NASSAU, BAHAMAS — A Bahamian logistics operator says Amazon’s vast customer base could allow it to dominate up to 70 percent of consumer shipments to The Bahamas, potentially marginalizing local logistics providers who may find it difficult to compete on price and convenience, much like Walmart’s impact on small-town stores in the United States.
Ceri Howells, Chief Operations Officer of CLX Logistics Bahamas, commented on the matter in an article posted to LinkedIn, noting: “By aligning exclusively with DHL, Amazon has effectively directed this large volume to a single carrier, giving DHL a significant market advantage over other local logistics providers. This scenario is not just about a partnership with a single carrier—it’s about the potential concentration of market power.”
He added: “For smaller, independent carriers, competing against this kind of volume monopoly is extremely challenging. Even with the best service offerings, they may struggle to match the economies of scale that Amazon and DHL could leverage together. This imbalance could lead to reduced market diversity, putting local logistics providers at risk of marginalization.
“Such a scenario has precedent in other markets. In the United States, the arrival of Walmart in small towns often led to the rapid closure of local stores that couldn’t compete with Walmart’s pricing power, economies of scale, and extensive selection. A similar scenario could play out here, with local logistics companies finding it difficult to compete on price and convenience against well-established brands like DHL.”
Nick Caplin, Head of Communications for EU Emerging Markets and LATAM, confirmed to Eyewitness News: “International Free Delivery is available on eligible products shipped to The Bahamas (all major islands) as part of orders worth USD $49 or more. Not all items qualify for the Free Delivery promotion. Look for ‘FREE Delivery to Bahamas’ or ‘FREE Delivery to Bahamas when you spend over $49.00 on eligible items’ throughout your shopping journey. Once your cart contains eligible items totaling over $49, you’ll see the Free Delivery promotion option at checkout.” Caplin added, “This promotion is part of our ongoing effort to provide greater value to our customers worldwide, and no end date has been announced.”
Howells further noted that Amazon’s entry into a local market often has profound effects on businesses across the spectrum—from small retailers to larger, established companies. He highlighted that local Bahamian retailers may struggle to compete against Amazon’s vast selection and competitive pricing. Just as Walmart’s expansion in smaller communities led to the decline of local businesses, so too could Amazon’s expanded reach result in store closures, job losses, and a reduction in local entrepreneurship.
Howells also pointed out that even established Bahamian companies that have historically served large customer bases may feel pressure to adapt or streamline operations to keep up, possibly resulting in cost-cutting measures or shifts toward e-commerce. “Unfortunately, this adaptation is often reactive rather than proactive, and even larger companies may find it difficult to sustain operations in the face of Amazon’s scale and efficiency,” said Howells.
While he acknowledged the immediate benefits for consumers, such as free or reduced shipping costs on Amazon and access to a vast catalog of products at potentially lower prices, Howells stressed the importance of considering the long-term impact of relying on a single e-commerce giant. If local businesses are unable to compete, consumers may eventually lose out on variety and unique local products, leaving them dependent on Amazon for an increasing share of their purchases. This, he argued, could homogenize the market, eroding the character and diversity that defines Bahamian retail.
He also pointed out that the entry of powerful corporations like Walmart and Amazon into smaller markets has often led to drastic economic shifts, including job loss, reduced wages, and a significant decrease in the number of small businesses that can survive in these newly monopolized markets.
One potential upside, Howells noted, would be if Amazon allowed Bahamian businesses to sell directly on its platform, providing local products with global exposure. “This arrangement could foster growth and economic diversification, giving Bahamian businesses access to millions of new customers. Small producers of Bahamian goods—such as crafts, food products, and unique cultural items—could reach a wider audience, potentially turning them into major industry players. Without this opportunity, however, the Bahamian market risks becoming merely a consumer base for Amazon rather than an active participant. Such a scenario would ultimately favor Amazon while diminishing the potential for Bahamian businesses to thrive in the global digital economy,” Howells argued.
He stressed that a multifaceted approach is essential to protecting the local economy and ensuring fair competition. Regulatory frameworks that encourage fair competition and prevent monopolistic practices can help maintain balance, he noted. He added that in some countries, governments have implemented policies that prevent large corporations from dominating logistics or retail markets, allowing local businesses a fair chance to compete.
He also noted that local logistics providers could establish alliances to strengthen their collective bargaining power, creating a viable alternative to global carriers.
“While Amazon’s free shipping initiative offers immediate benefits to consumers, the potential long-term impacts on The Bahamas’ economic landscape are significant. Healthy competition benefits everyone, and by fostering an environment that supports consumer access and local enterprises’ growth, we can work toward a balanced and prosperous future for the Bahamian economy.
Amazon’s integration with the Bahamian market should ideally be inclusive, offering local businesses a pathway to growth rather than simply positioning them as consumers. Through collaborative efforts, smart policy, and community-driven business practices, we can harness the benefits of global commerce while preserving the strength and diversity of our local economy,” Howells concluded.
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