this post was submitted on 21 Feb 2025
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Hi folks! I'm here with another idea. Let's make an amazon alternative. I know! I know! That was asked for a couple times already but lets discuss some details.

Amazon is basically glorified dropshipping by now. What if we just made federated (not sure if over activitypub would work) ads and sales, powered by fediseer (the "trust" network of the fediverse).

Example 1: So you buy at toms groceries, you trust them. they have experience with tina's hardware store and they trust them. so you can buy both toms and tinas wares on both sites.

Example 2: So for example, I run a small business that sells computers. You run a small business that sells mice and keyboards. I have worked with you before so I mark you as trusted in my local website, which federates with yours, showing your products in my shop. If a customer buys my computer and buys your keyboard on top, my site sends you a buy order with customer address and payment. I get a small fee for my electricity of say 1%.

Can someone try and poke holes in this idea? It feels like this could work!

Have a nice weekend.

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[–] ericjmorey@discuss.online 8 points 2 hours ago

You don't seem to understand the retail operations of Amazon. They provide logistics and marketing services to retailers, they also directly compete against those retailers because those retailers can't do better at logistics and marketing without using Amazon's services.

[–] daniskarma@lemmy.dbzer0.com 5 points 4 hours ago (1 children)

I really don't see the appeal of activity-pub for this.

It's a protocol used for social media and interactions. You describe just sort of a "metastore".

Maybe a review store site could work better with activity pub.

[–] asdfasdfasdf@lemmy.world 1 points 2 hours ago (1 children)

I think it makes sense. It would allow a decentralized unified search across all stores. With Lemmy I can search posts as long as the instance is federated. With this I could find products.

[–] daniskarma@lemmy.dbzer0.com 2 points 2 hours ago (1 children)

In this example instances are stores, stores are users in instances? How stores are protected to be defederated by competitors (we are talking about money and making a living here).

What it adds to just a simple centralized service that any store can join. If you don't want it to be another amazon, make that service a coop. or some kinds of non-profit that it's paid by the stores that want to become part of that.

I think here we are in the classic conundrum of "a solution in search of a problem".

Fediverse and ActivityPub is cool, but it's a social media thing. And decentralization is cool when needed, for instance social media. But it doesn't have to make sense for every use case.

For what's being proposed there's zero actual need for decentralization or ActivityPub.

[–] asdfasdfasdf@lemmy.world 1 points 1 hour ago* (last edited 1 hour ago)

Instances are stores (think Amazon or Etsy). Products are posts. Sellers are users.

Stores aren't protected from being defederated. You can still search Google or whatever, still visit the site and buy stuff. It just will not be a unified search, just like how anything else works with ActivityPub.

The good stores would be run by admins who don't have an incentive to defederate from others. Stores don't make money or take a cut from sellers anyway. The sellers aren't in charge of the instance, just like an Etsy seller can't do anything about the fact that they have competitors on Etsy.

The need for decentralization is that the store / Amazon / Etsy is broken up but the search and interactions, reviews, etc. are unified.

[–] 96VXb9ktTjFnRi@feddit.nl 3 points 4 hours ago* (last edited 4 hours ago) (1 children)

What about the online food ordering market. I reckon that might be an easier first step than consumer products. Here in the Netherlands JustEatTakeaway has a market share of around 90% and requires restaurants to give them a 14% provision. Restaurants don't have much of a choice, if they're not on there they miss out on a huge part of the market, it's like they don't exist. Why don't restaurants unite and develop a FOSS protocol that let's them federate, so the consumer has a central place to browse the food delivery market, but simultaneously makes the providers independant because they can run their own instance if they please. Have these types of ideas been pitched to branche organizations? Restaurants have a clear interest to develop this to free themselves from the platforms with a monopolistic venture-capital-driven strategy.

[–] haui_lemmy@lemmy.giftedmc.com 3 points 3 hours ago

I fully agree that this would be a valid application. The reason any company doesnt adopt such strategies is the cost of pioneering it. Most companies who spearhead such an idea want it to pay off -> proprietary. Also most people are specialized in their industry. Developing an app is not native to food industry for example.

[–] ChairmanMeow@programming.dev 10 points 5 hours ago (1 children)

I work in the IT department for a fairly large payment service provider. I can tell you now that you seem to be vastly underestimating both the financial aspect of this as well as several legal aspects.

  • Federation would almost certainly have to be opt-in rather than opt-out. I don't think you're going to pass KYC checks for any PSP if it's opt-out, the risk of someone (ever so briefly) selling illegal goods through your website is too great otherwise. Stripe would just shut down your account (if they even let you open it), PayPal probably won't let you open it at all.

  • Selling goods from other sites through your own, makes you liable for any returns, warranty claims etc... Simply "passing these on" isn't going to cut it. If the other site disagrees with the customer claim, you are on the hook for it, because it was sold through your website.

  • The financial logistics aspect here is really complex. If you're going to process payments on behalf of another site, you have to deal with reconciliation. After reconciliation you have to the send the money to the other shop, incurring additional (sometimes surprisingly sizeable) fees. And coming from someone who deals with (automated) reconciliation on a daily basis, every payment method does it differently and they all find extremely creative ways to mess up your systems. And that includes unannounced changes, mistakes, random unexplained fees, failure to deliver settlement files, etc...

  • How do you deal with the risk of scam instances? E.g. instance A tells instance B that a product was sold and the payment was processed. B sends it out, but it turns out the customer was the owner of A, and there was no payment at all. B just lost a product with very little chance of getting it back.

  • Then there's practical aspects. How do you deduplicate products in search? Or will you have dozens of listings for the exact same product?

The only remotely viable way I see this working is if only search is actually federated. Once you are on a product page, you can only pay using the payment page of the instance that has the product. You won't be able to pay for products of multiple instances at once, and you might lose some unified styling. But at least that approach has a chance of passing KYC and deals with all the legal issues regarding returns/warranties etc..., and it reduces the scam risk because you're in charge of your own payments. But at that point, you've only federated product search and nothing else, and then as a consumer you might as well just Google it instead.

I appreciate you have experience in running a business, but running a marketplace, especially a very complicated one, is really not like running a usual business.

[–] haui_lemmy@lemmy.giftedmc.com 1 points 3 hours ago

This is incredibly valuable advice! Thank you so much!

My current stance on federation is of course opt in and requires the main seller to trust the downstream vendors.

The main point is that this already happens for a large portion of thing you can buy. I sell computers and adjacent services, classical system integration if you will. Of course I have to buy the systems from vendors and resell them to my customers.

Many system integrators have shops where some of them rely on custom integration of vendor apis. Take minecraft server sites for example that have an automated integration with a hosting company's api (eg hetzner). you as a customer just order a server, their automation makes the order processing with hetzner and provisions the server for you.

Now make this over a non custom but standardized api, eg activity pub.

I might still be overlooking stuff but from a technical standpoint this should be doable. The legal aspect is interesting, although I think this could be done similar to already existing resellers.

Feel free to point out flaws obvious to you. I appreciate your feedback massively.

[–] jaggedrobotpubes@lemmy.world 6 points 7 hours ago (1 children)

I think the way to beat amazon is to specialize in one tiny area. Carve them up into such small slices that they cant fight back.

So like, instead of trying to do just their books business, do just horror books. Horror that mixes with all genres, every possible crossover, but always horror books.

Having a genuine specialty is what can take amazon down, bit by bit. Something genuinely cool, something genuinely fun. Another big-ass store is nothing special.

[–] haui_lemmy@lemmy.giftedmc.com 2 points 7 hours ago

You obviously didnt get the point. These stores already exist and they're not big.

I do get the specialization idea and I think its valid. i just dont see how to make that federated and why only for books as I'm not talking about a service, really. Its a network.

[–] buzz86us@lemmy.world 5 points 7 hours ago* (last edited 7 hours ago) (1 children)

I would love a federated Amazon that works directly with producers to sell everything at cost without a middleman or fees to the sellers.

[–] haui_lemmy@lemmy.giftedmc.com 2 points 7 hours ago (1 children)

There you go. Glad you like it.

[–] daniskarma@lemmy.dbzer0.com 3 points 4 hours ago (1 children)

Correct me if I'm wrong. But you examples are bot cutting off the middle man.

The person with the small computer store is still a middle man.

And being smaller usually means that their cut needs to be bigger to maintain themselves.

[–] haui_lemmy@lemmy.giftedmc.com 1 points 3 hours ago

I wont correct you since I'm not the authority. I think your point is valid.

In my idea, the shop you visit - lets call them computer store - will sell you a range of computers, some of their own assembly, with normal margin, like its done today. What changes is that they partner with another shop (or many) that sell adjacent products. That could be a desk for the computer, software or other products. Those products are manually federated, ie the partners have been vetted by computer store. If you buy the computer, the seller makes their typical margin. If you buy the desk, no matter if additionally or exclusively, they will only manage the order process and payment. The rest will be done over classical dropshipping. Meaning the original desk seller will handle everything after the sale has taken place. Same as amzon does with many of their products, same as aliexpress and ebay but better than ebay because the computer store owner keeps control of the vendors they partner with. They receive a small fee only which would not be enough on its own but they arguably dont have any work besides processing the order.

[–] rottingleaf@lemmy.world 4 points 8 hours ago* (last edited 8 hours ago) (1 children)

No, federated model is chosen over distributed model or centralized model to allow feuds, putting it simply.

That may work for a Reddit alternative, but doesn't work for markets. Helps moderation (some idea of it, I don't think that idea is good), but definitely hurts a single space to sell and buy stuff.

Which is why cryptobros and such types make either centralized or distributed systems.

So much for using computer networks for this.

Now about Amazon specifically - your post omits the whole warehouses and logistics part. Which is most of Amazon's core business.

Computer people today somehow started forgetting that real life is very hard and complex. When I was a kid (born 1996, so not old man), computers had a promise of making that real life easier, and from time to time delivered on it, but at some point bullshit like glossy buttons and Web 2.0 and social media became a thing in itself, and everyone started behaving as if it's done, we now can look down like olympic gods to those mortals messing around in dirt, and sometimes easily solve their problems. We can't.

Getting back to logistics - one has to design a system of shared warehouses, transportation, mailing and delivery tasks, tracking, reporting on outcomes of every event, and all that should be even more abuse-resilient than the processes inside actual Amazon. You'll have Byzantine problems in every interaction.

The "distributed king of all social media, solving once and for all the problem of centralized platforms" that I'm often dreaming about is realistic compared to that.

[–] haui_lemmy@lemmy.giftedmc.com 2 points 8 hours ago (2 children)

Your comment brings no ounce of new ideas or criticisms to the table, overlooks all the pros and cons already mentioned and assumes you know a lot more thane for example. I run businesses for 15 years, do ethical business since 10 yrs and am thinking from a position of experience.

The reason I dont present myself in a way that screams competence is because this is lemmy and we dont need this stuff. I like spitballing ideas and push new projects for the benefit of the people.

But feel free to suggest constructive things.

[–] ChairmanMeow@programming.dev 5 points 6 hours ago (1 children)

I feel like this is far too dismissive for a comment that was in my eyes fairly constructive. He correctly pointed out that one of Amazon's main selling points is their whole logistics division. A federated website doesn't have that. So either:

  • You somehow also start doing logistics, or
  • You provide a good reason why shops don't actually care about Amazon's logistics all that much, and how they could to it themselves instead.

Maybe you could actually address the core of his criticism instead of outright dismissing it.

[–] haui_lemmy@lemmy.giftedmc.com 1 points 2 hours ago

You're missing that these points have already been adressed in a lot of other comments and have been stated way more constructively.

Of course having a whole logistics setup in place will be far superior to only doing dropshipping. But this is a whole different (additional) project. It absolutely has it is place. What I'm dismissing is the claim that the idea is dependent on somehow cloning the arguably much more expensive and complex parts of amazons business.

Again, i do agree that amazon has a huge machinery in place. But I also wish to discuss things without being treated dismissively myself.

[–] rottingleaf@lemmy.world 1 points 4 hours ago (1 children)

Sorry if my tone will be less gentle than needed.

Your comment brings no ounce of new ideas or criticisms to the table,

I don't think so.

overlooks all the pros and cons already mentioned

It makes sense that others look at different parts of the problem than you do.

I run businesses for 15 years, do ethical business since 10 yrs and am thinking from a position of experience.

Most people have (or recently enough had and will have) a job, and most people know a person or two with 10-15 years of experience in management positions who think they are thinking from a position of experience.

Different professions and job responsibilities exist for a reason.

The reason I dont present myself in a way that screams competence is because this is lemmy and we dont need this stuff.

You did it here instead of continuing a pretty normal thread or leaving it be.

I like spitballing ideas and push new projects for the benefit of the people.

That is important, but almost everyone has been spitballing ideas and pushing new projects since they learned to speak.

But feel free to suggest constructive things.

Quoting myself:

Getting back to logistics - one has to design a system of shared warehouses, transportation, mailing and delivery tasks, tracking, reporting on outcomes of every event, and all that should be even more abuse-resilient than the processes inside actual Amazon. You’ll have Byzantine problems in every interaction.

"Shared" is the important part. Even without that one can fail logistics - see USSR, the biggest corporation to fail in history.

[–] haui_lemmy@lemmy.giftedmc.com 1 points 3 hours ago (1 children)

Since this was another round of no additional input, I'll repeat myself too:

People have already suggested that. But thanks for participating.

[–] rottingleaf@lemmy.world 1 points 3 hours ago (1 children)

Since this was another round of no additional input, I’ll repeat myself too:

I don't think so. I also can imagine you moved on to ethical business and suggesting ideas because you had personality conflicts where people actually do something.

[–] haui_lemmy@lemmy.giftedmc.com 1 points 3 hours ago

I'm very happy you reveal your actual intent by personally attacking me instead of taking the hint. Good bye.

[–] vxx@lemmy.world 2 points 8 hours ago (1 children)

I like the idea and it could work very well for smaller communities. In fact, theyre already doing something similar called "Werbering" (advertising ring) in germany. It takes the idea and elevates it into the digital space.

[–] haui_lemmy@lemmy.giftedmc.com 2 points 7 hours ago

Thats an interesting bit of information. Thanks! :)

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