I have mixed feeling about this. Although Amazon is one of my favorite companies with great customer service, I am asking myself whether the day will come where they'll eat up all the competition, make the cost of entry to any domain prohibitive (by negotiating great distribution deals for themselves -- deals that no one else can strike), and then raising the prices. Just to be clear: if Amazon can buy a pencil at 1c due to bulk orders, and everyone else can only get it at 3c (due to smaller volumes of sales), Amazon could sell it for 3c, make profit, and still not allow anyone else into the market.
As a consumer, what do I care, right? I'm always getting the lowest price. But as an entrepreneur and someone who wants to see things get better, it's an issue if no one else can "disrupt" the market in a financially responsible way ( <-- and I'm specifically phrasing it this way because I think it's in mode these days to get a lot of VC money to "scale," and worry about profit later. I find it hard to believe that with just VC money anyone could "scale" to Amazon's dimensions).