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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.
Wasn't a federated Amazon just a mall, in a way?
A mall is a private real estate instrument built by speculators to extract rent from businesses and it's actually rather predatory. This is fundamentally not real estate and fundamentally does not exist to extract rent, so it's more like "what if you took a mall and removed all the mall-ness from it".
If malls were collectively owned by the stores that comprise them and pieces of the mall could appear and disappear at will of whoever's participating... Is it actually even still a mall really???
Good point!
The mall was still centralized and most shops didnt have their own place and a stall ij the mall but I can totally see where you're coming from.
It might be a good idea to keep this in mind if this ever becomes reality and we need marketing ideas. :)
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.
I used woocommerce in the past. Its not that complicated. Woocommerce is open source from what I read: https://www.forbes.com/advisor/business/software/woocommerce-review/ i would have to check the source but implementing federation would be quite trivial i guess.
Why bother federating:
You advertise for your partners, not competitors. This is done already but manually by reselling. This would just expedite the process. The only part that is not yet clear to me is if the shop advertises something from another shop and clearly says, only sale processing through website, not fulfillment, if that would also make it that the legal warranty is done by the downstream vendor. Processing returns also is trivial from a technical perspective. Its just the legal one that keeps me guessing atm.
Decentralized sales platforms would just suck to use, in general. The Amazon problem is likely something that can only be solved by the legislative processes of the countries it operates in.
Imagine Ebay but with even less scam prevention.
Instead of Amazon. Id do fediverse equivalent of Craigslist and Facebook marketplace. Which technically exists in. Europe it just needs to be imported to the US
As you said, it exists. You can just clone it from codeberg and run it. Here's an article about it https://wedistribute.org/2024/08/flohmarkt-federated-market/
I'm having a *someone should do it just not me" moment. It looks like each instance is for different European country. Wonder if it would be for individual States
I don't follow, sorry. In the meantime I put up an instance. Check out https://freebay.giftedmc.com/
The project is pretty small but I'm fairly confident it will grow.
I'll test it for some time and thing about pro's and cons of working with this project instead of forking or building something new.
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.
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.
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.
I would love a federated Amazon that works directly with producers to sell everything at cost without a middleman or fees to the sellers.
There you go. Glad you like it.
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.
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.
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.
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.
Thats an interesting bit of information. Thanks! :)