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Tuesday, September 20, 2016

If a Business Treats Their Employees Like Crap, They Probably Do So to Their Customers

Case in point, Amazon, whose searches serve up their own products when better and cheaper alternatives are available:

One day recently, we visited Amazon’s website in search of the best deal on Loctite super glue, the essential home repair tool for fixing everything from broken eyeglass frames to shattered ceramics.

In an instant, Amazon’s software sifted through dozens of combinations of price and shipping, some of which were cheaper than what one might find at a local store. TheHardwareCity.com, an online retailer from Farmers Branch, Texas, with a 95 percent customer satisfaction rating, was selling Loctite for $6.75 with free shipping. Fat Boy Tools of Massillon, Ohio, a competitor with a similar customer rating was nearly as cheap: $7.27 with free shipping.

The computer program brushed aside those offers, instead selecting the vial of glue sold by Amazon itself for slightly more, $7.80. This seemed like a plausible choice until another click of the mouse revealed shipping costs of $6.51. That brought the total cost, before taxes, to $14.31, or nearly double the price Amazon had listed on the initial page.

What kind of sophisticated shopping algorithm steers customers to a product that costs so much more than seemingly comparable alternatives?

One that substantially favors Amazon and sellers it charges for services, an examination by ProPublica found.

Amazon often says it seeks to be “Earth’s most customer-centric company.” Jeffrey P. Bezos, its founder and CEO, has been known to put an empty chair in meetings to remind employees of the need to focus on the customer. But in fact, the company appears to be using its market power and proprietary algorithm to advantage itself at the expense of sellers and many customers.

………

We looked at 250 frequently purchased products over several weeks to see which ones were selected for the most prominent placement on Amazon’s virtual shelves — the so-called “buy box” that pops up first as a suggested purchase. About three-quarters of the time, Amazon placed its own products and those of companies that pay for its services in that position even when there were substantially cheaper offers available from others.
There is a difference between expecting a lot from your employees, and treating them like crap.

If a company does the latter, they will treat the customer like sh%$ as well.

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