Posted on 10/01/2022 11:20:12 AM PDT by FarCenter
Amazon, which booked net losses in Q1 and Q2 totaling nearly $6 billion and whose shares are down 38% from their high in July last year, is undertaking large-scale efforts to cut costs – including commercial real estate costs. It is closing or cancelling 44 warehouses across the US; it’s halting construction on six office towers, and won’t start construction on a seventh. And now it emerges that it plans to close four of its five call centers in the US and switch those customer service representatives to working from home.
Amazon currently operates five call centers in the US. Kennewick, WA; Lexington, KY; Phoenix, AZ; Huntington, WV; and Houston, TX. It plans to close four of them. Either the Houston or the Huntington facility will likely remain open, according to Bloomberg, citing a source.
Amazon confirmed to Bloomberg that the call center work will be shifted to work from home. Even before the pandemic, it already allowed some call center workers to work from home.
“We’re offering additional members of our customer service team the increased flexibility that comes with working virtually,” an Amazon spokesman told Bloomberg. “We’re working with employees to make sure their transition is seamless while continuing to prioritize best-in-class support for customers.”
For many call center workers, not having to commute is a big benefit, and this should make recruitment easier and reduce turnover, in an economy where hiring and employee turnover are tough challenges for employers. In addition, Amazon can recruit call center workers around the US – essentially anywhere with a good internet connection – and is no longer tied to particular cities.
By cutting out four of its five call centers, Amazon will save on the costs of running them, including administrative and real estate costs.
(Excerpt) Read more at wolfstreet.com ...
>>For a long time, Amazon did have a leg up on the other online retailers. But most everybody else has caught up with regard to the logistics of online retail.
I have my doubts about their third party retailing business. I’d bet they lose money on 80% of their third party retailers, since the overhead of setting up the relationship and stocking a lot of low volume merchandise likely takes a lot of both call center time and warehouse space.
Odds are that the new management will find a way to terminate third parties who are either hard to deal with or have low volume products.
Years ago, people would go to Best Buy to check out the new high tech stuff, then buy it on Amazon....Karma is a bit*h
Looking forward to an amazon stock crash just like facebook’s did.
Bezos hires state-side customer support? Must not be for me. I’ve never gotten anything but “Mai name eez Johnny.”
A lot of Amazon's offerings are drop-ship; actually sent to the customer from the 3rd party retailer, not Amazon.
The problem is more likely that Amazon has already copied so many viable product ideas for their own brands that there are few left out there to steal ideas from. Since Amazon had the data on the buyers, they would know if it was worth it.
The drop-ship program might have contributed to Amazon's problems. If a firm can drop-ship, why not deal directly with the customers, once they've drop-shipped long enough to establish the relationships.
Amazon “shares are down 38%.” Disney shares were down 45% on June 21, 2022. The laws of physics and economics are always working. Smart leaders trust the Lord and depend on American patriots.
There is a lot of work people can do from home. There is no longer a “need” to be herded like cattle into cube farms all day.
Ouch!
I will be losing almost 1.5 seconds of sleep tonight over this...
As long as the packages keep arriving, NBD...
They’re closing Knoxville TN before it even opens. They spent a bundle building it though.
I know that from experience at my own company. The cost difference between shipping UPS Ground and UPS 2 Day Air is very significant. So much so that when our clients ask for overnight or 2 day, we ask for their UPS or FEDEX account numbers so that they can pay the freight.
Even though Amazon is now doing a lot of their own delivery, they've got to be spending a fortune on 2 day shipping in order to meet their PRIME obligation. Most of what people order is just not that important to get in two days. But they (Amazon) painted themselves into a corner with this 2-Day PRIME promise.
Leni
Dang right! When some corporate drone sez to me, "Bill, what should we do?" I tell 'em "DIE! DIE! DIE!!"
I’ve figured out the problem of receiving “new” products that are used/RMed/refurbished..
I think the 3rd worlders that work in the warehouses are swapping the new products with the used so that they have the new products.
It’s happened to me several times.
(I am always able to receive a refund.. but it still happens)
I also contact them using the chat feature. The few times that I had attempted to speak to support, I had no idea what they were saying (red-dot Indians).
IF only they were “feather in the headband” Indians. 🤣
All my social contact is here on FR! Laz loves me so i’ve got that going as a positive. Now if only the Dalai Lama would return my calls.
that is exactly right
nobody should be building
more office space
You're correct!
It's a profitable technique to "cut out" the middleman.
I love you.
Rd later.
Many companies shifting fixed costs to employees.
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