European Commission Files Antitrust Charges Against Amazon

After months of anticipation, the European Union, led by competition chief Margrethe Vestager, is finally filing antitrust charges against Amazon, with the belief it has enough hard evidence to charge the Big Tech company. The EU claims that Amazon used data to build copycat products that undermines independent businesses, especially in France and Germany. EU regulators also have an ongoing investigation into Amazon’s alleged practice of favorable treatment for its “Buy Box” and “Prime Label” features. Continue reading European Commission Files Antitrust Charges Against Amazon

How Businesses Should Prep for the Coming Ubiquitous 5G

Telecommunication companies and others are spending billions of dollars to make 5G ubiquitous, for smartphones and the Internet of Things. Speed is one benefit of 5G but also important is that its high bandwidth enables more capacity, which allows manufacturing plants and facilities to capture more data and communications. That is a game changer for a manufacturing plant with hundreds of thousands of signals from robots, HVAC and lighting systems and machinery that communicate to an asset management system. Continue reading How Businesses Should Prep for the Coming Ubiquitous 5G

Amazon Fresh Stores Aim to Reinvent Shopping Experiences

Amazon Fresh Stores have a very different look from Whole Foods, which the e-commerce giant purchased in 2017. The Fresh Store, which just opened its second outpost last week in Irvine, California, looks like a small warehouse, with Dash Carts offering integrated touchscreens and cameras. The Fresh Store is designed to be as easy as possible to retrofit in an existing retailer space and the look is spartan and appears to be optimized for robots. Prepared foods are available but there’s no place to sit and eat them. Continue reading Amazon Fresh Stores Aim to Reinvent Shopping Experiences

Amazon’s Small Hub Plan Threatens UPS, U.S. Postal Service

As the holiday season looms, Amazon plans to launch 1,000 small delivery hubs throughout the U.S., according to sources. With COVID-19, online orders soared, and Amazon was not capable of meeting its two-day delivery pledge. The company hired 175,000 new workers, which has helped clear the delivery pipeline, but wants to ensure that Amazon Prime subscribers can get as many products as possible on the same day. Its rivals Walmart and Target are able to speed deliveries due to their thousands of well-located stores. Continue reading Amazon’s Small Hub Plan Threatens UPS, U.S. Postal Service

Amazon Hires, Builds and Grows During the COVID Pandemic

In August and September, Amazon revealed plans to hire 20,000 more employees in seven cities in the U.S. and the UK. The massive e-commerce company has seen tremendous growth during the coronavirus pandemic as have other retailers including Walmart, Target and Instacart. Amazon, which continues to allow employees who can work from home to do so until January 8, is continually recruiting hourly positions at warehouses. Although it pays a minimum of $15 an hour, Amazon no longer provides incentive pay or stock for hourly workers. Continue reading Amazon Hires, Builds and Grows During the COVID Pandemic

Court Finds Amazon Liable for Defective Third-Party Products

The California Fourth District Court of Appeals ruled that Amazon can be held liable for the damages created by a defective replacement laptop battery purchased from a third-party seller on its marketplace. The buyer, Angela Bolger, reportedly got third degree burns when the battery, from Amazon third-party seller Lenoge Technology, caught fire. Amazon has defended itself against such liability lawsuits so the appeals court decision is a major blow to its e-commerce business. The company currently faces several other liability suits.

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Amazon Shipping Recovers, States Question Worker Health

According to Amazon, the crush in deliveries sparked by the coronavirus pandemic is slowing down and it is again allowing suppliers to send an unlimited amount of inventory to its warehouses. Consumers can once again expect to see Amazon’s typical one- and two-day deliveries return in the next few weeks. Once it fell behind, Amazon had to hire 175,000 people to meet demand. As to the number of its own workers struck down by COVID-19, Amazon declines to reveal figures, saying they are “no worse” than the rest of the country. Continue reading Amazon Shipping Recovers, States Question Worker Health

Amazon Chief Returns to Daily Operations During Pandemic

With Amazon struggling with supply chain issues, labor unrest and intense consumer demands, founder Jeff Bezos returned his focus to the company’s day-to-day operations, with daily phone calls to solve inventory and testing issues and talks with government officials. On April 8, he visited an Amazon warehouse for the first time in years. Even as Amazon struggles with coronavirus-related issues, the company is one of few to do well financially in the midst of the pandemic. Bezos is $25 billion richer than in early March. Continue reading Amazon Chief Returns to Daily Operations During Pandemic

Amazon Scales Up to Address Demand During the Pandemic

After prioritizing essential products, such as cleaning and healthcare items, Amazon is again allowing third-party sellers to ship non-essential products. Its refusal to accept shipments of such products frustrated its third-party sellers that form 58 percent of Amazon’s overall sales. Amazon, which will limit quantities of non-essential products, is hiring 75,000 more employees to keep up with demand. The company also asked new Amazon Fresh and Whole Foods Market delivery/pickup customers to join a waitlist. Continue reading Amazon Scales Up to Address Demand During the Pandemic

White House Cracks Down on Counterfeit Goods Sold Online

The Trump administration is cracking down on counterfeit products sold over the Internet, warning warehouse operators and e-commerce platforms such as Amazon that they will pay fines if they don’t help identify such products. The Department of Homeland Security released a report on the problem, and the White House in concert with U.S. Customs and Border Protection is leading the initiative. The recent trade agreement with China requires that country to curb counterfeiters or risk potential new tariffs. Continue reading White House Cracks Down on Counterfeit Goods Sold Online

Amazon Adds Human Touch to Its Recommendation Model

Amazon created features — such as searching by star ratings or browsing best-selling products — to help consumers navigate “choice overloads” when selecting among thousands of similar products in any given category. The online shopping behemoth also offers “Amazon’s Choice,” which it says is given to “highly rated, well-priced products available to ship immediately.” Amazon will not reveal if a human or an algorithm is making these choices but, given the massive number of products, the latter is more likely. The company did reveal, however, that it recently began adding recommendations from outside publications. Continue reading Amazon Adds Human Touch to Its Recommendation Model

Amazon Will Pay Employees to Quit, Start New Companies

Competing for delivery drivers in what The Wall Street Journal calls the tightest U.S. labor market in 50 years, Amazon is willing to pay its current employees to quit their jobs to start local package-delivery businesses in order to help the e-commerce giant with its ambitious delivery goals. In an increasingly competitive market, Amazon is looking to move away from depending on the U.S. Postal Service and other companies to make deliveries happen. Instead, Amazon announced plans to invite entrepreneurs of its own making into the mix.

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In First, Amazon Offers Free Holiday Shipping for All Orders

To better compete with Walmart and Target for online holiday shopping, Amazon will offer free shipping without the $25 minimum purchase required of shoppers who are not Prime members. This first-time Amazon offer is good only in the U.S., and will be in effect from November 5 until Amazon can no longer promise delivery in time for Christmas, typically five to eight days. Also for the upcoming holiday season, Amazon plans to add 100,000 staffers, fewer than the last two holiday seasons, evidence that the company is successfully automating operations. Continue reading In First, Amazon Offers Free Holiday Shipping for All Orders

Worker Shortage Behind Amazon Pay Raise to $15 Per Hour

On November 1, Amazon will raise the minimum wage to $15 per hour for all its U.S. employees, including part-time workers and those hired through temporary agencies. More than 250,000 Amazon employees, including those at Whole Foods and 100,000+ workers hired for the holiday season, will benefit from the boost. The company also stated it would lobby to raise the federal minimum wage, which has been $7.25 per hour for almost ten years. Many interpret Amazon’s move as a response to a tightening labor market and political pressure. Continue reading Worker Shortage Behind Amazon Pay Raise to $15 Per Hour

Amazon’s Two-Day Delivery Sets the Bar for Today’s Retailers

Amazon’s Prime program that offers two-day shipping to its 100 million members has become a standard that other retailers have struggled to meet. Last year, Target, Walmart and many Google Express vendors started offering two-day delivery, some of it free. The latest company to do so is Overstock.com, which claims it can reach 99 percent of the U.S. in two days from one distribution center in Kansas City, Kansas. In comparison, Amazon operates 75 fulfillment centers and 25 sortation centers. Continue reading Amazon’s Two-Day Delivery Sets the Bar for Today’s Retailers

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