I think it’s worth noting that this is the effect of the free market behaving as designed, however no one has risen up to challenge Amazon enough along the way. So many retailers ignored e-commerce in the early days and went on with business as usual. Fast forward 20 years and Amazon has eaten into their market shares. A large retailer like WalMart absolutely has the ability to challenge Amazon by investing in the user experience and warehousing/delivery infrastructure. But often the old heads at these companies ignore improving the user experience in favor of making cuts. Amazon didn’t happen overnight. It’s been a steady growth in their business model over decades and the user experience is key to what made them so popular. It takes seconds to find what you want, for often times cheaper than the competition and in many cases the shipping is lower and faster.

What would be difficult is for a start up company with little capital to try and take on these behemoths. Perhaps a coalition of large companies like Target, Best Buy, B&N, Kohl’s, etc. grouping together to create a large distribution network and app platform with a good user experience could compete.

Just a thought.

AWS is a whole other can of worms.