Amazon recently put forth a rather startling announcement. The online giant has stated a greater emphasis is going to be placed on advertisement in the near future. What makes this assessment so startling? Those who do not follow in business endeavors of Amazon may have been under the impression that the company was heavily invested in advertising ventures already. Granted, a decent investment in advertising is consistently expended each and every year. Advertisements, however, never been the major priority with Amazon as most would assume.
A few changes are on the horizon with Amazon. For one, the company is slated to institute more “targeted recommendations” for its consumers. The purpose of doing so would be to direct buyers towards merchandise they would be most interested in purchasing. Amazon obviously would gain improved sales if this type of marketing strategy was effectively instituted.
Highly interesting is the concept of Amazon Video Ads (AVA). As one would rightfully assume, these ads are video commercials published within the maze of Amazon’s website. The presence of a strong promotional video can tremendously assist in moving sales on the site. Curiously, Amazon did not exactly hype the arrival of the video ads. Maybe the company was not entirely sold the notion that video advertisements would be welcomed by those browsing the colossal website. Hard to see why the advertisements would not work or why Amazon would downplay their presence.
Amazon seems to be a company that is comfortable in the notion that the names sells itself. So many millions of people purchase from Amazon that heavy investments in advertising have not been a priority. All that seems to be changing. What is motivating the change remains to be seen. Maybe the drastic decline of the traditional retail sector may herald Amazon accessing new customers. A new marketing approach may be required to grab these customers.
The Entrepreneur reports that an Amazon employee jumped off the company’s Seattle headquarters two weeks ago. The police described it as a suicide attempt. While the man fortunately survived the 12-story jump, the incident left a lot of employees shaken and in shock.
After the suicide attempt, many Amazon employees took to the chat app, Blind, to vent their feelings. Blind is an anonymous app that allows people to discuss companies or businesses anonymously. More than 200 people used Blind to post their frustrations over Amazon’s handling of the suicide attempt. Many were looking to blame Amazon’s treatment of its employees. Some of the worker frustrations included:
Lack of company email.An overly competitive environment.Blame was pointed at CEO Jeff BezosCalls for an Amazon union.
- Lack of company email. Amazon didn’t notify workers about the incident, which upset employees who wanted at the very least acknowledgement of the incident.
- An overly competitive environment. Amazon has PIP in place, a system that pushes for performance improvement in the work space. The man who attempted suicide was placed in PIP, possibly contributing to a stressful work life.
- Blame was pointed at CEO Jeff Bezos for not doing more for his employees.
- Calls for an Amazon union.
While over 200 employees used to app to discuss Amazon’s work environment, not everyone was there to blame Amazon. So far, Amazon has yet to comment on the incident.
If you or someone you know are having suicidal thoughts, call the U.S. National Suicide Prevention Lifeline at 800-273-8255.
Amazon has been the leading corporate giant when it comes to shopping online, but it seems Walmart is looking to overtake this position. According to the Business Insider, Walmart is on the verge of purchasing Jet.com, a move that is sure to challenge Amazon’s arena in e-commerce.
Jet.com is an online retailer founded by Nate Faust and Marc Lore. Launched in 2015, Jet hopes to provide a competitive alternative to Amazon. Investors have poured in at least $500 million into Jet. The new retailer plans to compete with Amazon by offering lower prices and free shipping for orders over a certain price. Recently Jet distanced itself from its subscription-based service in order to focus on individual transactions.
Walmart wants to purchase Jet in order to meet the needs of a customer base that is increasingly using e-commerce. Even though Walmart already provides online shopping for customers, it is vastly behind Amazon when it comes to fast and free shipping. However, one advantage that Walmart will have over Amazon is distribution centers. Walmart already has stores located all over the United States. With the help of Jet.com, Walmart hopes to turn its online retail it a short, easy and efficient online business.
According to Conlumino CEO Neil Saunders, “It [Walmart] is somewhat jumbled and unfocused which makes it hard for the company to compete with the likes of Amazon… Jet remedies this and would give Walmart a much more focused and powerful offering and platform with which to compete against Amazon.”
Walmart would love to become the number one e-commerce website, however, they have a long way to go to catch up to Amazon. In 2015, Amazon sold $107 billion worth of goods, while Walmart’s online sales were only $13.7 billion. Despite having a well-known name, a reputation as a place to go for savings and a long-time e-commerce presence, consumers just don’t like shopping at Walmart.com. Perhaps consumers don’t like Walmart’s spotty online inventory or its search feature that never gets it right, or perhaps few people know about Walmart’s free shipping program that is similar to Amazon Prime.
Walmart is considering buying Jet.com, a fairly new e-commerce website that has a robust household goods department. Many people go to Walmart’s stores to buy groceries, cleaning products and pet food, yet they turn to Amazon or Jet.com when they buy these items online and Walmart wants to change this. Jet sees several hundred thousand new customers each month, who are drawn to the low prices and free shipping on all orders over $35. Unlike Walmart and Amazon, there’s no paid program to join to get free shipping with Jet.com, although the company initially had such a program, however, they quickly discarded it.
While Jet.com isn’t making a profit yet, they have an excellent e-commerce platform, which is all Walmart really needs, since they already have a massive distribution system in place.