Amazon Has a Trust Problem.
Can U.S. consumers trust Amazon.com? Jeff Bezos, the company’s CEO, said in his opening statement at a House antitrust hearing last week that “80% of Americans have a favorable impression of Amazon overall, according to leading independent polls.” Americans trust only their doctors and the military more than Amazon to “do the right thing,” he added. Given the public concerns over counterfeit and unsafe products sold by third-party sellers, however, Amazon needs to develop and execute a comprehensive plan to protect its consumers.
The U.S. Department of Agriculture, along with all 50 U.S. states, has warned Americans of unsolicited packages believed to be sent from China containing mysterious seeds—some of which were alleged to have been sent by Amazon’s foreign third-party sellers in an effort to boost their online sales and ratings. Amazon has said they don’t believe the mailings are part of such a campaign. But what is unfolding is another example of concerns about Amazon’s platform. It follows a related Wall Street Journal investigation from November that identified thousands of unsafe items sold by foreign third-party sellers on the site. Many of these products resulted in physical harm and even death. Some of those same dangerous products later resurfaced for sale even after being removed by the company.
Third-party sales have helped Amazon double its quarterly profit. They account for approximately 60% of physical sales, according to Bezos’s congressional testimony. Despite their importance, Amazon hasn’t disclosed the identity of its third-party sellers to U.S. buyers or provided a public channel like a website where consumers can find out more about them. The company has said it would ask these sellers to provide this information beginning next month, but it remains unclear how this information will be verified. Bezos also testified that he wasn’t sure if these third-party sellers are required to provide their names, addresses, or phone numbers to Amazon. Following an aggressive recruitment campaign of foreign sellers starting in 2013, many are now based in China. With millions of these companies who can sell and ship directly to consumers, Amazon appears to have lost control of its own site. Its message to U.S. consumers is loud and clear: Buy at your own risk.
Unfortunately, the information that is available about Amazon’s third-party listings has been subject to blatant manipulation. The company has never proved itself capable or effective in its fight against fake reviews and fake sales known as “brushing,” a tactic alleged to be behind those fake seeds. The company’s undisclosed algorithms have also given an “Amazon’s Choice” label to items with known safety issues.
To proactively address consumer safety and earn the public’s trust, Amazon should acknowledge the risk of allowing third-party sellers (especially foreign companies) to sell directly to consumers, and develop a plan to mitigate this risk. This should involve Amazon’s commitment to obtain and verify seller information and their products, including names and addresses of sellers and suppliers, dates of production, and quality certification. Amazon also needs to ensure the information is up-to-date for each product listing so that consumers can make informed purchasing decisions or even take legal action should safety incidents arise.
Instead of operating a single website, Amazon should create two separate websites: One to host products sourced and owned by Amazon with verified and proven quality records, and another to host products from third-party sellers. Amazon must also take product quality and safety seriously when managing products from third-party sellers. To earn the consumer’s trust, the company must establish and impose minimum quality assurance and take responsibility for product-safety issues, especially when Amazon is dominating the shopping experience, with more than 150 million Prime members in the U.S.
Americans rely on the “Mall of Amazon” during this pandemic. The company’s unprecedented power over consumers’ wallets means it is obliged to become a more trustworthy platform and ensure reliable supply chain information, sharing such information with consumers, and being accountable for consumer safety.
Despite all its means, power, and knowledge, Amazon hasn’t made a strong commitment in improving supply chain visibility and transparency. Bezos, the richest person on earth, is more than capable of fixing this problem. But will he take responsibility and do the right thing?
Tinglong Dai is an associate professor of operations management and business analytics at the Johns Hopkins University Carey Business School. Christopher S. Tang is a University Distinguished Professor and Edward W. Carter chair in business administration at the UCLA Anderson School of Management.
Longer contract and trust' - Owen Coyle explains why he chose to join Jamshedpur FC!
When Owen Coyle took charge of Chennaiyin FC last season they were languishing at the bottom half of the league table with just four points from the first six matches. But Coyle miraculously turned thing around at the club and led them to the final of the Indian Super League (ISL).
After a breathtaking season with the South Indian outfit, the former Irish international decided to move on and has now joined Jamshedpur FC as their new head coach.
The former Bolton Wanderers manager praised the infrastructure at Jamshedpur FC and said that the structure of the club is what prompted him to join the club as their manager.
“My very first match in India was at Jamshedpur against Jamshedpur FC. I was very impressed by the stadium, the pitch, training facilities and overall infrastructure. I loved everything. In the summer when I was a free agent, I had numerous offers both home and abroad but then came the offer from Jamshedpur. The vision that the officials of the club had was similar to mine. I understood what they wanted to achieve. The infrastructure of the club was something which appealed to me the most,” Coyle told Goal .
Mumbai City vs Chennaiyin
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The Scotland-born manager had no say in the Chennaiyin squad he led to the final, given that he was mid-season appointment after John Gregory left. This time around though, Coyle will have full authority and will get a chance to build the team on his own terms.
It must be noted that Jamshedpur already have David Grande and Aitor Monroy on their books and have key Indian players already in their roster. But Coyle will have the luxury of picking the rest of the foreign contingent as per his requirements and probably a few Indian players as well.
Coyle suggested that he is looking forward to the challenge.
“Every challenge is difficult. As a coach, you have to take the pressure. Like last year, if we had to qualify for the play-offs, we had to win all the games and that’s where we did so well. It was an entertaining and attacking team and also won games. It was pleasing on the eyes.
“Now again I have got an opportunity with another club. Recruitment will be important. We need to get the right players together and of course, take the challenge of playing against very good teams. We are looking forward to that. The nature of football is having pressure, that is the nature of the game and I relish that and looking forward to it."
Coyle is known for his belief in Indian players, trusting them with key roles as Jerry Lalrinzuala, Lallianzuala Chhangte and Edwin Vanspaul experienced at Chennaiyin. Jamshedpur also have some youngsters like Amarjit Singh, Aniket Jadhav and Mobashir Rahman and such. Coyle is certainly looking forward to working with them.
“I love working with every Indian player, you must have seen that in Chennaiyin. We have some exciting talent at Jamshedpur. My job is to bring the best out of them, to develop and grow them and let them be the best player they can possibly be,” claimed the former Chennaiyin FC boss.
Owen Coyle, Jamshedpur FC
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Jamshedpur FC have never made it to the play-offs since their inception in 2017. They had come close in the first two seasons but had to settle for the fifth position on both years. Last year was the worst season in the brief history of the club and as per Coyle, he wants to change that trend at the club.
“Every team aims to be among the top four teams and eventually become the champions. And Jamshedpur should be no different. So I see that as a challenge. I want to be the head coach that takes them to the play-offs. There were some really good coaches before me who couldn’t take them. It will be very exciting for me if I can be that coach who takes them all the way.”
One of the key reasons why Coyle parted ways with Chennaiyin was that the club did not want to offer him a long term contract. At Jamshedpur, though, he signed a two-year deal and the coach himself suggested that longer contract gives coaches the security and time to build a team.
“Any coach will tell you that it is very important. They want to be a part of the club, they want to feel trusted and when a club and particularly a club with the pedigree of Jamshedpur shows that trust in you, you can only be impressed by that. From a coach’s perspective, they will also want to know that they have time. It takes time and hard work to build a team and when a coach gets that, it is a great confidence booster for them,” said the former Wigan Athletic coach.