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Can we please make a viable (federated!) amazon alternative? I have an idea!

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.

203 comments
  • 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.

  • 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.

    • 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.

      • I think the biggest issue is that if you already need to separate payments, returns, shipping, etc... you're left with a shop that also advertises products for other shops, possibly competitors. Then the question becomes... why bother federating at all?

        I think it'd be better to set up a FOSS shopping platform, eg something that competes with WooCommerce or the likes. That's significantly easier from a financial and legal perspective, and I think it's an easier sell to actual merchants (why pay a license for that shit, use this one for freeee). Then once you have that running, you could think about optional federation as an addition to an already well-functioning platform.

  • 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.

    • 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.

      • 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.

      • 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.

  • The best idea I can come up with is a federated marketplace. Each vendor has their own instance. Buyers can browse the marketplace and have a unified checkout experience. Vendors would have unified product posts so whichever vendor has the best price or fastest shipping (user preference) would get the sale. USPS for example has shipping zones which determine the price for shipping depending on distance.

    The best example I can come up with is rockauto. They are a central marketplace of different auto parts suppliers. You can find parts that are in the same location in order to combine shipping.

    If you put a part in your cart it will then show parts that are in the same warehouse.

    • Thats pretty straightfoward. I like it. Combined shipping can make sense. Thanks for participating.

  • Closest we've got right now is Flohmarkt, right? If they haven't already been working on some kinda trust system, they're probably taking code contributions. I saw somewhere else somebody suggested Loops integration for it, so they could have something like the tiktok shop. I mean capitalism is garbage, but unfortunately we do currently gotta buy stuff occasionally, and it would be nice if that experience sucked less.

    • Flohmarkt is nice if a little small atm but of course it is very new. I'll check if it would work to implement their api in a normal website/shop. because my point also is to make people independent from each other so that no single entity can control them. in this case I mean if flohmarkt got "outlawed" for example because lobbyists and such, websites would prevail, i hope.

      Thanks for participating.

      • Flohmarkt is nice if a little small atm but of course it is very new.

        Philosophically, the classified ad model (a bit like Etsy or eBay without auctions, where you are just an introduction service) seems more in keeping with the Fediverse and has a lot less hassles than trying to replicate Amazon with all it's storage and shipping.

        I’ll check if it would work to implement their api in a normal website/shop.

        What I'd like to see is more seamless integration of !flohmarkt@lemmy.ca into other Fediverse services.

        So someone has a blog for their writing on WordPress or Ghost but can run a sidebar or footer with links to Flohmarkt where people can buy a signed copy or special edition directly. Or you have it working with !neodb@lemmy.zip where users can read a review of a film and click through to see if anyone has a copy of the Blu-ray on Flohmarkt.

        Equally, !friendica@lemmy.ca is a kind of Facebook replacement and Flohmarkt could slot in there as a Marketplace replacement.

        In general we probably need more plug-ins in Fediverse services to help integrate things more tightly and Flohmarkt seems the kind of thing that would work well when slotted into a lot of other existing services.

        if flohmarkt got “outlawed” for example because lobbyists and such

        That would be very difficult to do with a decentralised service.

      • We coiod think of an integration with all main ecommerce platforms like:

        WooCommerce X Cart PrestaShop OpenCart osCommerce Joomla Zen Cart VirtueMart (Joomla) Drupal Commerce (Drupal) KonaKart PimCore

        https://www.ecommerceceo.com/open-source-ecommerce/

  • Could this be an app realized based on the mycelial web - amazon uses huge AI models to predict their customer's behaviour and do the logistics ... (not sure myself, but it probably won't work solely on ActivityPub)

    • The goal is not to ensnare the user but to free them. AI is absolutely not part of this idea. I havent read of the mycelial web yet though. Is it a thing or just an AI pipedream?

      • I made a first prototype here: https://github.com/bluebbberry/MyceliumWebServer. Its recommends songs to the users. You can see it here: https://techhub.social/@myceliumweb and try it out by posting to #babyfungus on Mastodon.

        You can do AI in an ethical way by making it more decentralized. The idea behind the mycelial web is to realize it based on volunteer computing, meaning that everybody can contribute computing power. And then I can say, for example: use my models, which was trained with all these other models, on this Amazon alternative to recommend me stuff. And the AI model was trained on my PC and runs on my PC (just wasn't trained solely with my computing power or my data alone).

  • I think there's some misunderstanding here. Amazon is a massive logistics system. The retail storefront is a tiny part of what Amazon is today.

    AWS exists because Amazon needed to solve an internal data handling problem in order to solve their logistics problems so that they could scale up. After building that system, they started selling it as a product to other businesses. The point being, Amazon's real success is based on providing business-to-business services. The retail website is the tiny public-facing bit, but it depends on the rest of the organization structure in order to operate properly.

    What you're proposing is more like an eBay alternative, where the system is basically just the storefront, and the sellers listing products are responsible for their own logistics. eBay still provides dispute resolution for buyers though, and that's hard to achieve without some centralized control.

    There's also the legal problems. At some point someone will use such a system as a silk road - probably sooner rather than later. Whoever is administrating and hosting it will be liable for criminal activity in the countries where the crime occurs. It will not end well.

    • Thats entirely possible. Thanks for pointing it out.

      But the rest about amazon is (interesting?) noise in my opinion. The thing keeping people locked in amazon is amazon, nothing else. Sellers need to sell there to survive and customers cant find alternatives, especially not for a competitive price.

      • I don't see how you think its noise. Many items from amazon come from an amazone warehouse and delivered by amazon. they don't exclusively do it this way but this is how they have the same day and few day shipping. I remember when amazon went from mostly being a book site to selling everything and people were gaga about 2 day shipping and when same day shipping came to some metros it was talked about a lot. I think the main thing is the other guy mentioned logistics and aws but forgot to mention the warehouse and shipping part of the logistics.

      • Sellers need to sell there to survive

        Amazon is a service provider. Sellers sell there because Amazon provides product advertising (every product page is essentially an ad), order processing, payment processing, warehousing, order fulfillment (via the warehouse staff), shipping, dispute resolution, return processing (which is its own logistics nightmare), and even resale of returned/refurbished products in some cases, and all of it is coordinated through their data systems.

        It is extremely convenient to sell a product on Amazon because they handle all of the customer-facing parts of selling, all you have to do is describe what you're selling, and arrange for Amazon to get the product somehow. It's the convenience that keeps sellers on their platform. It's the convenience that makes it worth the cost of doing business with Amazon.

        Now yes, each individual service could be replaced, but splitting them out is going to cause coordination problems. It's going to slow down the order fulfillment, and it's basically shunting the operation cost (both time and money) back onto the seller. That's going to mean fewer sellers interested in using the alternative, because now they have to do for themselves what they could simply pay Amazon a percentage of their sale price to do. And because this alternative is slower and can't provide the same kind of return guarantees that Amazon can, fewer customers are going to want to use it.

        The thing keeping people locked in amazon is amazon, nothing else.

        So yes, you're right, but I don't think you're giving enough weight to what Amazon is as an organization. Amazon is a lot more than just the retail website. Having all of those services under one roof makes the operating costs lower, which is a big part of why the prices are so competitive. If the seller has to take on those costs then they have to raise the price of their products.

  • Or you can just buy from other online retailers.

    • except you cant. not in most real life situations. I personally made it a habbit to not shop at amazon and the time and money I "waste" for shopping elsewhere is insane. If you come with "you're just bad at searching then" I will block you without comment.

      • It is hard to shop at other places. I just always give other places a chance to win my business. It keeps some money from Amazon.

  • So in simple terms, you propose to build a mom-and-pop shop and have it act like a global player like Amazon?

    Congrats, it does not happen very often I sit in a chair and stare at the screen in disbelief!

    • Whatever your idea of a mom and pop shop and acting like a global player is, I'm not thinking of anything like this. As I mentioned. This already exists. The idea is to automate and streamline some parts, basically.

  • @hauilemmy I had a mostly similar idea a few weeks ago but I'm a mess ( sleep issues ) so no coding for me. 😂
    But yes, as I mentioned somewhere extending activitypub could be a start.

    • You dont need to code. Help can have many forms. Ideas, counsel, testing, building, planning, etc. Feel free to dm me if you're interested in building something. The most promising start so far was flohmarkt. It already kind of does something remotely like this but its very young. I'll check it out and report back.

      • @hauilemmy Flomarket is more like a separate shops, you need a protocol, and gui's that are easy to embed via EU made web frameworks like drupal. ( React to be avoided as it's from meta ) That way you see the shop on the individual site but also can create aggregators that look like ebay or ammazon but are federated.

  • I think the closest you can come is open source an entire business, from business plans, architecture, systems, payment processing, etc.

  • You are completely misunderstanding what Amazon actually does, and why it's successful, despite being a shitty company. It's first and foremost a logistics company. People can order "stuff" in many places, but if they order it on Amazon, they'll get it by tomorrow if they order it before midnight. They got warehouse everywhere. They do (some) of their own final deliveries for anyone close to those, use the big logistics players for the rest (ups, DHL, ...) while having massive volume and the power to dictate price that comes with that. The number of workers in the warehouses is actually minuscule for their size, it's all automated. Huge up front cost, very low cost once it's actually running.

    Consumers go there because they can get literally anything. Again: warehouses. It's also a market place but that only works (these days) because it's THE place the people go. The reviews are also a massive point, and would be inherently untrustworthy in a federated version.

    How would you ever get anyone to go to your federated version for shopping that sells like "some" things? Even if you manage to combine all those shops, you'd need a way to agree on what an item is called (or how to assign id numbers) so the same item from multiple sellers is grouped in the same offer, and many similar small things you take for granted it didn't even ever see/notice on Amazon.

203 comments