Another Trip up The Amazon …….

Yep, second time.

Those who know me will think ‘…who does he think he is, Bear Grylls? and most readers who don’t know me probably couldn’t give a toss, or I am making it up.

Well, my first time (Post May 2021) was in the Amazon, all dancing, all singing Hi Tec, no checkout store in East London. Very impressive but now closed down. Clearly it may have worked but was not making any money.

My second was a much bigger adventure. I had a tour of an Amazon warehouse.

I will have to start with the positives. Albeit not a difficult task as there were many pleasant surprises in store.

For those who have seen their social media posts, they have, for some time, been offering free tours at specific branches.

The first and probably the one factor that had the most impact on me was the quality of the Amazon Colleagues that led us around on the tour. The young female (early twenties- and yes it is relevant ), who was the spokesperson, had only worked there for four months. Yet she spoke, unscripted, without hesitation, and in an enthusiastic and entertaining manner. The only time she deferred to the two older women ( who had worked at this site since it first opened 10 years ago) to query something she did not know (which could only been three max four times) during the 90 minutes of the tour.

Part of the talk was about working for Amazon. Often being described in the past to being paid the bare minimum and under prison camp style management, it would either be much has changed or it was never thus.

Good starting wage rate, very flexible working options, private health care (including dentistry), excellent training possibilities, free Prime membership, 5 on-site canteens plus a video games room, plus continuos work place rotations (you could be your guide leader one month and then for the next month working in a different operational job within the site) in order that boredom does not set in and the development of diffrent skills within the business are only part of the package. I think what is on offer would put many major UK companies to shame. Proof (or at very least evidence) of the pudding was the two colleagues who had worked there for 10 years appeared very happy in their work

Technically, I was less surprised as I expected it to be high-tech and super efficient. And it was. What I didn’t realise was that nothing was shipped to the consumer directly; it all went to a hub and was shipped from there. Another extraordinary feature is that if a customer says they ordered 5 of an item and there are only 2 in this warehouse, then those 2 would be shipped to another warehouse that could complete their order, assuming they did not have the 5.

Robotics were, of course, prevalent, yet in some instances, they had been removed where human intervention was found to be more efficient. It is nice to know that occassionally us mere mortals still have some uses. I don’t think for one moment it is the company being ultra altruistic about the working population, especially as they are in the process of laying off 16,000 globally following 14,000 in October. Primary causation being AI (and yes the top cartoon image was AI-produced but I would not have employed anyone to create such an image. So I was not nicking anyone’s job.

The negatives are perhaps less well known to the consumer (apart from the paragraph above) as they relate more towards the Market Place Sellers. These are some the ‘feel good ‘ Amazon Stories (from Amazon, of course)…

But for every success story, there is a bucketload of failures. Which is, of course, the same with any business opportunity. In general, they don’t treat their sellers especially well. They are very inflexible, and there is no internal communication, even between Amazon colleagues. I am aware of 2 sellers who very recently had tens of thousands of products in Amazon warehouse blocked for several days during a critical seasonal period, and Amazon could not tell them why except ‘it was some sort of error’.

They constantly pursue genuine regular sellers of long standing with issues concerning conformity, descriptions, brand ownership issues, and at the same time ignoring flagrant breaches from random sellers in the depths of the likes of China. For a long time some sellers were using false VAT numbers, although that seems to have been sorted (but not entirely). As to why it took so long is anybody’s guess, as I have thought a very simple VAT number checker, within their software, would have sorted that overnight, instead of taking four to five years. They vigorously pursue bona fide sellers fro issues of product conformity yet ignore distant sellers flogging dubious prodcut from are from far flung sources which are quite clearly imitations of genuine product.

Yet they remain, virtually, unchallenged. There is, of course, Temu and Shein and there is a new boy, watch out for jd.com (joybuy.com). They are, for the most part, just nibbling at edges.

I think the reason Amazon remains head and shoulders above the rest is that they have nearly thirty years of traction and ensuring that the customer comes first. Until a serious competitor builds that same relationship with the consumer, Amazon will remain King of the Jungle. But nothing is forever.

Whatever, your involvement with Amazon, treat yourself to the Trip (if not a lifetime ) of a Daytime

AI… Retail Panacea or just Aye Aye Pigs may Fly?

Artificial Intelligence within the retail environment is nothing new . Amazon has been using it since the early 2000’s with its recommendation engine, You bought this so you maybe be interested in this .

Prior to that (1950’s)it was called Human Intelligence. In other words, you walked into the shop and the shop owner would say ….

A somewhat more personal approach, but is it enough anymore?

Clearly for Online retailers it is not even an option. Even it were, that is not really what the future of AI is about. By definition Artificial Learning is created by machine learning. Within Retail it can cover logistics, stock control, analytics, costings, consumer behaviour, anti fraud and that’s just the start.

I have my pet hates:

  • Bots. Even with major organisations such as Banks, telelcommuciations companies, big Retailers, they are crap. Invariably, they ask you a lot of questions, many of which are irrelevant and then they say we cant answer that, we will pass you over to an operator. Then the operator asks you exactly the same questions. What benefit is that to the consumer apart from annoying the pants off them?
  • Website search functions. They are next to useless. Unless you know exactly what you are searching for, they will say no result or give you a list of products which bear no resemblance whatsoever, to your search. This is despite that there are supposed to be some very sophisticated AI tools available that eliminate those issues. One such tool is being used by a major outdoor and sports equipment. I tried it out and it returned over 6,700 products, which was sort of impressive, but amongst the first ten items, six had nothing to do with my search.

We must not use these ‘teething issues’ to distract from AI is here to stay and it has some extraordinary potential even for the smallest business.

Whatever your business, there are AI benefits that should not be ignored. Perhaps the biggest simple explanation is that there are resources a small independent business can access at a cost that previously would have been prohibitive and now are more than affordable.

So what are these extraordinary benefits ….

The list is endless. This is just a very general idea of some of the possibilities to prompt ( human prompt that is ) for the independent business to take the time to look .

It would be very easy to get into detail (I mean very low-level detail), as I don’t think it would be of much help. The point is to look at it. It is not going away, and just as important is that your competitors will be (looking that is).Most of us (I think) will have used it to play with or write a letter to get off a parking fine. Maybe plan a holiday.

Holidays are a very good example of how it is starting to happen in a useful and immediate manner. Apps are being developed whereby instead of trawling through various travel websites, going through drop-down menus all your preferences ( in some cases not being asked ALL) and still not finding excatly what you looking for. By typing in all your requirements, needs, and wishes, locations, best time to go , budget etc into one place, and getting a more personalized response. Some will say Google does the same thing. Not really, but even there you now get an AI response. The same is happening with House buying.

Let it not be said all is perfect. Far from it. From my own personal experience, AI can throw up some outrageous results that bear no resemblance to what you are asking.

AI prompts to get started 

There are loads of concerns about AI. Least of all loss of jobs. But there was with the printing press, spinning jenny, steam engines, combustion engines, telephones, radios, televisions, computers, fax machines, mobile phones ……..Society adapts and develops. As a business, we all have to do the same. There will be some pain. As most medics will tell you, the best way to avoid pain is to get ahead of it.

There is no profit to be gained from either fighting it or ignoring it. Embrace while you can.