Economist Ted Bauman Lays Out Why Amazon Isn’t A Monopoly

Economist Ted Bauman has a warning for investors in Amazon. They may think their investment is safer than it actually is, he wrote in a recent issue of his newsletter “The Bauman Report“. Jeff Bezos, the founder and chief executive officer of Amazon, may have filled the leadership role in the tech industry left vacant after Apple’s Steve Jobs died. However, if people think Amazon is a monopoly in the retail industry they are very much mistaken. See more on

Apple is a monopoly in the smartphone industry. Despite the number of Android phones that have been sold it’s the iPhone that controls this industry. It accounts for more than 75 percent of the annual revenues generated at Apple. Hundreds of millions of people around the world are locked into the Apple brand ecosystem. Apple was the first company to exceed $1 trillion in market cap.

Who is Ted Bauman you ask and why is he questioning Amazon? He’s been an economist for three decades, both in the United States and South Africa. After working for many years in the not-for-profit industry he started to write “The Bauman Report”, a financial newsletter that helps people manage their money. He teaches readers how to protect their assets and what low-risk investment strategies they should be using. He has over 100,000 subscribers.

Amazon isn’t as big as people believe. Ted Bauman says that despite the millions of Prime members and news reports of this company completely controlling online retail that isn’t actually the case. They’re big, no doubt. But less than 50 percent of online sales occur at Amazon. Rivals such as Walmart, Target, and Apple control 56 percent of the market.

Looking at overall retail sales, Amazon isn’t big at all. Ted Bauman surprises people when he tells them that just 5 percent of all retail sales are on the Amazon website. This is because physical stores aren’t nearly as dead as news articles like to proclaim. Kroger is actually a bigger firm than Amazon is. Competitors such as Big Lot, Kohl’s, Target, Walmart, and more are competitively priced with Amazon. The conclusion is Amazon isn’t a monopoly.


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