Internet Scale Is A Huge Competitive Edge

Photo by Christian Wiediger on Unsplash

I reread the following article by Gavin Baker regularly. It’s a fantastic guide to the competitive structure of the e-commerce industry. Our first instinct is to think that by granting lower entry barriers, the Internet makes it easier for firms to compete. But instead, because of the way that brand and scale impact ad quality and lower CAC (customer acquisition cost), it turns out that economies of scale are even…