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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.
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.
Accepting payments isn't some kind of wild adventure that will inevitably doom your operation. People do it all the time, you can set up a Stripe account in a few minutes. You could, if you wanted (and you would probably want to go this route at least initially), require people to have a Stripe account or something and get paid directly from the buyer without you being involved. And then just charge a flat fee to the merchants or something, if you wanted to make the whole thing sustainable.
Stripe is well-equipped to deal with issues of taxes, fraud, refunds, and so on for micro-level businesses. Once you get into accepting payments and re-disbursing them to people, you've opened up a whole can of worms which probably means you should be spending a couple thousand dollars on lawyers and accountants to make sure it's all on the up-and-up, but even then, it's not unsolvable. It's kind of a pain in the ass, that's all. Jim Bob's Towing with his 2 pillhead employees manages to do it every day. It's how Jim Bob financed his boat. It's fine.
Exactly, you probably want a 3rd party to handle the money exchange part. Doesn't mean a Fedi app can't facilitate everything else.
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)
how to ship goods?
Part of their point was that Amazon doesn't handle shipping for a lot of the things they sell. If you want to, they can store everything within their massively-optimized operation and ship it for you for a small-enough-to-be-compelling fee, but you don't have to. You can also just list your stuff there and ship it to customers when they order it.
how to process payments?
This is trivial. The modern financial internet makes it extremely easy.
how to handle refunds? how to handle contestations?
This is a fair point, probably the biggest issue that could be a stumbling block. One fair counterpoint is that Amazon's handling of these situations is often pure uncaring dogshit, so if you're doing a bad job at it, you're still no different than Amazon (and potentially better than, since it is hard to see how someone could be any worse.)
It's not totally simple, and you have to do some real actual work to solve it, but it's also not like going to the moon. It's solvable.
Considering your answer to payments solution was "This is trivial.' it sounds like a) You've never run a business and b) you're more interested in fantasizing than a realistic conversation.
Pretty much what they're doing all over this thread.
Like some people can only see the glass half full. Few have the guys to look at both the fullness and the emptyness equally.
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
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.
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.
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.
I order stuff from ebay. Got a phone on the way from china right now. Ebay work-alike might not be a bad place to start.
Exactly. The idea is to not make a perfect copy but a viable alternative without the constant breaks in design and trust when scouring the web for items. All those funny labels on websites for example like trustedshops are just for this. If one could make a web of trust, that would eliminate fakes and take power from for profit companies who make these labels and control trust.
Amazon has a lot of different aspects, same as facebook and xitter. I aim to think of alternatives, not perfect copies. My only hard target is that it is free from single entity control. Thats why not ebay or one of the others. Flohmarkt is kind of promising but i'll check it out deeper and host an instance. That way I can judge its potential.
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.
Ideas are cheap. This is the third post like this I've seen in two weeks. Build it.
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.
I'm definitely intrigued. I have HUGE prejudices when it comes to blockchain, one being climate impact. The other being privacy of all things. But I can see it as an option.
Not crypto, blockchain. When done correctly and you don't have every user trying to calculate the next hash for some pennies it works pretty well. Computing the hash when an action happens like a purchase is fairly trivial compared to mining.
Crypto started the concept of the blockchain, at the end though it's just a distributed immutable audit log. The hash is required, but if done correctly, it's trivial.
How do you handle returns, defective merchandise, warranties? If I buy something from you and something goes wrong with it, I'm not going to like being fobbed off with "hey, go talk to Tina". If they return-ship something to you instead of Tina, who pays to ship it back to Tina?
I really like the idea of a grassroots Amazon competitor. That said,
You need to have a high level of trust. A federated network of shady scams that just take your money and send you nothing half the time is not going to fly. Is there a vetting process, who controls that process, how's all that work. If its 'good seller' reviews, how are those stats protected from manipulation.
You need to have extreme ease of use. UI barriers that seem trivial to developers can sink a platform.
If there are problems solvable by centralization, maybe that could be done as a cooperative organization which devs and vendors can join and run democratically.
Another issue might be, how do you deal with people selling illegal items/services? How do you avoid "Silk Road" style liability? Would there be a blacklist that someone running an instance could use so they don't have to vet everyone they are federated with?
I don't see why we can't just buy directly from shops. Maybe an aggregator of links for products, so there is an rss-like feed of products, prices etc?
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.
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.
I would love a federated Amazon that works directly with producers to sell everything at cost without a middleman or fees to the sellers.
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.
The problem they (should/did) solve was scamming, and payments. So you'd need to have some banking system with locked money, disputes etc. IMO that is the complicated part, the rest is just more or less a searchable database.