Why I'm boycotting Amazon and where I'm going instead

Don't let Amazon take over the world! There are loads of great alternatives.
Amazon is a great company in many ways. It led the way in the online retail revolution and has offered quality goods at low prices. I reckon I’ve spent at least £1,500 there over the years – and that’s just on books and entertainment.
But I’m not going to shop there anymore. Here’s why:
1. Amazon pays very little tax in the UK
Amazon generated sales of £3.3 billion in the UK last year but didn’t pay a penny in corporation tax. The company is under investigation by the tax authorities.
This kind of behaviour sticks in my craw. I’d prefer to support businesses that give at least a little bit back to the UK.
2. It’s killing bookshops
I used to really enjoy browsing in small, cozy bookshops where an unexpected pleasure was always waiting on the next shelf. But it’s getting harder to do that because high street bookshops are dying. Borders and Books Etc have disappeared and they aren’t alone.
Between 2005 and 2011 the number of high street bookshops fell by 20% according to the Booksellers’ Association. The number of independent shops fell by 26%.
Now I admit that Amazon isn’t the only reason bookshops have been closing. Aggressive supermarkets have also played a role, but Amazon and the web in general have played a major part in this.
3. Amazon is just too powerful
It’s never healthy if one player in a market becomes too powerful. Consumers benefit for a while as prices stay low, but eventually, the dominant player becomes so strong, it can do pretty much as it pleases.
If we get to that stage in the UK book market, you can expect to pay higher prices and have less choice as fewer new titles are published.
Amazon has 70% of the online printed book market and was allowed last year to buy one of its strongest competitors, The Book Depository. That purchase has probably taken Amazon’s market share close to 75%.
And, of course, Amazon is even stronger in the ebook market. Ebook sales already account for 20% of UK book sales, and the Amazon Kindle has something like 70-90% of that market (I’ve been told different figures by people in the publishing industry).
Publishers are scared by Amazon’s power and I think that fear is well-founded.
It’s also worth noting that Amazon’s competitors are very critical of the company. You might say that’s just sour grapes and not a dispassionate view, but the level of criticism is both extreme and plausible.
Here’s just one quote from James Daunt, the CEO of Waterstone’s:
“"They [Amazon] never struck me as being a sort of business in the consumer's interest. They're a ruthless, money-making devil."
Where am I going to go instead?
I’m not going to completely give up on online purchases, but I’m going to try and buy more books on the high street.
Yes, high street prices are normally higher than the best online prices, but the differences often aren’t as great as you might expect. And I’m happy to pay a bit more in return for enjoying the whole bookshop experience.
And even when I do go online, I won’t have to pay much more than the Amazon price. At least for now. Here’s a random selections of books and CDs and their different prices at various retailers:
Book prices
Book |
Amazon (physical) |
Amazon Kindle |
Waterstone’s store |
||
The Hunger Games (Suzanne Collins) |
£3.99 (paperback) |
£3.46 |
£4.79 (paperback) |
£7.99 |
£5.59 (paperback) |
The Da Vinci Code (Dan Brown) |
£5.59 (paperback)
|
£4.94 |
Not available |
£7.99 |
£5.59 (paperback) |
I Am What I Am (John Barrowman) |
£5.68 (paperback) |
£4.72 |
Not available |
£7.99 |
£5.59 (paperback) |
War and Peace (Leo Tolstoy) |
£1.49 (Wordsworth paperback) |
49p |
£1.99 (Wordsworth paperback) |
£9.99 (Vintage) |
£1.39 (Wordsworth paperback) |
The Holy Grail of Macroeconomics (Richard Koo) |
£11.04 (paperback) |
£9.94 |
£14.44 |
Not available |
£11.89 (paperback) |
The Amazon prices that I’ve quoted are for books offered by the site itself, not by other sellers on Amazon Marketplace.
Overall, I’d say that Amazon tends to be cheapest, but others don’t do badly. I’ve used Bookstore.co.uk and have had good experiences. Moving away from the table, I also like base.com and the Foyles website.
Going forward, I also intend to use Bestbookprice.co.uk, where you can compare the best prices for books, CDs and DVDs. Interestingly, when it comes to bestsellers, branches of WHSmith often offer very competitive prices.
Let’s look at some CD prices:
album |
Amazon |
HMV online (no MP3) |
HMV Store |
Play.com |
iTunes (all MP3) |
7digital (all MP3) |
21 - Adele |
CD £6.99 MP3 £7.49 |
Cd £10
|
£10 |
CD £6.99 MP3 £7.99 |
£7.99 |
£7.99 |
MDNA - Madonna |
CD £8.99 MP3 £8.49 |
Cd £10 |
£10 |
CD £8.99 MP3 £9.99 |
£8.99 |
£7.99 |
Revolver - Beatles |
CD £7.04 (no MP3) |
Cd £6.49 |
£15 |
CD £9.99 (no MP3) |
£10.99 |
Unavailable |
Gold – ABBA |
CD £7.89 MP3 £7.49 |
Cd £4.99 |
£7 |
CD £4.97 MP3 £7.99 |
£8.99 |
£5.99 |
Rachmaninov piano concertos 1-4 (Ashkenazy) |
CD £7.49 MP3 £7.49 |
Unavailable |
Unavailable |
CD £7.49 (no MP3) |
£7.99 |
£7.49 |
Once again, Amazon is often the cheapest but not always.
Boycott
So the point is if you boycott Amazon, you should still be able to buy CDs and books at decent prices.
Now I know that sceptics will wonder why I’m worried about Amazon’s excessive market share when the consumer still seems to be benefitting. Just remember that Amazon could become even stronger in the next few years and that’s when the consumer might really start to suffer.
I should add that I know that Amazon sells many more products than just books and music. I’ve focused on these two areas for reasons of space but also because Amazon doesn’t appear to be as dominant in most other retail markets.
Anyway, my boycott has started. Are you going to join me? Let us know in the comments box below.
More on shopping:
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Comments
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Boycotting isn't enough and there won't be enough people doing it. I think this would work much better. Whenever you have a few minutes to spare, place a bunch of orders on Amazon (from Amazon, not marketplace sellers). Then immediately cancel the orders using the text, "Sorry, I have to cancel this order because I just remembered that Amazon avoids paying tax in the UK by artificially exporting its UK profits to Luxembourg, meaning that I (and every other tax payer) has to pay more tax than is really needed to make up for the shortfall caused by your (and other multinationals) tax avoidance. I know your tax avoidance is legal, but its also blatantly dishonest and I don't like buying things from dishonest businesses."
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ah, i see, i have contributed to this discussion some time ago. sorry :) it just came into my mailbox so i checked through... meanwhile - i think that amazon is already too powerful and too well established, that few activist against amazon will not make a big impact... the economy situation here is getting worse and people will depend more and more on cheaper online shops - not being able to afford new books at all... and what once was maybe a mainly book shop online, is today a completely different thing - it covers almost everything. it even allows to sell knifes online, what e-bay does not.
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i have learned my lesson when buying expensive brand new text books for study on amazon or e-bay. i could have saved a lot if i discovered second-hand online book shop, such as abe books, earlier. now they are my first point of try when i need to get some text book for my study. i do not mind that they were used before as far as they cover the material i need and they are the issue that is sufficient for my purposes. i tend to buy some things on amazon, but books - i rather search elsewhere.
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18 July 2013