Selling Lemons

frankchimero.com

207 points by gregwolanski 2 days ago


johnfn - a day ago

> I thought about this last week while shopping online for a sleep mask. Brands like MZOO, YFONG, WAOAW popped up, and these seemed less like companies and more like vowel smoke ejected from a factory flue hole, then slotted into a distribution platform

I find this ironic. I swear by MZOO eye masks. They are so much better than anything you can buy in a pharmacy. They are vastly more comfortable, and they do a significantly better job at blocking out light. I've recommended them to all my friends, and many of them now swear by them as well. And don’t just take my word on it - Consumer Reports also says they’re the top rated sleep mask brand.

There is a certain irony (or not?) to talking about how the good is indistinguishable from the bad, and then accidentally mentioning the best. The Internet did bring me a lot of bad knock-off brands, but it also brought me MZOO, so I'm not sure if I should be complaining.

james_marks - a day ago

The rise of graphic design tools and digital printing play an interesting role in this.

20 years ago, existing as a brand required an effort and resources threshold. Even to have a logo took some level of commitment and skill. Minimum production runs on trivial things like the box insert meant there were stakes to bringing a product to market.

With those barriers gone, we have more brands than ever, and they mean relatively little.

fsckboy - a day ago

just a quibble, a lemon market is not a stage of a market, it's a market with information asymmetry which affects prices which affects market participation.

the Amazon mixing of products from separately sourced vendor inventories or luxury goods with counterfeiting competitors, or buying jewelry from a jeweler creates lemon markets for those products.

used markets do have the nature of lemon markets, and once you discovered that you have been ripped off on a purchase, you have an incentive to unload what you bought, and you could call that a lifecycle stage of a product, but "descending into lemonhood" is not a progression of markets.

also, the term lemon refers to the slang "lemon cars", cars with defects, and has nothing to do with a market for lemons where people seek the sour taste.

jp57 - a day ago

... [W]hile shopping online for a sleep mask. Brands like MZOO, YFONG, WAOAW popped up, .... The long tail of generic brands on e-commerce platforms is a textbook lemons market: good products get drowned out by these alphabet soup products.

I've found the emergence of these anti-brands to be fascinating, if also annoying. They are not really brands at all. The purpose of a brand is to signal something about who made the product, but these brands deliberately signal nothing.

What's interesting, though, is that these brands typically sell things for which we, in the pre-internet days, would not really have cared much about the brand. If you were looking for a sleep mask, you would likely go to a department store or a store at the mall. That store would have at most one or two different brands of sleep mask to choose from. What would you, the shopper know about these brands? Probably nothing. It was the store's brand that you would trust. The store would do the curation, and if customers got a lot of lemons from the store, they would choose to shop somewhere else.

With Amazon's "everything store", this entire pattern has been distrupted. For a while, their ratings could be trusted, but they eventually eroded. Then you could trust "Amazon's Choice" for a while, but I've started seeing "Amazon's Choice" on brands like "MIEWWO" now. So what to do?

The answer is to go back to shopping at stores you can trust to curate what they sell, or for specialty products, buy direct from some known brand's website. (e.g. something like Leatherman tools or Spyderco knives)

Last summer I had to prep for an outdoors trip, and needed to buy a bunch of gear and clothing. Almost everything I bought I could have gotten from Amazon or a similar marketplace online, but instead I bought from REI and local sporting/camping shops, either buying online and picking up in store, or just going to the store and shopping, and it really felt worth it to get the quality I wanted.

ChrisMarshallNY - a day ago

Not just The Internet. All of tech, and likely, other industries, as well.

I was told that this was what happened to Etsy.

When it first came out, people with real skills, sold real, handmade goods, at fairly high prices.

Then, the mass-produced knockoffs flooded the site, priced way-lo.

The legit stuff couldn't keep up; in price or in scale.

I see this happening everywhere.

us-merul - a day ago

The difference between meta and outputs reminds me of Goodhart’s law: “When a measure becomes a target, it ceases to be a good measure.” Similar to the metricization of research and science, for example.

jamestimmins - a day ago

I actually have the Mzoo sleep mask he mentioned and I quite like it.

Wirecutter recommends it and Reddit seems to agree.

Doesn't negate the article, but just clarifying for anyone in the market who thinks it's a lemon.

alberth - a day ago

First, I really respect Frank. He’s an amazing designer and have enjoyed using what he’s made in the past (Abstract, etc).

I have a different take thought and it’s not so bleak, and believe a few different topics are conflated in the post.

- Everything in life trends towards the lowest common denominator. That’s not necessarily a bad thing, it just means companys optimize for mass appeal (e.g. they want Walmart volume, not low boutique sales).

- Information asymmetry is actually not as bad as the post would make you believe. 5-star rated system for seller & products (and buyer comments) exist preciously to prevent information asymmetry. This helps buyers make informed purchasing decisions. You see this from: Amazon, Yelp, Uber, Airbnb, etc.

What I think is getting conflated is:

- Launching a new physical good (not just software) has never been easier. In tech, we got accustomed to how easily it became to launch a 1-person SaaS over the last decade (i.e. “indie hacker” movement). The same is now happening with physical goods.

- Curation matters. Nordstrom has the legendary return policy where they will take back any good sold. This is in part able to be done because Nordstrom is hand selecting any good they sell. Which means they are vetting it coming from a reputable supplier and has a certain degree of quality. In an economy where it’s just one big open marketplace (which is directionally where we are going), customers lose the relationship they once had with a merchant who performed the trusted curation of product selection for them.

myflash13 - a day ago

People who want the Good Stuff in life acquire taste and expertise or rely on the opinion of trusted people who have taste and expertise. It's always been like this. Otherwise acquiring the Good Stuff is a matter of random chance.

AznHisoka - a day ago

>> The safest, smartest path is also the most mundane: keep the main thing the main thing. Outcomes matter, but output literally comes first. Outputs are the business to everyone outside it—what customers see, buy, and use.

I dont understand how this overcomes the problem. How do you then stand out as a candidate in a saturated lemon market of candidates for instance?

How you then stand out as an authoritiative website if the search results are lemon?

ruralfam - a day ago

I can relate. Buy a lot from Amazon, and play the "crazy-Chinese-brand-name" routlette a lot. Most are low value purchases which makes the risk not too bad. Most purchases have me saying, "Damn that's good quality (e.g. drill bit sets)." So the China brands do a pretty good job overall. Note: One needs to spend a good amount of time sorting thru reviews to avoid the obviously bad stuff.

So now I want to spend several hundred dollars on a magnetic-resistance stationary bike. This is a whole new level of exposure vs. my "small-dollar, small-risk" previous purchases. Main brands (Peleton etc.) are just way out of my price range. So I have spent several days now researching these products. Am confident I am going to make a good purchase... Why you say ??

I was looking at a very niche "vote your favorite mansion" competition on a football fan forum (chiefsplanet) thread. Some very expensive mansion had a photo of the exercise room, and there was my current contender for first choice. What a strange way to get positive feedback.

csallen - a day ago

Call me crazy, but it is possible to distinguish good from bad in most of these "lemon markets" the author lists.

When buying physical products, there are tons of high-quality review sites like Wirecutter, with journalists who spend months testing out products and reviewing them to find the best ones. Not to mention the reviews on sites like Amazon itself. And of course, just doing internet searches, researching the domain, learning what makes products good, seeing what others on various forums have liked. It takes some time, effort, learning, and taste to do all this searching and to weed out the fake reviews, of course, but I think many millions of people are capable of doing the above.

Social media is similar. It's not that hard to discern whether you're following a low-quality spam account vs an authentic high-quality person. And you can curate and build up your list over time, to have more signal and less noise. Will most people filter effectively? No. Again, it requires time, effort, learning, and taste. But still, it's possible.

Etc.

But I don't think it's accurate to say we're in a lemon market. We're in a taste market, and the reality is that most people just have exceptionally bad taste.

m463 - a day ago

I think there's one big "information asymmetry" I REALLY wish could get addressed.

basically - products spy on you, create a detailed dossier, and then sell or share your information.

And this information is basically unavailable, for many reasons.

So you cannot find out if a product is not only bad, but evil.

You only hear about stuff like this

1) tangentially

2) long after the fact

Like how the pentagon says DJI is basically the chinese military.

or how XYZ corp was compromised and leaked lots of people's data (and the people don't know who they are, where the data came from, and how long it has been happening)

BrenBarn - 8 hours ago

I think I agree with pretty much everything in this article. The only thing is that I think if you agree with all this, you kind of have to take the next step and say, ". . . and therefore we must explicitly disincentivize the types of behavior that lead to this situation."

> The safest, smartest path is also the most mundane: keep the main thing the main thing.

But the thing is that it's not, now. I think it's harder to succeed doing that than it is to succeed by diving into the cesspool of grift, deception and meta-gaming that the article laments. We're not going to fix that by exhorting the good people to stay out; they're the ones who don't want to jump in anyway. The problem is the bad people who will gleefully jump in and contribute to that disaster, and it won't be fixed without action directed at making that jump more painful (or at least less pleasurable) for them.

- a day ago
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peteforde - a day ago

For what it's worth, the last sleep mask you'll ever buy is Nitehood.

https://www.nitehood.com/

gmueckl - a day ago

Who here remembers those old 1000+ pages thick mail-order shopping catalogues? This was a (more or less) carefully curated collection of items because the catalogs could only have a finite number of pages. When Amazon started to accept virtually unvetted product listings from third parties, they opened the floodgates for lemons.

It's kind of a real world ACME equivalent now. I'm surprised that I don't make that duped coyote face more often after ordering from them.

The other part of the story is that a lot of formerly respectable quality brands now sell much poorer quality goods. I'm not sure whether this is adaptation to a lemon market, but it does reinforce the information asymmetry. Infindnlywlf thinking, "this used to be a good brand once, but can I still rely on them?"

Some of the bad incentives have always been there because they are fundamental to capitalism. But I feel that the Internet and global trade together have turbocharged a particularly nasty race to the bottom.

layer8 - a day ago

> Brands like MZOO, YFONG, WAOAW popped up, and these seemed less like companies and more like vowel smoke ejected from a factory flue hole, then slotted into a distribution platform.

Obligatory Ryan George video: https://youtu.be/nQpxAvjD_30?t=4

rusk - a day ago

There’s definitely always been vibes of this off the PC market. So hard to get one that’s “nice” y’know what I mean. There are some notable high end PC vendors but they typically sell direct. In the high street, it’s lemons all the way down. Even reputable brands have to get in on the action with a lemon line. Apple’s whole thing it seems, has always to stay away from being a lemon. The only time they came close, incidentally was in the 90s when they started licensing their product to other manufacturers. This is what solid branding does. Helps you not be perceived as a lemon.

j1elo - a day ago

> (and what differentiates it in my mind from enshittification

Missing a close paren here. My mental Lisp parser gave me a syntax error here and I panicked hahah :)

(truth be told I got stuck for an instant in there)

pembrook - a day ago

I think this is less of a market inefficiency and more a downside of “democratization” and the eternal September.

In many fields of human endeavor, there’s the passionate or early adopters who seek out the best, most innovative, high quality producers and pride themselves on that.

But even the most sophisticated/snobbish of connoisseurs doesn’t have time to be that way about more than a few things. Very few wine snobs spend the time to investigate the cost/quality ratio on their toilet paper in a similar way.

Most people don’t actually care that much about the thread count on their sheets and the production value on their TikTok clips.

They care more about spending time with their kids or, heck, even their community. Simply clicking buy on the algorithmic Chinese slop in the featured slot gets the job done well enough, most of the time.

I don’t see how digital algorithmic scarcity is any different than the battle to appear on scarce shelf-space when everything was still in the real world.

The fundamental issue in both cases is still scarcity of human attention. The market is pretty damn efficient at giving customers exactly what they want, and the hard truth is most people want “as cheap and low effort as possible.” I think the author just wishes other people were more passionate like him in the areas he cares about.

metalman - a day ago

the lemon is rotten

no lemonade

moralestapia - a day ago

[flagged]

smm11 - a day ago

Because the internet is all about buying stuff. Got it.

lifestyleguru - a day ago

I'm torn about online dating. It figures the real market value, the real league of possible partners, as we established that real life pick up is unwanted and creepy. Our value and league are not what we'd want and expect, no surprise.

Honestly tinder shows me profiles of all potential partners with comparable wealth, age, and status within my area which I recognize from closer and wider circle of acquaintances. Even short appearances or breakdowns the apparently have by installing and setting up the app for a day or two. Sometimes even have moments like "wow, this match would be a romantic comedy plot with reunion after a decade". Then... they just swipe me left and continue complaining that there's nothing there.