PARIS, FRANCE - SEP 28, 2018- Directly above view of New Amazon Cardboard box against yellow ... [+]
Another fire-fighting week but for both Amazon's this week. The big story came on Friday when The Wall Street Journal decided to push out its rather damning article on how much of Amazon's fiefdom is fake products, mislabelled items and unsafe versions of products. The well-researched article shows over 4,000 items on the site were deemed unsafe by federal entities. Amazon quickly removed a lot of the products, but the damage has been done to its reputation. While Amazon is shown to take the matter seriously, the article won't belay any fears in Congress (and other groups putting pressure on government bodies around the world) who are looking to curtail Amazon (and co's) grip on society. Amazon has a responsibility in this area, a responsibility that will cost it millions if not billions to fix. Trust is the one thing Amazon can't afford to lose.
The Journal identified at least 157 items for sale that Amazon had said it banned, including sleeping mats the Food and Drug Administration warns can suffocate infants. The Journal commissioned tests of 10 children's products it bought on Amazon, many promoted as "Amazon's Choice." Four failed tests based on federal safety standards, according to the testing company, including one with lead levels that exceeded federal limits. Of the 4,152 products the Journal identified, 46% were listed as shipping from Amazon warehouses. After the Journal brought the listings to Amazon's attention, 57% of the 4,152 listings had their wording altered or were taken down. Amazon said that it reviewed and addressed the listings the Journal provided and that company policies require all products to comply with laws and regulations.
Amazon also came under fire this week for increasing use of SmartPac, the company's plastic delivery pouches. While the pouches are recyclable, many areas are not equipped for them and most make it into landfill. While Amazon isn't in charge of how places recycle, the company could have made better decisions on the week the actual Amazon was burning. The Guardian was given nice holding statement for Amazon lacking any culpability whatsoever.
Amazon told the Guardian: “Our mission is to deliver the very best customer experience. We work with manufacturers worldwide to continuously improve packaging design and introduce new, sustainable packaging that delights customers, eliminates waste, and ensures products arrive intact and undamaged for our customers.” It also said it listened to its customer feedback.
The other Amazon fire was with its solar panels when Tesla units spontaneous combusted in an Amazon warehouse. News sent Tesla stock tumbling as only some days before, Walmart had reported similar issues. Amazon has said it will not be buying more solar panels from Tesla. Tesla could be on the hook for up to $1 billion in damages according to Bloomberg:
“Tesla worked collaboratively with Amazon to root cause the event and remediate,” [Telsa] said. “We also performed inspections at the other sites, which confirmed the integrity of the systems,” adding that all 11 Amazon sites are generating energy and are monitored and maintained. News of the Amazon fire comes just three days after Walmart dropped a bombshell lawsuit against Tesla, accusing it of shoddy panel installations that led to fires at more than a half-dozen stores. The claims threaten to further erode Tesla’s solar business at a time when the company is fighting to gain back market share.
'Amazon Primed' is a short recap of the larger stories that dominated the headlines this week surrounding everyone's favourite cardboard abuser, Amazon. If you want the full, deep look at what Amazon is doing every week, subscribe (paid) to the weekly 'What Did Amazon Do This Week' newsletter (called 'Obsessive...in the very best way."). Want to find out more about Amazon's biggest competitor? Make sure grab a ticket to www.thetbdconference.com (London, Dec 6)
