Saturday, May 05, 2018

The United States of Amazon

It's easy to list the things that divide us. Political? There's the obvious delineator of party, be it Democrat or Republican, Libertarian or Socialist. Views? Well, there are those that consider themselves conservative or liberal, free market or protectionist. Social? Take your pick: guns, abortion, gay marriage. The list and lists go on and on.

There are softer areas as well, ones where views are equally intransigent though not as consequential. There are those that like pets, those that don't. Metallica fans as opposed to Taylor Swift lovers. Vegans vs meat eaters. (Though to be fair, unless it's for medical or religious reasons, that last category can be very fungible, especially if we're talking ribs.) 

Other than the broadest of conceptual ideas, like life, liberty and the pursuit of happiness, it's hard to find any area on which we all agree. Almost anything that brings some together drives others away. But there is an exception. The president may rail against it for the taxes he says they don't pay, or the advantage he says they take of the postal system. Both dis's are highly questionable, and likely driven by the underlying politics of the founder and his media holdings. Either way, it's hard to find a more unifying force in the country than Amazon. 

You'd be hard pressed to find a person who hasn't shopped them, or invited them into their home, or used their online services through an intermediary. Jeff Bezos, the founder and CEO, announced in his shareholder letter that Amazon Prime, it's premium service for fast deliveries coupled with a host of other "member benefits," now has more than 100 million members. If Primemetastan were a country, it would have more people than Germany, Vietnam, or Egypt. And yes, it would have 2-day mail delivery. 

So what does one do when more people than ever have asked to let you charge them just so you can buy stuff from them? (Sidebar: consider the upside-downness of that business model: I'm paying them to allow me to pay them. But I digress.) You raise the price, of course. The company announced this week that they are upping the cost of Prime membership 20 bucks to $119. Still, if you shop the site and use just some of the perks that come with it besides rapid and free delivery, you are likely more than making out. Or as RBC Capital Markets analyst Mark Mahaney wrote, "There are three great deals in America today -- the Happy Meal ($3.29), Netflix ($10.99), and Prime (even @ new price of $119 – up 5 Grande Lattes a year)." 

This week they also announced several new initiatives based on their take of consumer needs. Border walls may a matter of debate, but let's face it: the border security we all care about regardless of political affiliation is for our homes. And so using the company's smart products like Ring doorbells and the Echo coupled with its Cloud Cam, they will sell you a complete home security system including installation. No, Mexico won't pay for this either, but it should keep bad hombres out of your family room. 

As more people have asked for more products to be delivered there has been a commensurate increase in thefts of packages left by the back door or near the garage. So called "porch pirates" have become a modern scourge right up there with carpal tunnel syndrome. And so Amazon has looked to find ways to secure those precious packages of yoga pants, diapers and Instapots. Staring this past week, if you have a late model GM car with OnStar, you can sign up for in-car delivery. Give them access and location, and a courier will be able to pop your trunk and drop your case of ramen in to await your return. Just make sure you have removed other valuables or bodies from the boot. 

So let's put it all together. An organization that people like so much they pay to be a part of it. That same organization gets people to pay even more because of the perceived value. They create new products and services in response to the needs of its customers. And they does it all without any ideological bent but rather in the name of service. I don't know about you, but I'm liking the sound of President Bezos.

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Marc Wollin of Bedford usually shops Amazon first. His column appears regularly in The Record-Review, The Scarsdale Inquirer and online at http://www.glancingaskance.blogspot.com/, as well as via Facebook, LinkedIn and Twitter.

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