screen. Second, because of the battery life that’s weeks rather than the more common run-to-the-next-powersocket lifetime of backlit displays. Third, because it’s small enough to fit in my inside pocket and light enough to read even if I have to stand in the Tubes. And fourth, because Amazon considers it a loss leader, which means that I’ve probably got it below cost. If they’re expecting me to buy any of their books, then they will be disappointed.

    I bought mine at a shop, and haven’t bothered to give it access to any WiFi network, let alone “Whispernet”. (Does anyone else interprete that as whispering about me behind my back?) I have one genuine paid-for book on it (Diane Duane’s “A Wizard Abroad”), which I bought from her directly. The rest of the books on there are either my own work, or Project Gutenberg products. I flat-out refuse to buy anything with DRM on it.

    It’s a bit depressing, though. Here we have the Internet. For a few dozen quid per year, you can rent enough space on-line to store more books than you can read in your whole life. You can arrange for people to pay you money to have a file emailed to them while you sit back and write the next book. The only problem is when people think books, they think Amazon, so if you’re *not* Amazon you just don’t get the attention. And I really can’t figure out how to fix that.

    • I think DRM is a detriment to indie authors. But there’s no reason we can’t use the Kindle technology (without the DRM) for our own efforts, profiting from their research and development and applying it to our own needs. No doubt about it, the small size and the e-ink screen make a nice compact, sturdy device with good battery life. It’s a good product, especially since we can easily convert EPUB files to MOBI format and sell DRM-free books that will work on the Kindle. Hopefully, there is a grassroots movement will change the way people think about publishing. Spread the word! Be heard above the Amazon roar.

      • Which is exactly why I’m not punishing Kindle owners by making my book unavailable to them; they can always buy the MOBI file direct from Smashwords to read on their Kindles. I just didn’t want to give Amazon any kind of cut from my sales.

    • All of those advantage you mention about the Kindle can also be attributed to the NOOK, which is why I wanted that instead. But good on ya for not participated in Amazon’s commercialism cycle!

      And you’re right about Amazon dominating the conversation in terms of e-books; it’s indeed a problem, and I don’t have the solution.

  8. Pingback: An Anti-Amazon Addendum | Jason Erik Lundberg

  9. Pingback: Amazon Again | Jason Erik Lundberg

  10. Kayla Sonergoran

    I don’t buy from people who don’t sell their items on Amazon. I don’t trust those authors at all.

    Amazon has done more to earn my money than B&N and other retailers. So I will continue you to support them first and foremost.

    • That is certainly your prerogative. But I have to ask: If I make a choice to not partner up with a dispassionate corporate conglomerate, what does trust have to do with it? And why the hell would you even care?

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