What If Amazon Went Bankrupt?

What If Amazon Went Bankrupt?


In 1993 a man named Jeff Bezos started an
online bookstore. A year later he founded a company that would,
to some extent, change the world. That company was Amazon, and while at the
beginning all it sold was books, Bezos had big ideas for his online marketplace. That’s why he called it Amazon, because
the rainforest we all know by the same name is packed with diverse species of flora and
fauna. Bezos wanted his marketplace to be similarly
diverse, although with products. By the time 2011 rolled around this marketplace
was bringing in $17 billion in sales. Amazon branched out into other areas of tech
and entertainment and soon Mr. Bezos would become the richest man on the planet. In 2018 the yearly revenue for Amazon was
a cool $232 billion. Just how big is this company really and what
would the world be like without it? According to the website Statistica, Amazon
is the third biggest company in the world regarding market value. It’s said to be worth $916.1 billion. Only Microsoft and Apple are worth more, but
not by much. Well, we say not much, but still a few billion. According to Fortune Global 500 figures, Amazon
is the 13th largest company in the world in terms of yearly revenue right now. It’s not the largest retail company in the
world regarding that revenue, because Walmart is. If you want to know what companies are above
Amazon, just think oil and gas and automotive and electricity. Hopefully this helps you understand that Amazon
is one very big company. Of course you knew that, but perhaps you didn’t
know just how big it is. Think about it. A retail company standing with giants that
provide the world with power. After power and getting around, shopping is
serious business. E-commerce has gone from strength to strength
over the years, and we can bet some of you listening to this have at one time ordered
something from Amazon. We couldn’t say that only a few years ago. Forbes tells us that in 2018 we spent $2.86
trillion buying things online, and while there are many companies doing e-commerce none is
as successful as Amazon. This company heads the pack, so if it were
to just disappear there would be a lot of room for its competitors. The New York Times wrote in 2018 that “Amazon
earns 49 cents of every e-commerce dollar spent in the USA.” Out of the top ten e-commerce companies half
of them are from the USA, with four more based in China and just one in Germany. Forbes said look out for China, because its
e-commerce market is showing staggering growth. If Amazon were to go, would China fill the
space? Would Walmart start to focus more on online
sales? We are told that while Walmart is the great
behemoth of retail, only about 2.8 percent of its revenue comes from e-commerce. Staying with Walmart, you might know it’s
renowned for employing a lot of people. In fact, it employs more folks than any other
private company in the world. The number is something like 2,200,000 employees. It needs a lot of people to work in those
stores. Amazon, having its stores online can afford
to not hire as many people, but it still has a lot of employees working in warehouses,
offices, etc. It’s said it employed about 650,000 in 2018. If the company just disappeared that would
be a lot of folks out of work. Perhaps more people will be out of work anyway
once Amazon’s warehouses become more automated, but they might also be placed somewhere else. Some people might be glad they lost their
job, because as we write this the media is bubbling with criticism for what it calls
harsh working conditions at Amazon warehouses. Talking about robots, Amazon has around 100,000
of them employed worldwide, so they would be out of a job. We don’t think they’d mind, though. So far, we have a huge space in the market
to fill and a lot of people out of work. The change would be felt in terms of people
losing a job. In 2018 on its own website Amazon said that
in Seattle alone 45,000 were working for the company. Look at it this way, the Department of Numbers
tell us that in 2019 there are 76,824 unemployed people in the Seattle metropolitan area. We might think about what affect no Amazon
would have on folks and families in Seattle alone, and we can tell you some amount of
chaos would ensue after the Amazon disappearance. This would happen in many other cities, not
just in the U.S. but all over the world. While you might lose your favorite place for
buying books, some people would be looking at a crisis. You would be affected, too of course. In 2018 it was reported that in the USA five
percent of all retail sales were through Amazon. You’d have to shop somewhere else, and that
goes for Amazon’s 310 million active customers around the world. It’s said that in 2017 Amazon shipped more
than five billion products, so that would mean if Amazon were to go, a lot of people
would be upset. Fortune wrote that in 2018 that number increased
thanks to more Amazon Prime members. In 2019 during the Amazon Prime two day sales
event the company sold 175 million products, so that also tells you how indispensable this
company has become. Those Amazon Prime subscribers would have
a shock after the disappearance. We are told that 90 million Americans have
a Prime subscription, but Forbes wrote that by 2022 there will be 56 million Amazon Prime
Video subscribers in the U.S., and 122 million worldwide. Well, that’s not going to happen now. So, in those burgeoning markets of Japan,
Germany, and the UK, there will be many people left without their subscription. Then there are the third-party sellers on
Amazon, some of whom make a tidy profit from their business. More than 50 percent of sales on Amazon come
from these people, so they would have to look for a new job, too. Even people that don’t actually buy something
on Amazon use the platform just to check out prices. We are told in the USA nine out of ten people
use Amazon to check prices of things. This would all stop. People who just visit the site or perhaps
buy on the site are aplenty. In 2019 it’s said that every month 206 million
visit the site from around the planet. This equates to around $410 million dollars
a day in revenue, or $283,000 a minute, or $4,722 a second. In terms of where Amazon is based, it now
operates in the countries of the United States, the United Kingdom, Canada, France, Spain,
Germany, Ireland, Italy, Australia, Japan, China, India and Mexico. This is only where it operates, but it ships
to over 100 countries. If Amazon were to go, many people around the
world be affected. As for just inside the USA and the millennial
generation, well, they love Amazon more than anyone. According to a survey cited by the New York
Post, 77 percent of millennials would rather stop drinking alcohol for a year and 44 percent
would give up making love altogether for a year rather than give up buying stuff on Amazon. Does that mean if Amazon were to go they’d
start drinking more and getting it on? On top of all that, people and companies using
Amazon Web Services would be in a fix, as would people who rely on their Amazon Alexa. By 2021, Amazon said it hopes to have 3,000
cashierless Stores, so that would also be off the table. And finally, you would be able to write relentless.com
into your browser and not be sent to Amazon’s website. Yep, Bezos took that domain name. So how would you feel about a world with no
Amazon? Tell us in the comments. Then go watch our other video a “World Without
the Amazon Rainforest.” Thanks for watching, and as always, don’t
forget to like, share and subscribe. See you next time.

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About the Author: Oren Garnes

100 Comments

  1. Didn’t really even mention AWS(Amazon Web Services), which is where the majority of Amazon’s revenue comes from. Amazon looks more like a web hosting company than an e-commerce company these days.

  2. The world would benefit immensely. The free market would rise again, small business would stand a chance and people and neighbourhoods would all benefit.

  3. ⚠️⚠️⚠️Malls and stores have closed because of amazon. Retail is the number one job in America and people are losing their jobs due to automation and tech companies like amazon. There is only one presidential candidate who sees this economic problem and that’s why I’m voting for Andrew Yang. If you haven’t seen Joe Rogan interview him, please watch it or the breakfast club interview.

  4. I pulled my amazon order history report for the last 10 years and let's just say I'm embarrassed… Amazon will forever be in business.

  5. One day a terrorist, competitor, or even another nation will end Amazon by simply shipping some explosive and/or anthrax packages during Christmas (for example).

  6. The reality is, if amazon went bankrupt, another company or group would take and surpass its current state by applying whatever they thought would have made amazon better and including/excluding the thing that brought the giant to its fall.

  7. considering my dad worked at amazon and used to work at hp(he got fired b/c of bankrupcy) and hearing what if amazon went bankrupt kind of sounds ironic

  8. Amazon told me my order was delivered, AND IT WASN'T! Amazon sells things at higher prices. To cancel an order, you have to go thru a top-secret process. Shop at EBAY. They honor their refunds and orders DO arrive when expected.

  9. Uh, the market will provide and once the monopoly is broken we would see a competitive market until another monopoly forms. Maybe wish will have a growth boom

  10. Amazon begins purchasing all other retailers, eventually cornering the consumer products market. They change their name to "Omni-Consumer Products", before deciding to buy out an entire city and remake it in their image, which will be called "Delta-City". To help remove all crime, they decide to employ the use of cybernetic technology. At around this time, a Detroit police officer was nearly killed while making an arrest at an abandoned steel factory…

  11. I went to Sweden last year and couldn't figure out how they live. No amazon, no deliveries of stuff right to your door, no uber or lyft, no grubhub, nothing. Had to walk everywhere or catch the train. It was horrible lol.

  12. I love Amazon so much that i don't care that they got that huge tax break from the president. Free shipping with prime! Returns and refunds! I love Amazon!

  13. Even if you alone think you spend so much money and that they’ll never go bankrupt, people tend to underestimate just how big of a number “a trillion” is. Amazon doesn’t make money from the products ppl buy.

    Amazon makes most of its money off of cookies. They sell your internet history so google can place targeted ads.

    Also it makes most of its money off of not paying people and putting them in hard working conditions which is probably illegal and disregards basic human rights (almost to the point where it’s become like some sort of concentration camp) but that’s okay bc Amazon has this magic thing called money so just pay judges and politicians and you’ll get off scott free.

    And this, guys, is called capitalism.

  14. Circuit City would go back in business, then baxk into bankruptcy when i sue them for not upholding my warranty… Thats what would happen.

  15. I’ve worked at a Amazon warehouse before it’s not as bad as people make it seem the hardest part is the long hours that’s about it

  16. I just saw a video about what would happen if the sun went dark. Amazon going bankrupt would probably be like that. For some people, anyway.

  17. Gents, dont get married and try to start a multibillionaire company, they'll take half your business and make you broke, Speedwagon out

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