Amazon’s Dangerous Genius
I am marveling at the Genius of Amazon and Jeff Bezos but also concerned about their future direction.
Traditionally, they have invested for the long-haul!
For years, Amazon never made a dime, actually operating at a loss.
But all the time making long-term investments in infrastructure (warehouses, supply chain, logistics, etc.) and in customer acquisition.
Their great selection, reasonable pricing, free shipping, and easy return policy lured hundreds of millions of people to drop the brick-and-mortar stores and even other online retailers to go Amazon all the way.
Most people I know get virtually everything and anything on Amazon these days.
Of course, the fear always was that Amazon would become such a dominant player and monopoly that no one else could compete.
For a long time, they didn’t even charge sales tax!
It seems people can’t even imagine not having Amazon — where in the world would they shop and get all their stuff in 2-days or less (Prime Customers) and still be able to return all the crap they don’t even want.
So here is the rub.
Now that Amazon is so dominant, guess what? They are raising the Prime Rates and cutting back on returns — with customers actually being banned for returning too much.
Ah, the lure, bait and switch.
Amazon got us all as their slave customers — and we let them and love them for it.
And after they snared us with all the convenience and security of being able to return stuff, they pull the rug and what can you do, but cry foul?
I love Amazon for their genius and what they have done for eCommerce, but I don’t like that they’ve built in a sense a dark empire to prey on their loyal customer base.
Mr. Bezos, here is my message to you…
Please stay true to your ideals of customer-centricity and long-term investment in the company that has been the foundation for what you have built into such a retail juggernaut.
Keep valuing your customers and serving them well and not trading them in for short-term profit gain.
In the end, that is a winning strategy that won’t land you in either regulatory hell and/or antitrust action to then force you to bend your knee or your ultimate breakup.
Remember, you have one chance to make the right decision for Amazon or I fear that it’s not product returns that you’ll be for long worrying about. ;-)
(Source Photo: Andy Blumenthal)