[ad_1]
Conor right here: A number of current items from Jeff Bezos’ Washington Put up (“Why you could not need decrease costs as a lot as you assume you do” and “Really, right this moment’s meals costs are a discount”) make for good accomplice items to the one under.
And right here’s a extra detailed thread from Stacy Mitchell than the one featured within the following article that actually highlights how this additionally decimates American companies. It’s all price a learn—as is the Institute for Native Self-Reliance report— however listed below are a couple of key factors:
9. These impartial suppliers usually outperform Amazon: In a value comparability of 628 regularly bought faculty objects, an impartial workplace provide vendor beat Amazon on 68% of them. And, in contrast to Amazon, these suppliers present constant next-day supply & excessive degree service. pic.twitter.com/wge8WTBuss
— Stacy Mitchell (@stacyfmitchell) December 4, 2025
12. The fact will be seen within the information: In Berkeley County, WV, the colleges spent $1.3 million with Amazon — and solely $142 went to in-state sellers. The overwhelming majority of the district’s spending went to Amazon itself or to abroad distributors. pic.twitter.com/teioIXb4bF
— Stacy Mitchell (@stacyfmitchell) December 4, 2025
By Jake Johnson, a senior editor and workers author for Widespread Desires. Initially revealed at Widespread Desires.
An in depth investigation launched Thursday reveals that the e-commerce behemoth Amazon is utilizing its market dominance and political affect to achieve a foothold in native governments’ buying methods, locking faculty districts into contracts that allow the company drive up costs for pens, sticky notes, and different primary provides.
The brand new report by the Institute for Native Self-Reliance (ILSR), titled Turning Public Cash Into Amazon’s Earnings: The Hidden Value of Ceding Authorities Procurement to a Monopoly Gatekeeper, is predicated on buying data from practically 130 cities representing greater than 50 million People.
ILSR discovered that “cities, counties, and faculty districts spent $2.2 billion with Amazon in 2023—a virtually fourfold improve since 2016.”
“Via its Amazon Enterprise platform, the corporate has maneuvered to change into the default supply for workplace merchandise, classroom supplies, cleansing provides, and different routine items,” the report states. “Immediately, it’s embedded in most native governments, making inroads into state businesses, and dominating a brand new program designed to reshape how federal businesses purchase industrial merchandise.”
In contrast to the mounted pricing that’s typical for presidency contracts, the agreements that Amazon has secured with native governments throughout the US entail “algorithm-driven pricing” to “covertly increase costs and inflate prices for governments.”
“The result’s dramatic value variation: One metropolis purchased a 12-pack of Sharpie markers for $8.99, whereas a close-by faculty district paid $28.63 for the an identical pack that very same day,” ILSR mentioned. “Our information comprise 1000’s of comparable examples, with some businesses paying double and even triple what others paid for a similar objects.”
1. Exhausting to imagine, however Amazon has persuaded colleges and cities throughout the nation to desert aggressive bidding and glued value contracts. As an alternative, they’re signing contracts with Amazon that specify dynamic pricing. The end result: Paying $37 for 12 pens or $74 for 36 markers. pic.twitter.com/afIIkPucZL
— Stacy Mitchell (@stacyfmitchell) December 5, 2025
General, ILSR discovered that college districts certain to Amazon contracts spend twice as a lot per scholar as faculty districts with out an settlement with the $2.5 trillion firm.
“Public officers must be deeply involved by what we discovered,” Stacy Mitchell, co-executive director of ILSR, mentioned in a press release. “Amazon is reshaping public procurement in ways in which expose taxpayer {dollars} to waste and danger. It has persuaded cities and colleges to desert safeguards meant to make sure truthful costs and accountability—whereas driving out impartial suppliers, eroding competitors, and placing Amazon able to dictate phrases.”
Having gained sweeping entry to native authorities buying processes, Amazon is more and more inserting itself into state and federal methods. ILSR famous that “Amazon dominates the Normal Providers Administration’s Industrial Platforms Program, a brand new system for businesses to make purchases under $15,000 that don’t require aggressive bids.”
“Through the first two years of this system’s pilot part,” the group discovered, “Amazon captured 96% of gross sales.”
ILSR emphasised that Amazon’s dominance is under no circumstances inevitable and might, with concerted motion, be rolled again.
“A handful of cities and counties have acknowledged the dangers of counting on Amazon and brought steps to revive transparency and maintain public {dollars} native,” the report observes. “Tempe, Arizona rejected an Amazon group-purchasing contract after listening to issues from an area enterprise proprietor. Between 2017 and 2023, town minimize its Amazon spending by 84% whereas rising purchases from native suppliers. Phoenix likewise prioritizes native bids and has spent virtually nothing with Amazon during the last decade.”
Kennedy Smith, co-author of the report, mentioned that “when native officers put actual safeguards in place and prioritize native suppliers, they get monetary savings, strengthen their economies, and restore public management over public {dollars}.”
To maintain their procurement system freed from the sorts of techniques Amazon makes use of to line its pockets with taxpayer cash, ILSR urged state and native governments to ban so-called “dynamic pricing” in buying contracts and to prioritize shopping for from native companies.
“By reclaiming management of public procurement, governments can safeguard {dollars}, strengthen native companies, and be sure that the products that maintain our colleges and public companies are provided via methods which are clear, aggressive, and democratic,” the group mentioned.
[ad_2]
