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If an eCommerce giant with high order consumption knows how to get around in no time, then it must be Amazon. But the corona virus also pushes the online giant to its limits.
• “Amazonians work 24 hours,” said CEO Bezos
• Pandemic causes flooding of orders
• Amazon is fighting for balance in the supply network.
Until now, the struggle of online retailers has focused on one thing: attracting as many visitors as possible to their own shopping platform, and then encouraging them to buy as many products as possible. Apparently Amazon had a recipe for success and became the best dog in the industry. However, due to the corona virus, there is a state of emergency that is insurmountable. And special situations require special measures. This leads to an extraordinary rethink on Amazon: the desire for fewer orders.
Long lead times and bottlenecks due to Corona: avalanche of orders hits Amazon
Because of the rampant infection with the coronavirus that led to a severe pandemic, many people have to stay home and leave as little as possible. As a result, many people ordered significantly more Internet products than usual. Amazon, as one of the dominant online retailers worldwide, could barely save itself from orders, delivery times were immediately extended, and warehouses threatened to be vacated. For top pampered customers with fast turnaround times, a fatal turnaround in Amazon’s history.
It quickly became clear that steps beyond responding to the virus with safety precautions and higher hygiene standards had to be taken to dominate order volumes. There were two reports that the e-commerce giant was looking for more than 100,000 new employees to meet the needs of Amazon’s customers. In addition, the US group began prioritizing orders such as medications and household items. However, Amazon had to go even further: On the one hand, it was announced that some Prime customers in the US. USA They could benefit from this if they were patient and accepted “haste-free shipping.” On the other hand, Amazon had to postpone its sales guarantee, Prime Day. But all that still doesn’t seem to be enough. As the Wall Street Journal (WSJ) reports, the crown beneficiary is struggling to take an unusual move and is now backing down.
How Amazon wants to counter the crown-induced burden of order
Group leader recently opened Jeff Bezos In a letter to shareholders, the challenge facing the group today: “Amazonians work 24 hours a day to obtain the necessary deliveries directly to the front door of the people who need them.” Demand for vital products is high and will remain high, the founder of Amazon suspects: suppliers and the supply network are under great pressure.
To stop the large increase in the number of orders, Amazon is supposed to work on the changes so that they no longer encourage customers to buy. In a conversation with people familiar with the matter, the WSJ learned that, among other things, the fairly popular recommendation widgets should have disappeared from the site last month. For example, Amazon customers are shown in this location on a product detail page that other items were purchased by other customers. Another previously unconfirmed measure is said to affect the usual Mother’s and Father’s Day campaigns, which are now approaching: advertising space for campaigns and purchase suggestions will be suspended this year, reports the WSJ. By doing this, Amazon expects people to make fewer impulsive purchases and focus on essential products.
Amazon wants to sell less, save advertising costs?
Due to the huge increase in order volume and overloaded supply chains, there is now an extraordinary desire by online giants to sell fewer products. “Generally, we want to sell as much as we can, but our entire network is so full of hand sanitizers and toilet paper right now that we cannot meet the other demands,” the newspaper quoted one of the people involved in the changes as saying. temporary. Amazon employees. To curb the increase in traffic to the Amazon website as much as possible, Google’s advertising budget is said to have not been fully implemented.
According to inside information, an internally integrated “speed team” must now discover how and when the American group can return to its selection and delivery standards. The first suspicions were that it could be two months before normality in Amazon’s capabilities could be considered. But for now, the American group is primarily concerned with rebalancing the load on the network.
Theresa Holz / editorship finanzen.at
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