Connect with us

Business News

Amazon’s insanely low prices have piqued the interest of the FTC

(BUSINESS NEWS) The FTC has decided to look into Amazon’s insanely low prices as a potentially unethical practice. Yikes!

Published

on

prices amazon delivery refund kid

Bargain hunters

The power of a bargain is an alluring thing to consumers. Many times, people can be compelled to purchase for a number of reasons – fear of missing out, competition, whatever. There is a good bit of psychology behind that.

bar
Powerful price comparisons where we feel we are saving 30-60% percent can be very compelling (PS: the entire psychology behind Groupon).

Amazon in the cross hairs

Creative price points indicate opportunities for businesses to possibly engage in unethical practice. FTC regulations require businesses be “up-front” with customers, and price deception can be a way to influence consumer decisions.

In 2013, retailer Kohl’s was accused by a retailer about marking up prices that may make bargains seem questionable, giving prices a more dramatic difference.

Consumer Watchdog recently sent a letter to the FTC encouraging them to review the advertising strategies of Amazon during the review of the merger to purchase grocer Whole Foods for 13.7 billion.

Consumer Watchdog alleges that a great deal of sales were never actually sold at the original price at all. This would mean a product mentioned at a price point of 200, but listed as 40% off at 120, may have never been sold at all at 200 when compared to other retailers.

Of the over 1000 products they reviewed, they showed that just under half of their products had completive pricing listed, 61% of those had a higher completive price listed as to what was listed 90 days before.

Clients on the hook

This is problematic for consumers, many of whom do not have the time to validate price differences across online and brick-and-mortar retailers, or who are not tracking an item over time. (Also relevant: Amazon has been removing reference prices for some products.) The results of that probe are not yet available.

The verdict is still out on what this means for Amazon, but the company has expressed that it feels the FTC probe is a bit misleading: they remain committed to reporting accurate pricing.

This may be bad timing, given the review of Amazon’s merger and the likelihood that the same auditors are going to be reviewing this claim and the deal. Given that Whole Foods had some challenges with price gouging during a NYC probe in 2015, and a case that is moving towards appeals court, it is not clear what this will mean for the merger or for consumers.

Due dilligence

Price points continue to be a major part of consumer purchasing decisions, so retailers and consumers alike should be checking to ensure they are getting the best bargain. Amazon is a big marketplace, and continues to be strong performer.

The outcomes of this case will have impacts on how amazon reports its pricing, and may change the way we decide to buy things on our prime accounts – let’s see if that FTC probe delivers anything worth considering.

#Amazon

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!

Kam has a Master's degree in Industrial/Organizational Psychology, and is an HR professional. Obsessed with food, but writing about virtually anything, he has a passion for LGBT issues, business, technology, and cats.

Business News

The sad truths you missed about the US Women’s Soccer Team lawsuit

(NEWS) The US Women’s Soccer team dominated headlines by suing for equal pay, but there was so much more to the lawsuit that could have a ripple effect in the business world.

Published

on

womens soccer lawsuit

Recently, on International Women’s Day, the United States Women’s Soccer Team (USWNT) filed a lawsuit against the US Soccer Federation. The timing of the suit is not only a sign of the team continuing their decades long fight against the organization (only three months before they are set to defend their World Cup title in France), but a recognition of the symbol that they have become in the larger battle that women and other minorities are waging in order to be given the same resources as the men leading in their fields.

It should go without saying that the women’s soccer team is unparalleled in its athletic success: over the past twenty years they have won three World Cup titles and four Olympic gold medals. These players, as ESPN acknowledges, are among the most accomplished and best known women athletes in the world.

Their counterpart, the Men’s National Soccer Team, leaves much to be desired (they failed to qualify for last year’s World Cup, for example) yet they consistently receive much more support from the US Soccer Federation.

Although the pay disparity between the USWNT and the male soccer team is certainly stark, the “gains” that the women athletes are fighting for go beyond monetary compensation.

According to Mashable, “This [suit] includes how women frequently play on a dangerous artificial surfaces when the men do not, fly commercial when the men travel by more convenient, comfortable charter flights, and the alleged allocation of fewer resources to promote women’s games compared to men’s.”

As if being the best players in your sport in the world and having to share hotel rooms after getting torn apart by the seams astroturf and receiving less-than-world-class medical care wouldn’t be infuriating enough, it’s truly this final point that highlights the glaring mistreatment of the USWNT.

Without support from the US Soccer Federation, not only in the form of payment but in promotion of their games and general good-will toward their players, the USWNT will not be able to grow their following so that they can establish a consistent revenue near what the men’s team attracts. This “lack” of revenue continues to create the chicken/egg excuse that the Federation has for not propping up the USWNT like they deserve.

It’s simply the opposite of “sportsmanship” for the US Soccer Federation to use these players’ love of playing the game (that, again, they are the best in the world at) and their country as a way to gaslight them into playing for less.

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!

Continue Reading

Business News

Think about automating tasks instead of replacing workers

(BUSINESS) Automation is great, unless you obsess over it and try to cut down on payroll – there’s a smarter approach that successful businesses take.

Published

on

automating tasks not people

The concept of automating your workflow is a tempting one — especially as payroll continues to be one of the evergreen highest costs of business. However, in contemplating how to streamline your workflow, you may do better to step back from the idea of “replacing workers” and instead think about you can optimize your existing employees by strategically tweaking their workflow.

As Ravin Jesuthasan and John Boudreau write in The Harvard Business Review, if the goal of automating is to ensure that your company is operating at its most cost effective and efficient levels, then chances are you’d still need knowledgeable employees to help you scale and capitalize.

Where automation can truly help your business is by transforming the ability of your organization to focus on the tasks that truly require a human touch or deep knowledge. For example, automation will not help your employees perform complex, interactive, or creative work like collaborating with clients to come up with solutions or designs.

However, it can help the process of brainstorming or co-designing these solutions easier by replacing some of the mechanical tasks that aid this high-level workflow.

For example, it may be helpful to automate basic research tasks for your designers. If your designers must create a client profile to help them launch their projects — basic information must surely exist at some other point in the process before this point. Maybe your firm has an intake form or contracts where a basic description of the goal of the contracted service has been created. By automating the sharing of that data between departments, perhaps in a content management system, you’d be able to free up time that the designers might spend on basic data collection so that they could instead use it for their more complex, empathetic work.

Jesuthasan and Boudreau offer up other advice for thinking about which specific tasks within your company’s workflow are the best candidates for automation.

Is a task simple? Routine? Does it require collaboration?

These kinds of inquiry are not only useful when thinking about your organizational processes, but they are good refreshers for thinking about the individual value and skills that your organization and its workers offer clients.

So instead of looking at how to cut down on payroll, consider automation as an option to improve the value you’re getting from your team, and freeing them from mind-numbing tasks that have nothing to do with their expertise. Win-win!

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!

Continue Reading

Business News

Megabrand, Amazon failing to support their working parent employees

(BUSINESS NEWS) Policies are changing at American companies to be up to par in supporting parents, but Amazon, despite being one of the most profitable companies in history, is not one of the evolving brands.

Published

on

working mothers amazon

Households in which both parents work is so much the norm in this country that we rarely ask new mothers if they’ll go back to work knowing it’s only a matter of when they’ll go back to work.

And once new mothers re-enter the workplace, the expectation of their time rarely changes to account for their new status as working mothers. Schedules change and so do childcare needs.

However, some progressive companies are changing their policies to accommodate their employees’ need for childcare, but Amazon isn’t one of them. Yet.

Dubbing themselves the Momazonians, a group of working mothers at Amazon is demanding that the online retail giant provide a back-up childcare benefit.

Back-up child care, for the uninitiated, is a perk that offers workers access to subsidized care for the times when school is closed, reliable childcare is temporarily unavailable, or in the event of sickness or emergency.

Why is this important? For starters, women who return to work shortly after giving birth are often left feeling unsupported and burdened by their choice to continue their careers instead of feeling empowered to enter into the next chapter or phase of their career.

Some companies believe that babies just aren’t good for business and once a woman makes the choice to expand her family, she’s often passed over for promotions or thought to no longer prioritize her career. Of course, these companies are wrong and that’s why it’s important for working mom’s to feel empowered to make their voices heard.

Will the Momazonians make any headway in getting the help they deserve? Time will tell.

They’ll be meeting in the next few weeks in an attempt to make a deal. However, whether or not Amazon complies with their demands, it’s worth thinking about for companies pondering parental policies in the future. As more and more millennials are marrying and having children later in life and thus further along in their careers, it would behoove companies to offer more flexible benefits to families. While it may seem cheaper to hire entry-level employees, in the long run, it’s more cost effective to hold onto experienced workers.

What’s more, while it’s incredibly difficult, if not impossible, to have it all, companies could make it easier to at least manage work-life balance better. When you offer mothers and fathers flex-time and work-from-home benefits, or even subsidized care, you are purchasing peace of mind and a peace-filled mind is a productive one.

Any woman who has gone back to work knows the hardest part of their day is dropping off their new little one in someone else’s care so why not make these transitions easier if it means holding on to experience? In the long term, it leads to employee retention. Children aren’t children forever and if they’re parents are offered support, those parents will probably perform better.

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!

Continue Reading
Advertisement

Our Great Partners

The
American Genius
news neatly in your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Emerging Stories

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!