4 Ways Jeff Bezos and Amazon Changed the Way We Spend
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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Whether you’re a consumer of Amazon or not, the e-commerce giant has undeniably reshaped the way people shop and even spend money in many ways.
What began as a way to sell books in Jeff Bezos’ garage has transformed into a behemoth with a market cap of $2.3 trillion, making Bezos a billionaire and one of the world’s richest people.
Many people use Amazon so seamlessly and without much thought now that it may be hard to remember a time before it. Here’s a look at how it has changed the U.S., and even other countries’ shopping and spending habits.
Improved Affordability … at a Cost
While there are legitimate concerns that Amazon’s low-cost strategy puts other kinds of companies out of business or makes it tough to compete, there’s no doubt that Amazon is one of the more affordable places to buy many things. According to an independent study by Profitero, Amazon came in as the most affordable online retailer out of 22 retailers in 2024 for everything from toys to electronics and then some, beating out even Walmart, Best Buy and Target’s online marketplaces.
On the positive side, Amazon’s prices are transparent and competitive, which has driven other online retailers to do the same, known as the “Amazon Effect,” according to Digital Nomad.
Better Convenience but More Overspending
Amazon was one of the first to offer an online membership like Amazon Prime that gave consumers free shipping, incentivizing people to do more of their shopping at Amazon. According to Texas A&M, additional features, including exclusive deals and streaming services, offered along with the membership have encouraged more people to do their shopping there. However, Amazon’s clever marketing with deals, discounts, specials, Prime Days and more makes it all too easy to overspend or buy things you don’t need.
Seamless Shopping
Amazon’s ability to integrate technology for seamless or “frictionless” shopping — saving customer payment and shipping info, remembering your purchases and offering you similar products based on your choices — has pushed for greater demand of this kind of technology in other shopping experiences.
Impact on Physical Retailers
If it seems like you do more of your shopping online and less in brick and mortar stores, this, too, may be a result of Amazon’s business model making it easier and more convenient for many people to shop this way.
While it may drive more physical retailers out of business on the one hand, on the other, according to the Smart Sense blog, it’s also pushed more in-person retailers to incorporate seamless shopping experiences, such as self-checkout, loyalty app perks and more to these spaces.
In summary, Amazon has made shopping easier and more affordable in many ways, but also set people up to make overspending and overshopping a little too easy.
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