top of page

Amazon's Cost-Cutting Revolution: Unleashing Triumphs in Streamlining and Delighting Customers!

1/ Amazon's latest game plan to tackle delivery expenses has a delightful twist โ€“ a program offering customers a $10 refund for picking up deliveries instead of waiting for packages at their doorsteps.

2/ Target audience: Amazon Prime subscribers, who receive emails notification on a $10 incentive for orders over $25, encouraging them to use pickup points such as Kohl's, Amazon Fresh, and Whole Foods stores. ๐Ÿ’ช๐Ÿ’ฐ

2/ Further, Amazon started charging a $1 fee for returns to a United Parcel Service (UPS) store, even if a more convenient Amazon pickup-return location is available. ๐Ÿ’ธ๐Ÿ”„

3/ Some of the key cost-cutting measure deployed by Amazon includes raising the annual price of Prime subscription, hiking the minimum order amount for free grocery delivery, dishing out the idea of designated delivery days and expanding same-day delivery service for a small fee on orders under $25. ๐Ÿ’ฐ๐Ÿ“ฆ๐Ÿ“…

4/ Company's recent job cuts, totalling 27,000 positions, further highlight its commitment to enhancing efficiency and reducing expenses. ๐Ÿ”ง๐Ÿ‘ฅโฌ‡๏ธ


Estimated Cost Savings: Unquantifiable. โ“

Cost Optimisation Impact:

1/ Customers stand to benefit from Amazon's cost-cutting measures through refunds. ๐Ÿ›๏ธ๐Ÿ’ฐ

2/ Amazon streamlines operations and reduces costs associated with returns. Reducing delivery expenses can enhance profitability, potentially lead to more stable financial performance and increase shareholder value. ๐Ÿ“‰๐Ÿ’ผ๐Ÿ’ธ

3/ Layoffs can lead to a loss of skilled and experienced employees, a decline in productivity, and a negative impact on team spirit. It can weaken the company's reputation and employeesโ€™ loyalty. Attracting and retaining top talent in the future may also become a formidable challenge. โ›”๐Ÿ”ง๐Ÿ‘ฅ


Country: United States of America ๐Ÿ‡บ๐Ÿ‡ธ

Company: Amazon.com, Inc. ๐Ÿ“ฆ๐Ÿ’ผ

Industry: Conglomerate ๐ŸŒ

Cost Element: Employee Benefit Expenses, Fulfilment Cost and Freight Out Cost๐Ÿ’ผ๐Ÿ’ฐ๐Ÿš›

Nature: Opex๐Ÿ”ง๐Ÿ’ธ

Cost Classification: Variable Cost / Semi-Variable Cost + Direct Employees Cost / Operations Overheads / Administrative Overheads / Marketing Overheads๐Ÿ”„๐Ÿ’ผ๐Ÿ“ˆ๐Ÿ“Š๐Ÿ“ฃ


Source: May 18, 2023 |Firstpost |https://www.firstpost.com/world/amazon-to-pay-shoppers-to-skip-door-step-delivery-and-pick-their-own-parcels-12571732.html






ย 


CONTACT US

Reach us if you have any concerns regarding cost management accounting issues in your organization.


SANKALP WADHWA

Partner, Chandra Wadhwa & Co. (Cost Accountants) | B.Com, FCMA, ACA, DISA | Certified SAP-CO Consultant | Executive Program on Management and Finance (IIM, Ahmedabad)


Address: 1305 & 1306, Vijaya Building, 17, Barakhamba Road, New Delhi - 110001, India Mail: sankalp.wadhwa@cwcindia.in

Tel: +91-8800018190, +91-7503703599.

Website: www.cwcindia.in





bottom of page