High Expectations, Significant increase in demand, Amazon faces new role in virus crisis.


Washington, 18 March 2020, TON: In a time when many are confined to their homes, consumers will have high expectations that Amazon will come though to meet their needs and demands.

Amazon, which has expanded its food operations with the acquisition of the Whole Foods grocery chain, has shifted its priorities in recent days to help people get needed household basics and medical supplies.

"There's enormous pressure on Amazon to meet these increased expectations," said Technalysis Research analyst Bob O'Donnell.

"Fairly or unfairly, people will expect that Amazon will always have some things, like toilet paper. If not, they're going to catch more grief than if a local grocery store is out."

Amazon this week boosted pay and set out to hire 100,000 more US workers to add to its global workforce of some 800,000 to cope with a surge in online shopping prompted by coronavirus fears.

The Seattle-based firm expects to spend more than $350 million to bump up hourly pay in the North America and Europe for employees and partners in distribution centers, transportation operations and stores.

"Getting a priority item to your doorstep is vital as communities practice social-distancing, particularly for the elderly and others with underlying health issues," senior vice president of worldwide operations Dave Clark said in a blog post.

"We are seeing a significant increase in demand, which means our labor needs are unprecedented for this time of year."

Amazon has been working to thwart price-gouging of sought-after products as it ramps up efforts to meet demands in the coronavirus age
Amazon accounts for some 37 percent of US e-commerce sales, according to the research firm eMarketer, and is the largest cloud computing firm which powers online operations around the world, including for firms like rival streaming platform Netflix.

If Amazon becomes a salvation for people unable or afraid to go out to shops due to coronavirus risk, it could win new users and become a more entrenched habit, and potentially boost its image at a time when Big Tech has come under fire.

Amazon this week said it was reorganizing its operations, slowing down some deliveries to help people with more pressing needs.

"We are seeing increased online shopping and as a result some products such as household staples and medical supplies are out of stock," Amazon said.

"With this in mind, we are temporarily prioritizing household staples, medical supplies and other high-demand products coming into our fulfillment centers so we can more quickly receive, restock and ship these products to customers."

Amazon has also been forced into policing the platform to thwart price-gouging efforts by vendors who stockpiled coveted supplies like breathing masks and hand sanitizers.

They are a serious liability that could cripple Amazon."

Amazon has also faced criticism for keeping warehouses open in Europe even after cases of COVID-19 have been detected among workers.

A side effect of the coronavirus could be accelerated development of drone delivery mechanisms already being tested in some locations, according to Enderle.

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