The real danger is in debasement—something we’ve seen with product over the past 40-50 years and it’s no different than Walmart putting pricing pressure on it’s suppliers. If suppliers can’t increase costs and they’ve maxed out economies of scale then they need to debase their product to Suppliers need to cut corners to generate additional profits.
This squeeze on suppliers is a big part of why Amazon has such a problem with counterfeit goods, IMO. If you start blindly optimizing on supplier prices, counterfeiters can often win those price competitions.
