Brief - The Hustle

Amazon wants to be the official platform of the government’s online shopping addiction

Written by Wes Schlagenhauf | Jun 30, 2020 9:27:34 AM

Axios reports that a new program could allow federal government workers to make cheap purchases via online shopping, tapping a potential $6-8B market.

Naturally, Amazon is pitching governments to adopt its Amazon Business product — a marketplace built for corporations who often buy products in bulk or for specific workplace needs. 

Problem is…

In the same way the consumer-focused platform gives Amazon a cut of 3rd-party sales, its business product does too. And the money government officials spend usually comes from taxpayer dollars.

Critics are sounding the alarms

Federal and local officials collectively spend billions of dollars a year on goods and services, ranging from copy paper to musical instruments for schools.

Critics argue that Amazon’s attempt to take those dollars gives taxpayers the short end of the stick, and we bet you can guess who gets the long end…