Here we will explore some of the problems Amazon has faced. Amazon has been a global brand for over 20 years. Recently, they have faced many problems that have made the company stand out in bad ways and may change their business model in 2020. These issues include:
1) Amazon is now being investigated for potential antitrust violations by the Department of Justice
2) The online retail giant’s long-standing relationship with the United States Postal Service is under fire
3) Amazon has come under scrutiny from President Trump who wants to regulate its size
4) The company was recently called out on how it treats contract fulfillment workers and
5) there are more people than ever before questioning whether an algorithm could take away jobs.
All these concerns combined will likely lead to changes in their business model during 2020.
In the past year, Amazon has been under fire for a variety of issues including labor violations and anti-competitive practices. This blog post explores some of the most recent scandals and disputes in which Amazon is involved.
The article starts with an introduction to how many controversies have surrounded Amazon over the last few years, such as their treatment of workers overseas or their use of tax loopholes.
The article then discusses various new problems that have arisen this year–most notably, its purchase of Whole Foods and subsequent changes to pricing on food items sold through Prime Pantry and Prime Fresh; it’s lawsuit against Google for selling ads on YouTube videos that feature pirated content; its acquisition by JP Morgan Chase & Co., Citigroup Inc., and Berkshire Hathaway Inc.
With the rise of new technologies, Amazon has faced many issues in 2020. Many people are not happy with Amazon and have been vocal about their complaints on social media. For example, a lot of parents are complaining that they feel like they’re being watched by Alexa because it records everything it hears around the house when you use it for voice commands. Others say they think that there needs to be more oversight over how data is collected from consumers who use Kindle devices and other services such as Prime Video and Audible.
There are also those who believe that Amazon’s employees should unionize so that higher wages can be negotiated for them and health care coverage can be provided to all employees. The company has also come under fire by some activists for selling products
Problems Amazon has faced: History
If you didn’t know, Amazon is an American online retailer and technology company with its headquarters based in Seattle, Washington. Jeff Bezos founded the company on July 5, 1994. As an internet-based retailer company, Amazon sells different kinds of goods, including housewares, toys, electronics, books, and movies.
More History of Amazon
The history of Amazon dates back to 1994 when Bezos was working on Wall Street. Taking inspiration from the increasing internet revolution taking place around him, he decided to quit his job. He started an online bookstore, Amazon.com.The online store sold books in over 45 countries in just 30 days.
Considering the popularity of small set up, Jeff expanded its operation in a two-bedroom house and began developing software with few employees. Over time, the company got popular throughout the world, and now its estimated income during the third quarter of 2020 is reported as about $6.3billion.
Problems Amazon has faced: Amazon Worker Risks
When all businesses remained closed for almost 6-7 months throughout the pandemic, Amazon continued to expand its operation. The company’s increasing avarice to strengthen its operation during the pandemic stacked thousands of workers’ lives.
Recently Amazon hired almost 175000 new warfare workers to meet the increasing demands. But they overlooked their workers’ safety and failed to implement precautionary measures despite workers’ complaints.
After continuous complaints and no company response to ensure its workers’ protection and safety, Emily Cunningham and Maren Costa, Amazon workers, criticized the company on Twitter. Unfortunately, instead of improving their safety measures, Amazon fired them.
It’s time to stop glorifying Amazon
Problems Amazon has faced: Does Amazon evade taxes
Amazon has a long history of tax evasion. The company had been active in different European countries, including the UK, and denied its permanent settlement in these countries to avoid taxes.
In 2009, Amazon tried to play the same tricks but got into trouble when the Tokyo National Tax Agency caught the Amazon red-handed. The Japanese tax authority wared Amazon to pay $119 million in taxes for unreported income in Japan.
In 2012, Amazon generated more than £3.3 billion in sales but did not pay a single penny in tax. After investigating the company’s tax avoidance, it decided to pay corporation tax; unfortunately, Amazon once again found involved in tax evasion in 2017 when it paid only€16.5m on revenue of €21.6bn.
Amazon, run by Jeff Bezos, the world’s wealthiest person, is accused as the worst offender as the company has been “aggressively avoiding” tax over the past few decades. According to Fair Tax mark’s report, Amazon is dodging and delaying the tax by shifting revenue to low tax countries.
The report stated that regarding Amazon’s revenue ($960.5)and profit ($26.8)for this decade, its effective tax rate was 12.7%, while the firm paid just $3.4billion.
Problems Amazon has faced: Does Amazon hurt the Environment
The company is facing serious criticism from customers and its own workers for its role in climate change. Huge energy waste by its massive servers and cloud computing activities are causing a high carbon footprint. The sad thing is that Amazon threatens its workers who raise their voices against this environment decaying practice.
Around two decades ago, Amazon.com started with a vision of making buying and selling easier for the world’s people. However, as it evolved, the company didn’t learn that with success comes greater responsibilities. Unfortunately, today many bad stories belong to this big name.
Does Amazon collect and recycle its electronic waste?
Amazon is accused of improper handling of electron waste. According to MPs, the global giant is responsible for producing millions of tons of electronic waste every year, thrown away without proper disposal and recycling. Mostly this waste is dumped overseas, incinerated, and disposed of in landfills.
According to an Amazon spokesperson:
“Amazon is committed to minimizing waste and helping our customers to reuse, repair, and recycle their products, and provide a range of options that anyone can easily access through the Amazon Second Chance website.
Though company officials claim that they have taken taking firm steps to reduce electronic waste by recycling it, however, the reality is Amazon is not legally contributing to collecting, recycling, and repairing waste.
Does Amazon sell illegal items?
Apart from tax fudging, Amazon is continuously facing harsh criticism for marketing illegal items on amazon.co.uk. According to The Guardian’s 2015 report, the company has been disobeying rules by selling banned items such as pepper-spray guns, stun guns, and concealed cutting weapons.
These are only a few of the glaring problems Amazon is facing. Consumers need to learn so we can hopefully stop glorifying this company. Their massive profits and monopolistic leanings are doing great damage to the economy.
More importantly, with all of that said, their prices aren’t even that good. There used to be a time when buying goods on the internet was a lot cheaper. Amazon can now analyze consumers’ shopping patterns, rivals’ prices, inventory, profits, and a wide array of other factors every ten minutes to determine new prices for its products. That way, they can ensure their prices are always aggressive and can juice out more value.