Amazon will emerge even stronger as a result of the crisis. There’s no questions that as the world’s leading online retailer, Amazon is under tremendous pressure to deliver for consumers through this crisis. And while there is no shortage of challenges and controversies the company is dealing with, the fact is, they seem to be doing a reasonably good job given the difficult, challenging circumstances. Ultimately people will look back on how companies handled the crisis and ask, “did the company have good intentions and did they seem to be doing the right thing?” Overall, Amazon is.

Amazon faces two key issues right now. Inside the company, there are plenty of HR challenges relating to employment conditions, from health concerns to workloads. These aren’t as public-facing as the execution problems, but one set of issues has a huge impact on the other.

As to those execution problems, this is the first time I can recall Amazon’s impregnable reputation for blocking and tackling looking vulnerable. For consumers to continue dealing with weeks-long outages of commodities like sanitizing wipes or toilet paper (not to mention the price gouging) seems like a breakdown of the system. And delivery-based services like Whole Foods and Amazon Fresh are crippled in market after market.

COVID-19 is an unprecedented challenge for the dominant online retailer, with the breakdown of traditional brick-and-mortar retail, but Amazon doesn’t seem any closer to fixing its operational problems than it was a few weeks ago.

Amazon will be forgiven for most of the out-of-stocks and supply shortages. People may be frustrated but they also realize that this was a completely unprecedented and totally unpredictable set of circumstances. The scale of the demand surge Amazon experienced had to be off the charts. Amazon needs to demonstrate that while they are dealing with all the product inventory issues, they are also doing everything possible to protect the health and welfare of their employees and customers. “Operational excellence” now has a huge HR/employee welfare component.

In my view Amazon is failing, badly. Walmart has a better in-stock position and works better on substitutes.

As some parents would say to their kids,”suck it up” Amazon. This is what happens when you are the biggest and most powerful company in retail. You have to take the good with the bad and yes, the world is watching and will be judging you on how you handle this crisis and beyond. Amazon will need to earn their logistics stripes each and every day and it will be a challenge — but if not Amazon, then who?

I don’t think this is a make-or-break moment for Amazon, but I do think the company, the rest of the e-commerce world, and the consumer are on the verge of a significant step-change. The real test of Amazon’s brand staying power won’t be that shoppers will have to wait extended periods for non-essential items. It will be whether or not Amazon can get, and stay, in-stock on those essential items a panicked nation suddenly feels a collective urge to horde such as Clorox wipes and, yes, toilet paper. Waiting a few weeks for the latest Stephen King novel will be forgiven. Having your family at prolonged risk will not, especially in areas such as New York and here in Michigan where the infection and death rates continue to climb. Amazon has evolved from a mega-convenience to a (perceived at least) life-or-death necessity for shoppers, and that’s a heavy mantle to carry. As to what will define success, the answer is two simple words – total transparency, and so far they seem to be doing a… Read more »

This is interesting. “An internal memo attained by the WSJ said Amazon had made more than 100 significant changes to human resources and operations over the past few weeks to deal with the business surge and workplace conditions. Beyond higher pay, Amazon has upgraded sick days and paid time off policies. Last Thursday, Amazon announced it would make millions of masks available and check temperatures at all warehouses. The company is analyzing camera feeds with machine learning to ensure workers are keeping adequately apart.”

The media seems to be broadcasting that Amazon is doing nothing. Based on the media reports, I would give Amazon an “F”. Based on what actually seems to be happening, I would give them an “A”. “A” meaning, I am not sure they or anyone could do better.

Amazon is clearly struggling to execute, which is a first, at least to my recollection. As others have commented, getting – and staying – in stock on essentials will likely have the longest impact on consumer protections. A personal testament to the frustration’s long-lasting potential: I am currently not going to any stores, and all my food and essential supplies are being purchased via delivery. I expected to be able to count on Amazon for my dry goods/pantry items/paper goods needs. Unfortunately for me, they have been completely unreliable. Items I need are perpetually out of stock, and despite their policing efforts, price gouging is rampant. I am frustrated and angry, and I am quickly creating new buying habits from new sources that I expect will not soon change.

The pandemic is mostly a “make” time for Amazon, rather than a “break” one. As a single source provider across a wide range of critical products, Amazon is more and more the fallback that consumers trust. The challenge is in supply chain, particularly the “first mile” rather than the last one. Obtaining inventory and then turning it at rates much more rapid than ever forecast will strain Amazon’s logistics to the max. Given the challenges that other retailers are facing, I think Amazon comes out of this super strong.

Any suggestion that Amazon will emerge stronger is jumping too far too fast. Because retailers have had to close their doors, many shoppers are being reminded of why they love brick-and-mortar — and it’s far more than merely “buying goods.”

Amazon also faces backlash from delays. My students who ordered books through Amazon are having to ask for delays in homework due dates because Amazon cannot deliver their books.

Perhaps we will end up seeing that Amazon’s dominance isn’t so “dominant” and relies on appearances created through a carefully crafted house of cards.

It probably won’t be that clear. But while Amazon’s PR department will be telling us how great they are, reality won’t support that claim.

Yes, the world will scrutinize Amazon’s crisis management now. Protecting workers’ well-being and being more generous with them during this pandemic can help Amazon’s reputation as it irons out current logistical challenges.

Yet, big picture, Amazon is poised to win big because it *is* the supply chain. The e-commerce giant is perfectly positioned for this moment.

Clearly it’s a retailer; its private labels make it a supplier, too. Recent investments in private label grocery and pharmacy products help Amazon provide affordable essentials.

Amazon’s split with Fed Ex increased its logistical reach. Selling Amazon Go technology to other retailers will help consumers get in and out of stores fast (while minimizing their need to touch anything).

Also, more people will invest in Prime memberships to access faster service (while cocooning with Kindle, Prime Video and Alexa).

As mid-market retailers, including department stores, fade, I expect Amazon will move into urban real estate to boost its reach, speed and agility. (HQ2 reports offer municipal data on exactly which properties to buy!)

It’s wild to think that, just a few weeks ago, I wrote a piece on whether Amazon was on its way out. We’re seeing the benefits and detriment of mass e-commerce retailers in stark clarity right now. For consumers, Amazon is a lifeline; for workers, it can be fatal. How Amazon handles coronavirus outbreaks in warehouses and among delivery drivers will shape consumer perception of the retailer in the years that come.

It’s a huge opportunity for Amazon but also has some potential pitfalls. The current situation will likely increase the size of the overall online market so if Amazon can grab share then this will be good news for them for the future – but potentially bad news for others…

Looks like Amazon got caught a little flat-footed with the surge. But that’s understandable (to me) considering everyone, literally everyone, is at home and trying to order from them. But the question of whether they’re at a make-or-break point is absurd. NO ONE, repeat no one, is going to come out of this whole mess in better position than them, hands down. The “problems” they’re having now are what we used to call “good problems” and they’re already adjusting and will continue to adjust on the fly while their business grows an easy 25%. That’s a big number on a big number.

Sam Walton used to say, “If you see your competition over there drowning, don’t throw them a life saver, go over there and stick a hose down their throat!” Which I love, but that won’t happen with AMZN. But for every other retailer? This will quite possibly be the hose (look out Target).

First, it seems that Amazon is having weeks of Prime Days at this point. Demand, volume, and sales are certainly up, even if delivery windows are extended beyond normal. Second, customers, as always, will decide the fate of Amazon and are also going to give Amazon a bit of a break as they deal with this crisis and actually seem to be able to deliver better than many retailers. Bottom line, Amazon is going to do just fine and come out of this crisis stronger than ever, using their experience to again raise the bar on delivery performance and customer value.

Amazon is dealing with two main issues now. First, Their warehousing and distribution model was geared for being an everything store that held a massive variety of products with an ability to ship a few of them to wildly disparate locations around the country. And they did that exceedingly well. The problem is that now EVERYONE is home ordering the SAME products — something Amazon clearly never anticipated, and their warehouses are not stocked with the right inventory to support that model on essential items. That’s why so many people are describing delay after delay in getting their shipments from Amazon. The silver lining for Amazon is that every other e-commerce site is in a similar situation. Even Walmart isn’t immune to this — you’d have better luck in most cases visiting a Walmart store than going online. In my area, grocery delivery — only recently available in most cases — is struggling to keep up. Most services simply won’t give you a delivery or pickup date at all for days on end. Consumers are… Read more »