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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[–] [email protected] 14 points 6 days ago (2 children)

Wasn't a federated Amazon just a mall, in a way?

[–] [email protected] 4 points 6 days ago

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???

[–] [email protected] 3 points 6 days ago

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. :)

[–] [email protected] 9 points 6 days ago* (last edited 6 days ago) (1 children)

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.

[–] [email protected] 0 points 6 days ago (1 children)

I agree on the need for legilature. I strongly disagree on the scam. You dont have massive csam on peertube either because it has manual federation. Everyone who runs a business knows that its much more important to not get sued than to sell stuff. Big difference between small businesses and large ones btw.

[–] [email protected] 1 points 5 days ago

You either only federate with a select few instances who vett each seller carefullly or you won't be able to keep track of reputation for each market user.

This isnt a mom and pop shop, its the internet. People won't give af about reputation they'll just keep making new accounts.

[–] [email protected] 7 points 6 days ago (1 children)

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

[–] [email protected] 4 points 6 days ago (1 children)

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/

[–] [email protected] 1 points 5 days ago (1 children)

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

[–] [email protected] 1 points 5 days ago

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.

[–] [email protected] 88 points 1 week ago (6 children)

I know that Federation is exciting, but all these ideas for federated services are really missing the reason why the Fediverse's current bits are successful - because they have low moral hazard.

When you get into economics and meatspace relationships, moral hazard skyrockets.

[–] [email protected] 14 points 1 week ago (8 children)

Accepting payments and creating "contracts" over the Fediverse is no bueno at the current time. I think it would require some kind of 3rd party, almost PayPal-esque (PayPal has its own controversy) service that would create the obligation and associated penalties that come with an online transaction. Could be the instance itself but as you said that's a risk most instance owners wouldn't take.

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[–] [email protected] 51 points 1 week ago (19 children)

you are not proposing a federated amazon, this is just federated ads and/or reviews.

how to process payments? how to ship goods? how to handle refunds? how to handle contestations?

please you can't just make anything federated. this protocol is built for social media and struggles to take over that sphere, we should focus on one thing rather than throwing random stuff at the wall hoping it sticks (cough federated tik tok cough)

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[–] [email protected] 42 points 1 week ago (5 children)

amazons true strength is ultimately in their logistics. Amazon itself isn’t a bad idea in theory but the execution is poor because of cutthroat capitalism exploiting workers and privatization. Ultimately the idea of sellers being able to ship their goods to communal warehouses for fulfillment should be a service that is nationalized. The marketplace can be federated, sure

[–] [email protected] 16 points 1 week ago* (last edited 1 week ago)

Another point here, Amazon has really thin profit margins on their core business (not counting AWS, etc. Just the online shopping). If it weren't absolutely gargantuan, it would fail. It's only profitable because of the logistical efficiency it has achieved, exploitation (of workers, cheap goods from China, etc.), and absolutely massive economies of scale. Similar to Walmart.

Recommended reading: People's Republic of Walmart. All for nationalizing - would be better for everyone.

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[–] [email protected] 23 points 1 week 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.

[–] [email protected] 21 points 1 week ago* (last edited 1 week ago) (7 children)

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.

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[–] cyborganism 19 points 1 week ago (4 children)

It's much more than that. Amazon's strength is also in its proximity warehouses and contacts with delivery companies.

Otherwise you just have a federated Ebay.

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[–] [email protected] 18 points 1 week ago (3 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.

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[–] [email protected] 15 points 1 week ago

Ideas are cheap. This is the third post like this I've seen in two weeks. Build it.

[–] [email protected] 14 points 1 week ago (10 children)

This is surprisingly one of the few actual useful uses of blockchain. Business tried to shove it in everywhere and it didn't make sense because blockchain is a way to audit federated separate instances - which businesses are not. They're a single monolithic structure, and they don't need the trust - they already have it. They're themselves, they just have to trust their own internal teams.

We, on the otherhand, are the perfect use for it. A way to say X person paid Y person for this product on this day at this time, X person now has the authority to rate Y person for how they did. Immutable, impossible to fake.

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[–] [email protected] 12 points 1 week ago (5 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.

[–] [email protected] 1 points 6 days ago (2 children)

Reading the post, I found what I really want right now: a federated review platform. Too many times I want to look for a product, and has to look into a reddit thread to see a recommendation. There should be one, right? Where is it?

[–] [email protected] 2 points 5 days ago* (last edited 5 days ago) (1 children)

If it involves money, it has the incentive to game the system. So each instance would be dealing with multiple attempts from actors adding fake reviews, sabotaging competitors, endless spam etc. If it can be easily automated, the service would be 24/7 filled with AI spam and drive away all users, defeating the purpose entirely.

The only trustworthy reviews are from people who actually bought the product in the website, because then it has a negative incentive to spend that much money for one fake review.

[–] [email protected] 1 points 4 days ago

Argh, that connects it to the shopping platform. I wish there is a way around amazon..

[–] [email protected] 3 points 6 days ago (1 children)

Reading the post, I found what I really want right now: a federated review platform.

[email protected] is a general review site. It currently covers media but, if you can get the data in (SKUs?) I can't see a reason it couldn't cover other products.

[–] [email protected] 1 points 6 days ago (1 children)

Thanks a lot! Bummer that it is primarily for media. I wish it had more publicity/popularity, is there any way I can help?

[–] [email protected] 2 points 6 days ago

It's not a bunker per se, it is just that, if you are a review platform, the easiest initial targets would be Goodreads, IMDb, etc. Other types of stuff to review may take a little longer. However, if you can get access to a source of unique IDs, it may be possible to import the information. As it is written in Python there will be knowledgeable folks around who can better advise on this. I'd suggest post about it here: [email protected]. See what other people think about it.

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