[HN Gopher] The brutal business practices of Amazon
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       The brutal business practices of Amazon
        
       Author : makerdiety
       Score  : 110 points
       Date   : 2024-04-26 16:49 UTC (6 hours ago)
        
 (HTM) web link (www.vanityfair.com)
 (TXT) w3m dump (www.vanityfair.com)
        
       | mehulashah wrote:
       | I was Amazon for quite some time, and also outside of Amazon
       | trying to compete against them. The company is both decentralized
       | and has a culture of delivering. While that sometimes has
       | unintended consequences, the people there are quite aware that
       | they can sometimes be an elephant in a china shop. There are
       | practices in place to rein that in. Nonetheless, investigations
       | like this book hardly ever give a balanced view.
        
         | mangamadaiyan wrote:
         | What sort of investigations provide a balanced view, then?
        
           | kmeisthax wrote:
           | The ones that don't give him moral injury for working at
           | Amazon, presumably?
        
             | karaterobot wrote:
             | That's not exactly the most generous interpretation of that
             | comment.
        
             | StressedDev wrote:
             | Please do assuming that the original poster is acting in
             | bad faith. I have seen a lot of reporting about disfavored
             | organizations, and it is often unfair. I do not know if
             | this reporter has done a good job or not but I have seen a
             | fair number of anti-Amazon articles which basically attack
             | Amazon for being successful.
             | 
             | The other problem with the article is it does not point out
             | some obvious problems Amazon has. First, Amazon is
             | expensive, and people can and do go else ware. Second,
             | Amazon's retail side is mediocre. Amazon's retail web page
             | is basically a product search engine. Outside of search,
             | Amazon does very little work to help people find products
             | they are interested in. Amazon also does almost no
             | curation. This is why it is often hard to distinguish
             | between good non-fiction books and books which spread
             | disinformation. Third, a lot of Amazon initiatives have
             | failed. Examples include Alexa (a giant money pit), the
             | Fire Phone, Amazon's video game division (over a billion
             | and basically only produced 1 moderate hit), Prime Video (a
             | mediocre streaming competitor), etc. I have also heard
             | Amazon has been destroying Twitch.
             | 
             | My main point is, the article paints Amazon as an
             | unstoppable machine when in fact it is very fallible. It
             | does some great things (AWS), some good things (Kindle),
             | some OK things, and sometimes some very bad things.
        
           | NathanKP wrote:
           | Amazon employee here, seven years at the company so far. This
           | is my personal opinion only:
           | 
           | I don't know that there are many articles I've read about
           | Amazon that have a balanced view. I will say that many people
           | who are anti-Amazon have this picture of Amazon as being more
           | ruthless (and smarter) than it actually is.
           | 
           | For example, an Amazon seller can make the claim that Amazon
           | used it's access to marketplace data to research info about
           | their product sales and then compete with them. But as an
           | insider I believe the reality is probably far more stupid: a
           | seller who had their product "copied" by Amazon was likely
           | just a middleman who was using a factory in China to make
           | their product. The middleman is basically just extracting
           | value from being a middleman. But most Chinese factories
           | produce extra product on the side. Once they setup the
           | toolchain and processes for building your product why not
           | keep the assembly lines running a bit longer and produce a
           | few thousand more copies of your product? Or maybe the
           | factory keeps a big stockpile of the rejected product that
           | was slightly bad quality, so they couldn't send it to the
           | original middleman. And if you are this Chinese factory then
           | why not sell this extra product (mixing in the lower quality
           | rejects) directly to Amazon for Amazon to list as an Amazon
           | Basic? The factory can make more money by cutting out the
           | middleman, and some ignorant Amazon product acquisition
           | worker will buy that stuff, not even realizing it is what it
           | is. No "sensitive business information" needed. So "Amazon
           | copied my product as an Amazon Basic" is probably way more
           | dumb than it sounds.
           | 
           | Or the "Amazon copied my product idea or roadmap" claim from
           | the article. Do you realize how many ideas there are floating
           | around in Amazon when you have >1 million employees? Any idea
           | you can come up with has already been suggested dozens of
           | times by Amazon employees and was probably also requested by
           | Amazon's own customers via support a couple thousand times.
           | The only question is whether that idea is worth building now
           | versus worth building later. And as it turns out when there
           | is real demand for an idea there tends to be multiple people
           | who start building that idea at the same time. In fact
           | sometimes there are multiple teams within Amazon who start
           | trying to build the same thing at the same time, and they
           | didn't even know about each other. Often one team fails to
           | build it while another team succeeds. The duplicated effort
           | eventually gets sorted out, but it happens a lot.
           | 
           | This is the type of scenario that happens time and time
           | again. It's fun to write a click attracting story about
           | Amazon as this big brutal force when the reality is most
           | likely much dumber than it seems.
        
             | eks391 wrote:
             | As a former employee of a 100K+ person company, I've had
             | these exact thoughts several times. I worked in
             | acquisitions, and constantly was finding out that we were
             | reinventing (or rebuying) the wheel internally in
             | independent departments.
        
         | brevitea wrote:
         | By "balanced view," do you mean the one where Amazon lawyers
         | attempt to erode the ever-growing list of credible reports
         | outlining Amazon engaging in and encouraging the tactics
         | outlined in the article/book?
         | 
         | From what I can tell, the article is remarkably spot on.
         | 
         | It begs the question, without government contracts[1], where
         | would Amazon actually be? Would Amazon be out of business?
         | Hmm... Makes you wonder.
         | 
         | [1]
         | https://watson.brown.edu/costsofwar/files/cow/imce/papers/20...
        
           | woooooo wrote:
           | They file all sorts of forms for where their revenue comes
           | from, they're very profitable without government help, it's
           | an easily checkable fact.
        
             | brevitea wrote:
             | That's actually a point of contention. Aside from AWS, how
             | successful is Amazon actually?
        
       | flerchin wrote:
       | Whatever happened with the "false or perjurious" testimony at the
       | beginning of the article? Nothing?
        
       | cxr wrote:
       | The writer Rob K. Henderson has covered the hypocrisy of the
       | upper and upper-middle classes in several of his pieces on what
       | he calls "luxury beliefs". The case of Amazon def. fits into a
       | similar theme.
       | 
       | You can broach the topic with uppercrust folks (without even
       | really trying) of whether supporting Walmart by shopping there is
       | conscionable or not, and you'll get one set of
       | responses/reactions. Meanwhile, it's nowhere near socially
       | unacceptable to talk about all the stuff you order from Amazon,
       | despite Amazon appearing to be by and large worse in its
       | compensation/treatment of its employees and its effect on the
       | economy and the environment--all things that aspiring bougie
       | types ostensibly profess to rank highly in their meditations when
       | it comes to Walmart.
        
         | boredinstapanda wrote:
         | That seems to reason. Unless you buy all your stuff at Walmart
         | online, you have to go in and see the people working and their
         | working conditions.
         | 
         | Amazon, you only see the checkout page. It makes it much easier
         | to ignore the problems.
        
           | lotsofpulp wrote:
           | Shopping in Whole Foods is shopping at Amazon, where you also
           | have to go in and see the people working and their working
           | conditions.
        
         | silverquiet wrote:
         | I think Amazon is actually among the best compensated of the
         | "shit jobs" out there, but it is about the shittiest (certainly
         | it's the pissiest; I've seen the bottle bombs their drivers
         | like to leave since they don't really accommodate bathroom
         | breaks).
         | 
         | I don't even really find much hypocrisy amongst the upper class
         | here; they'll outright say that these are shit jobs not
         | intended to provide a living wage; certainly not something you
         | can raise a family on. Probably said as, "those people should
         | have gone to school".
        
           | cxr wrote:
           | The Walmart distribution center built around where I grew up
           | was not known as a hub of shit jobs. It was a source of envy.
           | Amazon warehouse worker pay, in contrast, lags behind Walmart
           | by several dollars per hour and offset several years. And
           | that's assuming you're actually hired by the company
           | directly, rather indirectly as a second class worker brought
           | in through the timeless scam involving contractors employed
           | by staffing agencies.
        
             | StressedDev wrote:
             | I work for staffing agencies at I like it. Please do not
             | assume everyone wants a traditional 9-5 job.
        
               | ghaff wrote:
               | Total anecdote but had the opportunity to chat at length
               | with an Amazon warehouse worker (in the UK) over the
               | holidays. They said it's hard work but they got various
               | perks, decent pay, they didn't even want to be a
               | supervisor which they had been offered, and liked it.
               | 
               | Would I want the job? Hell no. But this is an intelligent
               | person who is doing this because they have no other
               | option.
        
               | kevin_thibedeau wrote:
               | The UK has social safety nets that Americans don't get
               | when they have a job. Amazon isn't allowed to play the
               | same game in countries with worker protections.
        
               | ghaff wrote:
               | I can certainly believe there are issues for Amazon
               | workers in the US that don't apply in the UK to the same
               | degree. Although Amazon does seem to have various heath
               | insurance plans for US workers. I assume workers have to
               | pay some amount in as is the case with most jobs,
               | including white collar ones, in the US.
        
             | tootie wrote:
             | Didn't Walmart get caught locking people inside their
             | facilities?
             | 
             | https://www.nbcnews.com/id/wbna4146540
        
           | jakjak123 wrote:
           | Amazon does not have a physical whip yet, but they do have a
           | mental whip of tracking every minute of every day you do at
           | work, and ranking you among all the others working there.
        
         | keiferski wrote:
         | Those kinds of people don't shop at Walmart because they
         | perceive themselves as being in a higher social class than the
         | "people of Walmart." I don't think they care much about the
         | compensation of the employees.
        
           | cxr wrote:
           | Right. The key word in my comment was "ostensibly".
        
         | skhunted wrote:
         | I care about worker's rights but there is only so much I can
         | do. The Clinton administration refused to include a requirement
         | on standards of employment in order to benefit from free trade
         | with the U.S. Walmart did a lot of harm while it grew to its
         | current size. That memory is still fresh. The damage caused by
         | Amazon is more opaque but it is a loathsome company.
         | 
         | What is needed are standards of employment that all companies
         | should be forced to adhere to.
        
         | xanderlewis wrote:
         | The notion of luxury beliefs isn't just about plain old
         | hypocrisy (though of course there's plenty of that) -- I think
         | it's more about beliefs one can _only_ hold because of one's
         | position of privilege.
         | 
         | The usual example given is 'defund the police'. If you're rich
         | enough to hire your own security or otherwise live safely in a
         | world without police, you can advocate for this and win social
         | points for doing so. Meanwhile, the actual consequences of such
         | an idea, were it to be implemented, would be catastrophic.
         | Unlimited immigration/open borders is another one: if you're
         | relatively poor, your ability to make a living (among other
         | things) is potentially threatened by this. If you're rich, you
         | needn't worry. You can live in your fancy neighbourhood far
         | detached from the consequences of such policies, so you can
         | freely hold such positions and even frown upon those who don't.
         | 
         | Luxury beliefs are just like tangible luxuries [*] -- you have
         | them not because you want them or really believe in them, but
         | because they signal to others that you're of a certain class.
         | Poor people can't have them, so they're desirable as status
         | indicators.
         | 
         | [*] OK -- some 'luxuries' are worth it and aren't just for
         | showing off. But I'm talking about the ones that are.
        
           | ScoobleDoodle wrote:
           | "Defund the police" doesn't mean what you think it means
           | here.
           | 
           | It doesn't mean removing all funds from the police as the
           | name implies. It actually means reallocating funds from the
           | police to trained professionals for appropriate situations.
           | Like having a government division that hires psychologist /
           | mental health workers to respond to mental wellness checks.
           | Having mental health / homelessness services workers respond
           | to calls about vagrants. So instead of getting a boot to the
           | teeth or death as seen in the news, those at risk groups and
           | people get the directed help and support they need.
           | 
           | https://en.wikipedia.org/wiki/Defund_the_police
        
             | rpjt wrote:
             | I'm not sure this distinction matters much to most people,
             | though. People hear "defund the police" and draw their own
             | conclusions as to what that means, and it's not a far leap
             | to go from "defund the police" to "welp, guess they want to
             | tie the hands of cops and take away all of their funding so
             | they can't do their jobs"
        
               | Eddy_Viscosity2 wrote:
               | I think what your saying is that people are drawing the
               | wrong conclusion when they hear 'defund the police'. But,
               | if they knew what was really meant they may actually
               | support it. So the distinction actually matters a lot.
               | 
               | Like if they heard that it meant sending trained mental
               | health professionals to deal with a mental health crisis
               | called into 911 instead of just sending some cops who may
               | very well just shoot them, that might change their minds
               | about it.
        
             | xanderlewis wrote:
             | Fair enough. I've heard 'abolish the police' and 'all cops
             | are bastards' (whatever that means) too, so such a
             | sentiment definitely exists. Either way, those usually
             | espousing such things don't seem to have much of a concrete
             | plan in mind (and don't have to, because offering concrete
             | solutions isn't the purpose of such rhetoric).
             | 
             | > According to the New York Times, the slogan and movement
             | failed to result in any meaningful policy change. This was
             | attributed to the slogan having no clear definition of its
             | goals.
             | 
             | (from the Wikipedia page you linked to)
        
             | VirusNewbie wrote:
             | This is certainly not the case for the NPO BLM groups that
             | clarified they want to _abolish the police_.
        
             | eszed wrote:
             | That's a thoroughly sensible proposition. However, right
             | there in the Wikipedia article you post:
             | 
             | > some ["Defund the Police" advocates] seek modest
             | reductions, while others argue for full divestment as a
             | step toward the abolition of contemporary police services.
             | 
             | "Defund the Police" is my nomination for the worst
             | political slogan of the 21st century (so far). It contains
             | such multitudes that it's become a Rorschach test for both
             | users and hearers. I wish the reformers (like yourself -
             | whom I fully support) and the abolitionists (I think
             | they're _wack jobs_ ) would decide to march under different
             | banners.
        
       | rqtwteye wrote:
       | What a surprise! I always thought that mega-corps like amazon,
       | Apple, Walmart or Microsoft got to their level because they were
       | gentle and friendly towards employees, customers and suppliers.
       | Maybe soon we will find out that most billionaires aren't nice
       | when you have to deal with them.
        
         | euroderf wrote:
         | Maybe "nothing new under the sun" and/or "nothing to see here"
         | are not sensible reactions to the article.
        
       | acl777 wrote:
       | https://archive.ph/vTO3D
        
       | Nevermark wrote:
       | Traditional business value comes from some innovation, and a lot
       | of execution/logistics delivering the innovation. Logistics for
       | product companies being manufacturing, and sales/delivery.
       | 
       | But now most small product companies have outsourced production
       | on the "input" side, and outsourced logistics on the "output"
       | side.
       | 
       | Which leaves harsher more direct competition for their innovation
       | core, since that is a fraction of the original business and more
       | easily copied.
       | 
       | High componentization of any economy ratches up competitive
       | pressure exponentially, whether it was Amazon, or a collection of
       | service companies offloading the downstream logistics.
       | 
       | But since Amazon is protecting itself by doing the opposite, by
       | de-componentizing, i.e. preferencing and tying different sales
       | and delivery logistics services to each other, that centralized
       | leverage is going to squeeze small product companies even more.
       | 
       | Especially those that don't have a unique manufacturing process,
       | unique branding, or some other differentiating moat.
        
       | WalterBright wrote:
       | > Dana Mattioli reveals how the company systematically stifles
       | criticism, squeezes out competitors, and even pits its own
       | employees against one another. "People tend not to last," she
       | says, "because it's very aggressive and it can be bruising."
       | 
       | Wow! Wait till she does an investigation of professional sports!
        
         | aidenn0 wrote:
         | > Wow! Wait till she does an investigation of professional
         | sports!
         | 
         | At least those are union jobs.
        
       | jimt1234 wrote:
       | How does Amazon operate in countries outside the US. Does Amazon
       | apply the same anti-competitive business practices? Is the
       | workplace equally cut-throat? Just curious.
        
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