Categories
Amazon.com

What’s love got to do with it?

Like many of you I’m sure, for many, many years my go-to purchasing behavior has started with doing a search on Amazon to look for whatever it is I might be needing to buy. Rather than wasting time trying to shop locally or doing online searches for items, it was just easier and simpler to do that quick Amazon search for an item.

With Prime, Amazon had biased my behavior in favor of doing a quick purchase from them rather than looking elsewhere. I had confidence that I was getting a fair price and that the item would be in my hands within a day or two. Maybe it’s too strong a word for something as mundane as shopping, but I did love the experience of buying from Amazon – because it was so simple an easy.

But that’s changed – slowly over time – and I’m not the only one who’s noticed it. A couple of recent stories (among others) highlight this:

  • New York Magazine: The junkification of Amazon – “Late last year, The Wall Street Journal reported that Amazon’s customer satisfaction had fallen sharply in a range of recent surveys, which cited COVID-related delivery interruptions but also poor search results and “low-quality” items. More products are junk. The interface itself is full of junk. The various systems on which customers depend (reviews, search results, recommendations) feel like junk.”
  • Barry Ritholtz: How Amazon became ordinary – “Generally speaking, I have been a satisfied Amazon consumer – at least up until the pandemic. That was where cracks in the Amazon armor began to show.”

This unfortunate evolution in how Amazon feels to me, a long-time satisfied customer, makes me sad and disappointed. Clearly, I’m not alone. I wish the senior management team at Amazon would sit up and pay better attention to the impacts their “optimization efforts” have been having on the satisfaction of long-time customers. They must understand that an erosion of satisfaction leads directly to switching behavior.

More recently, Amazon announced the elimination of another benefit (Amazon Smile) which, in the overall scheme of things, wasn’t a big deal – but which did make me feel better about my spending at Amazon. Amazon Smile benefited a local non-profit by donating 0.5% of my spending on Amazon at no additional cost to me. This really feels like a “penny wise, pound foolish” move – one that doesn’t lift up my opinion of the company. Another brand diminishing move.

Meanwhile, this morning an Amazon blog post trumpeted how it’s ranked as a widely admired company in a recent Fortune survey: “Amazon ranks No. 2 for the seventh year in a row.”

There is so much to admire about Amazon and everything it provides. Yet it feels to me like it’s slipping and leaving me disappointed. I’d like to get back to feeling delighted with the Amazon shopping experience instead.

Let’s hope the company’s management realizes I’m not alone.

Categories
Amazon.com

Touring an Amazon Fulfillment Center (OAK4)

Scott Loftesness visiting OAK4

A few days ago I signed up for a tour of one of the nearby Amazon Fulfillment Centers – OAK4 – located in Tracy, California. I was pleasantly surprised to find availability for a tour almost immediately – didn’t have to wait for availability. You can check availability of a tour near you on this page. You can also read more information about what you’ll see on a Fulfillment Center tour.

I was one of about ten people taking the tour. We met in the lobby of OAK4 and were greeted by a team of four Amazon associates who led us on the tour of the facility. They escorted us to a large briefing room where we learned more about the process flow of goods through the Center and got outfitted with headphones and a wireless receiver so that we could hear the voice of the tour leader as she took us through the white noise of the Center. I’m wearing mine in the phone above!

I particularly enjoyed seeing the “stow” process – where incoming goods are randomly placed into bins on pods that robots move around the facility. In my picture, you can see the pods in the background – yellow stacks powered underneath by Kiva robots that whisk the pods around from place to place. Fascinating to watch the movement in action!

Anyway, back to my fascination with “stow” – because it’s a random process. Here’s Amazon’s description:

Instead of storing items as a retail store would—electronics on one aisle, books on another—all of the inventory at Amazon fulfillment centers is stowed randomly. Yellow, tiered “pods” stack bins full of unrelated items, all of them tracked by computers. This counterintuitive method actually makes it easier for associates to quickly pick and pack a wide variety of products.

The “stowers” job is a bit like solving a jigsaw puzzle. Up comes a pod of bins delivered by a robot. The stower has a table of boxes filled with all manner of different items – selects one of the items and finds a place to stow it in one of the bins. The computer tracks this item placement so it knows where each and every item is located – in which bin in which pod. When a order arrives, the pod is delivered by the robot to the “picker” who retrieves the item and places it into a tote that will contain all of the items for that particular order. From there, the tote moves on to be packed into a box, labelled and sent off for shipment.

It’s amazing to see all of this operating at such massive scale. If you have an opportunity to visit one of the twenty or so Amazon Fulfillment Centers near you that offer tours, I highly recommend taking the tour. It’s fascinating! Thanks especially to the team at OAK4 for taking our group on such a great tour!