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Orozco, Norma <br /> From: Nathaniel Greensides <mynci90@gmail.com> <br /> Sent: Tuesday,July 12, 2022 9:36 PM <br /> To: eComment; Downs, Kathryn <br /> Subject: Public comment agenda item 17 <br /> Dear City Council, <br /> tl;dr: continued reliance upon Amazon's business models of goods distribution may eventually result in <br /> catastrophe for local businesses and the local economy. <br /> While I applaud the city utilizing cost effective and efficient contracts awarded to third parties for necessary <br /> government operations, I remain weary of Amazon as a mega corporation and its monopolistic business <br /> practices. (I am not the only one either: https://www.yalelawjournal.org//pdf/e.710.Khan.805_zuvfyyeh.pdf) <br /> I myself was once a vendor who listed products for sale on Amazon's platform to make some extra money in <br /> college. Then their systems failed to allow me to create custom listings which fell outside of their databases' <br /> information leading to unhappy customers who were expecting products from me based on Amazon's faulty <br /> database system. <br /> Additionally, the fees and structure of demands placed upon third party vendors who sell goods on Amazon's <br /> platform often result in unreasonable expectations and terms for the workers who need to fulfill the orders and <br /> contracts with Amazon as a means of goods distribution. This sentiment and understanding comes from my <br /> short experience working with a Japanese collectible toys distributor based in Anaheim called Bluefin (AKA <br /> Bandai Namco Collectibles). While Bluefin held contracts to distribute toys with local independent retail hobby <br /> shops all around the country, those contracts were much smaller than the contracts which Amazon negotiates <br /> with distribution companies in North America. Thus, many local independent retailers found themselves with <br /> no stock for sale to end consumers while Amazon absorbed all stock for sale on their platform. This in turn put <br /> the independent distributors in a bind to continue to fulfill Amazon contracts while smaller independent retailers <br /> slowly go out of business and eventually the distributor becomes more and more just another Amazon <br /> distribution center OR in the case of Bluefin, acquired by a larger multinational toy company such as Bandai <br /> Namco to remain competitive against Amazon. <br /> I understand that the contract is necessary in the short term and has proven beneficial thus far. However I would <br /> advise a portion of the proposed $400,000 be re-apportioned to hiring and training a qualified Santa Ana <br /> resident to cut out Amazon as a middleman. The person in the role would research the local vendors which the <br /> Amazon business rep has positioned for procurement of goods and materials. The person would then reach out <br /> and establish communication and training to said local vendors to become listed on Santa Ana's bid portals to be <br /> able to make contracts directly with the City and ensure the long term viability as a Santa Ana owned and <br /> operated business ventures. The savings incurred by the local vendors in making direct contracts with the city <br /> may also allow for local vendors to in turn expand and hire other local residents. <br /> Sincerely, <br /> Nathaniel Greensides <br /> Ward 5 resident <br /> i <br />