What to do about it? One thing might be to not invest in any company that is dependent on a retail sales channel that doesn't have a specific plan to avoid getting Amazoned this way. Amazon's basically found a great way to free ride on other firms product and market development -- which is fine, up until the reduced expected return from those investments dry up capital to invest in those areas for products that might be exposed to Amazon's tactics.

Oh, you mean what for existing firms with business models that are threatened...