Evaluation of Problems in Amazon

Extended Organizational Introduction

My project study for my project paper will be expanded by Amazon. Amazon. Inc was started
in July 1994 to sell books as an online store, but in 1996 Amazon opened its selling product
to the public and turned them into an Amazon.com product. Jeff Bezos is the founder of
Amazon. It has its headquarters in Seattle, DC, but the first notion of online sales has taken
place at the Jeff Bezos garage. It is the grin line starting at A and completed at Z, which
symbolises Amazon's readiness to sell and deliver everything for everyone across the world.
Amazon's logo is about to tell its own tale. We're all able to see almost two decades later how
Amazon honoured the promise. Amazon, "The company operates in three sections: North
America, Amazon Web Services and International (AWS). The products of the Company
include products and materials which it buys from suppliers and from third-party vendors for
re-sale. It also produces electrical devices and sells them'

The company purchased Whole Food Market Inc. on August 27, 2017, "which delivers
healthy and organic food, and manufactures throughout its locations. The company also
supplies a wide array of products such as bananas, avocadoes, big brown ovens, grown
salmon and tilapia, kale baby, and babies' lean beef, creamy and crusty almond butter, gala
and foji, rotisserie chicken; all of them are guaranteed organic, animal welfare eighty five
percent lean, organic and otherwise guaranteed. The company's entire food market includes a
whole year's Everyday value, Whole Food Market, Foods Whole and Catch which is little or
nothing processed and refined through Amazon.com, Amazon Fresh, Prime Pantry and Prime
Now. Healthy and private Brand Products are available. Amazon lockers are also supplied by
the company and are offered in wholen food markets. Consumers can pick up purchases from
www.Amazon.com to their nearby Whole Foods store or return to Amazeon during a shop
visit" (AMZN.O on NASDAQ, 2018).

"It consists mostly of merchandise sales of consumer products from their merchants, and of
subscriptions or payments to websites centred on North America such as www.amazon.com,
www.amazon.ca and www.amazon.com.mx. The Compagnie's First Segment is North
America" Shipping merchandise from North America's websites are in the North American
sector."

The Second sector is international – 'The primary part of the segment is merchandising of
consumers' items from its salespersons and suscriptions or payments by means of Web sites
based on international sources, like www.amazon.com.au, www.amazon.com.br,
www.amazon.cn, etc. It also authorises exports to Mexico, Canada and the U.S. from these
overseas websites." The third category is Amazon web services (AWS) – "This segment
comprises of sales for newsagents, companies, government agencies and academic bodies of
computer, storage, data base and other services"

Amazon provides several other services, not least: "publication, certain subscriptions to
digital content, publicity and co-branded credit cards." Last but not least Through its retail
websites it provides consumers with selection, pricing and convenience. It creates its websites
to let them and third parties to sell hundreds of millions of products in decades of categories.
The company offers clients direct and mobile websites and applications access to its website"
(AMZN.O on NASDAQ, 2018). Kindle Direct Publishing is also an online service providing
authors and independent publishers with a royalty option for independent authors and
publications and making their works available throughout the Kindle Store along with
Amazon Publishing. It offers additional tools that make it possible to publish and sell content
by authors, musicians, filmmakers, app developers and others. Amazonia Products and
Services are in short order – although it began as an online book store and subsequently
diversified to sell DVDs, blu-rays, CDs, video downloading/streaming, MP3
downloads/streaming, software, video games, electronics, furniture, food, toys and jewellery.
Amazon has a wider range of products and services available.

It is a leading supplier of cloud infrastructure services, mainly client electronics, Amazon's

Kindle e-readers, fire tablets, and Fire TV- (IaaS). As the most valuable retailer in the U.S.
Amazon suppressed Walmart by 2015. "With total sales and market capitalization, Amazon
has become the world's largest online retailer. With a total brand value of US$ 70.9 billion,
Amazon is the world's leading online retailer and the second most important e-commerce
company behind Google, and more than 50% of its clients are repeated shoppers." (Company
Profile of Amazon.com). Amazon's business strategies are devoted to four principles: client
preoccupation and competition focus, invention love, business excellence commitment and
long term thought. These concepts give rise to the competitive advantage of Amazon." (). In
that way, we can observe that Amazon has the market leadership in e-commerce with the
greatest number of customers. Amazon has created a huge, large, competitive and exceptional
market for team members. "In 2017, alone, the E-Commerce Giant generated USD 37 billion
in a quarter alone, a 42 percent increase compared to the previous year and employed
560,000 people worldwide and attracted two million sellers on its platform. In 2016 and
2017, total revenues rose 27% and 31% above comparable times of 2014" (Annual Report,
2017).

Since Amazon is the world's leader in the fields of retail and e-commerce, Amazon has no
problems. The larger the company, on the other hand, the bigger the challenges. Amazon
recently faced few challenges such as turnover as the personnel of this company is so large
(there is not enough to satisfy all employees), to maintain Amazon's prime client status (two
days of premium shipping advertising), to maintain product quality (the granting of free
premium memberships to unhappy clients)

Expanded The problem selected description

Why Amazon staff turnover is significant and how it does not maintain a balance between
work and life

In any organisation, employee sales are more or less frequent. But this very turnover in
Amazon is significantly high, meaning that the management of staff is fundamentally flawed.
I found that Ruth Mayhew explains "the quantity or percentage of employer turnover leaving
the firm and being replaced by new employees," according to the study of several articles on
Amazon's turnover (Mayhew, 2017, para. 1). "Amazon ranks second among the fortune 500
enterprises, according to Per countrycale.com, for shortest tenure" (Companies, 2017).
Robbins & Judge (2015) says that "A high turnover rate can also interfere with the effective
operation of a company when skilled and experienced employee leave and substitutions have
to be found to assume responsibilities" (p. 27). So, even if profit is skyrocketing, why staff
leave Amazon.
There are numerous causes for the high turnover of Amazon employees. Managers have
shown little motivation to achieve leadership which means employees are dissatisfied,
stressful working lives that have not kept balance between work-life balance strategy, the
culture of organisations, the goal establishment, and the full fulfilment whatever might be a
reason to leave Amazon. In 2015, Kantor and Streitfield wrote in the NewYork Times, "At
Amazon workers are encouraged to tear each other apart in their long and tired meetings
(emails arrive last midnight, followed by text messages asking why they were not responded)
(Para 3). For any organisation, it is not ideal that personnel are coming, joining and leaving.
Because the procedure involve costs when a person departs an enterprise and subsequently
the organisation employs a new employee. Some of the costs involved include interviewing
fees, hiring charges, training costs and low sales prices. The turnover of employees certainly
would have a negative influence on corporate productivity, regardless of what Amazon is

How customers misunderstood 2-day primary shipping

All must be immediate, rapid, and rapid. Work is done with 1-click. Yes, when we order
something from internet, we are restless spirits and desperately wait for an arrival
notification, an email or delivery confirmation. One of the methods Amazon is not expect
customers to wait long for their things to arrive. At the start, Amazon attempted to supply its
consumers with merchandise within 4-8 days. Such service research has been fairly
successful. "There are 40 companies on the list, and Amazon was usually in the top 10," says
StellaService, a customer service organisation that assesses online retailers' performance. We
saw them falling outside the top ten this year, which is the first time we saw it happen (Kate,
2016)." Amazon prime was founded in 2005 and has since gained popularity, as a result of
speedy delivery services in comparison with non-prime members.

Amazon is suspected of increasingly focusing on the two-day free shipping concept for
Amazon-Prime and being behind the orders of its normal consumers. This doesn't mean
certainly that Amazon is slower, but it is not the quickest, because it shifted its focus from
normal standard shipping to 2 days of premium shipping to actually benefit more by making
promises to many non-prime customers. Stella Service even says, "With the help of a
speedier means of getting shipments to shoppers or shoppers to store inventory near shoppers,
Apple is two days faster and Best Buy is three days faster." (Kate, 2016) In the fourth quarter,
for example, StellaServices' analysers received Best Buy orders at average three days in
exchange for deliveries faster than Amazon.com's orders. The holiday season includes this.

How Amazons good will ruined by third parties and encouraged customers to submit fake
reviews

As more and more third-party vendors join the Amazon team, the product quality decreases.
Amazon offers a vast choice of products with diverse price ranges as a platform for buyers.
The pricing of Amazon's products is mostly relatively lower because of North American
wholesalers and also third-party merchants. So it's got a positive side, but it's a nasty side too.
I think it'd be a little pricier than lower quality products to get better customers gladly. It even
caused a challenge for clients to choose a single thing among thousands of different products
for these various third party salesmen.

However, these third-party sellers have even developed other strategies to keep the goods low
quality and repeating products to urge their clients to retain the product on Amazon so they
can continue doing the business. Amazon is also responsible for part of the blame. It is
claimed that Amazon even freely bribed its customers to keep poor products and turn their
unfavourable evaluations into good reviews. If Amazon does not take action, sales will
decline because custodians lose their confidence. And we're in such a century that each day
new technologies are emerging, no wonder something greater than Amazon can come and
seize Amazon unless Amazon takes actions to protect itself and blame and get rid of this
accusation.