The government’s revenue depends significantly on the tax receipts from citizens and corporations. So the revenue projection depends much on the assumptions of economic growth which seem too optimistic. It’s important to take into account the feasibility of these assumptions; which the media may not capture fully or an average citizen cares enough about
Today, I learned something new about Amazon return policies. As a Prime subscriber, I used to think that regardless of the reason behind the returns, they would always be free. I was wrong.
As I had to return some items that I didn’t like and there was no fault on Amazon or the manufacturers’ part, I was presented with esentiall two options: drive to UPS or Kohl’s store to drop off for free or pay to have the items picked up. Below are the screenshots when I choose the reason as “Bought by Mistake” or “No longer needed”
Had I chosen something that indicated the return wasn’t my fault, the options would be different
I guess it is sensible and smart of Amazon to implement this control. Otherwise, there would be abuses from customers (myself very likely, I have to admit) and the logistics costs would be even higher than what they are nowadays.
On a side note, the return experience I had at Kohl’s was very smooth. You can actually return Amazon items at any Kohl’s nationwide and all that it takes is QA code which can be stored and shown via your phone.
It made me think: how does this partnership benefit Amazon and Kohl’s? I am speculating here, but I guess this option makes sense financially for Amazon as they piggyback on the scale of Kohl’s logistics or business with shipping partners like USPS, UPS or FedEx. Instead of 100,000 items delivered a month, I imagine the deal with Amazon would bump the number up for Kohl’s. The increased volume can give them the leverage to negotiate a lower unite rate and have Amazon share the extra cost. From Amazon side, it would be cheaper to share with Kohl’s than to handle the entire costs alone.
Additionally, customers are given another option. I can imagine in some cases it would be more convenient to drop items off at Kohl’s stores than packaging and labeling the items.
On Kohl’s side, they might be banking on the fact that as customers have to come in their stores to return items, it will increase impulsive purchase in the stores.
A few days ago, Amazon reported its rare earnings miss, particularly on the bottom line. The primary reasons of the miss were their investments in AWS and especially their one-day delivery.
“We are ramping up to make our 25th holiday season the best ever for Prime customers — with millions of products available for free one-day delivery,” said Jeff Bezos, Amazon founder and CEO. “Customers love the transition of Prime from two days to one day — they’ve already ordered billions of items with free one-day delivery this year. It’s a big investment, and it’s the right long-term decision for customers. And although it’s counterintuitive, the fastest delivery speeds generate the least carbon emissions because these products ship from fulfillment centers very close to the customer — it simply becomes impractical to use air or long ground routes. Huge thanks to all the teams helping deliver for customers this holiday.”
A few days later, they announced the removal of groceries delivery fees for Prime members.
While their figures missed expectations, I think they are doing the right thing. Amazon has long been about long term investments and commitment to customer satisfaction. Two-day shipping wasn’t popular until it was introduced by Amazon. It was adopted by other retailers which wanted to compete. Now, Amazon upped their game and took it to another level with one-day shipping and free grocery shipping for Prime members. They are here to play and have the means to. With their AWS making up 62% of the whole company’s operating income and free cash flow up 54% YoY, Amazon has the luxury to make long-term investments to continuously being competitive.
I understand that in some cases, Amazon came across as a bully and deserved some of the backlash. Nonetheless, I think they earned their competitive position. Kobe Bryant spent hours in the gym and took thousands of shots to get to where he was in the record book. Amazon is willing to pay to stay competitive. The question is whether other companies respond accordingly and when.