Amazon Closing Small Businesses

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Grahm Churchill, Staff Writer

Since the company was founded in 1994, Amazon has continued to dominate the competition, wiping out small businesses, shops, and many retail stores. People are finding a new way to shop online, and it is becoming the norm. Amazon sells almost everything one could think of. From phones to groceries, Amazon provides cheaper prices, offering free two-day delivery for almost every product. Being able to have almost anything delivered to your door seems like a great advancement, but there are many small businesses being forced to close.

 

So far in 2019, there is a record for the amount of retail stores closing in San Diego. Many family-owned businesses are closing due to increased online commerce. According to BankruptcyData, this year’s bankruptcy files are up 30%. Also, unemployment rates fell by 36,000 due to small businesses closing their doors. Due to the decrease in small business, it is becoming even harder to open new stores, which will only fuel Amazon’s domination by taking over retail completely. Sophomore Matias Gil said, “There is a correlation between Amazon’s constant innovation and small distributing companies since Amazon is using new technology to satisfy the customer in a faster and more effective way.” 

 

Some may argue that Amazon has nothing to do with these businesses closing, but there is a correlation. Even though Amazon says they “are not retailers”, people are not finding a need to go out and shop. Whatever they need can simply be delivered. Not only are small businesses being affected; even large retail chains are beginning to shut down. Stores like Toys R Us, Payless Shoes, and Radio Shack are no longer needed as Amazon sells all of their products.“I think that Amazon is getting more money every year, causing smaller shops to close due to people deciding to order their products as opposed to going out and buying it,” says Sophomore CJ Maggio. As Amazon continues to cut out the competition, more and more stores are closing down. Depending on how Amazon expands next, we may see even fewer small businesses out on the market.