In March, Americans faced a pandemic causing panic and stocking up. However, the routine became challenging as supermarkets and big-box retailers became viral gantlets. Lines stretched out, and brick-and-mortar retail shut down, making it Amazon’s time to shine.
Amazon is now in its hardest time. Amazon faces challenges that can be considered the toughest in its history. (Photo: Unplash)
According to The New York Times, Amazon faces challenges in fulfilling orders due to the high demand for certain products. By March 17, the company stopped sending goods not in high demand to its warehouses, causing scrambling to fulfill orders for everyday necessities like soap, hand sanitizer, and face masks.
Customers encountered broken Amazon shelves for the first time, akin to supermarket shelves, with unclear explanations and no explanation provided.
Searches for antibacterial soap and hand sanitizer revealed irrelevant products, scams, and overpriced items. The company removed over 3,900 seller accounts and half a million products for price-gouging.
Widening shortages reflected changing customer attitudes, lifestyles, and needs during Covid-19. Well-known brands, direct competitors, and half-related items were sold out.
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As Amazon faces challenges, its e-commerce machinery was failing, causing the Everything Store to be poorly stocked and exposing customers to scams and exploitation.
The store appeared overwhelmed and lacked control over its shelves, while its fulfillment centers were experiencing distress. Employees were also experiencing illness, with some staying home due to health concerns and others staging walkouts.
Amazon’s CEO Jeff Bezos warned investors about a challenging period due to the closure of brick-and-mortar stores and the increasing popularity of e-commerce. He warned that about $4 billion in expected operating profit for the next quarter would be absorbed into Covid-related expenses. Amazon faces challenges like experiencing a surge in demand but experienced a 43% decline in quarterly operating income in North America and international losses. Bezos praised Amazon’s adaptability and durability but called the Covid crisis the hardest time they’ve ever faced.
Amazon hired 175,000 workers in its fulfillment-and-delivery network in April, showcasing its confidence. Wall Street is more confident in the company, with its stock price hovering near a record high, securing Bezos’s status as the world’s richest person. Amazon has long been an alternative to shopping, but its complex machinery, supported by invisible middlemen and hundreds of thousands of workers, has revealed its true nature.
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