Serious Concerns with Amazon
Throughout the years, Amazon has remained as one of the largest e-commerce platforms – but that’s not all. The company has since expanded its service, and now it has various products such as cloud computing (Amazon Web Services), Alexa, etc. And while it has been doing well, there have been major concerns that should worry whenever you want to buy or use a service from Amazon. They include;
Amazon’s AWS security issues
AWS claims that their system uses proven cryptographic techniques to authenticate users’ access to their accounts. And it is for this reason they have allowed their large user-base to have control access to their personal data. However, a Computer World reporter argues that any company/ organization considering cloud computing as their services have major security worries. These companies often worry about how they can best control access to their data, and how they can best trust that no attacker can leak their data. Amazon being a victim, they are always worried about how their AWS users will control their data, without compromising the entire system.
Amazon is consistent with its late product delivery behavior
Despite the company’s efforts to improve its delivery process to its consumers, Amazon hasn’t managed to overcome the problem. Users who have been making orders via its online stores, as well as physical stores, have all received late shipments. Drawing from Business Insider, Amazon Prime consumers are enraged by Amazon’s late delivery of the ordered products. They are constantly complaining that Amazon is not keeping its 2-day delivery policy. Moreover, a Reddit user wrote to complain that Amazon’s two-day delivery policy has been abused lately, and the company is doing nothing about it.
Existing antitrust worries
According to WIRED, there are speculations that Amazon is faced with antitrust worries that could lead to their diminishing returns. The company is mostly worried about the current US administration that could implement the antitrust laws which will lower their market aggressiveness significantly. Moreover, Amazon has for a while, been employing subsidized anti-competitive strategies on its various businesses. This move saw them have a monopoly of most e-commerce distribution channels.
Regardless of the efforts made, Amazon hasn’t been able to accommodate its employees, as well as those of partner industries. This and the fact that US antitrust regulators are always on their necks, has caused mistrust with its major investors.
Amazon reduced pay-out tax rates despite revenue influx
A report published by BBC in 2017 stated that UK’s pre-tax profits trebled to £72.3 million; and even then, Amazon UK lowered their tax bill to £4.6M. This came after Amazon had made announcements in 2015 that they were going to pay fairer tax rates. Despite the company’s big return in terms of revenue value, they still insist on not paying federal tax to the relevant authorities. According to Business Insider, the current US president, Donald Trump has criticized the company, for not paying taxes to the government. His rightful criticism came after he had lowered the tax bills for big companies, making it for them to comply with the federal tax program. Moreover, Business Insider added in a transcribed video that most speakers condemned the company as a conservative – not ready to play its corporate role of supporting the economy.
Amazon is facing intense competition
Amazon is currently faced with growing competition on all its major fronts, including, media, electronics merchandise as well as cloud computing.
Drawing from Investopedia, Amazon Prime (media sector) faces competition from big players like Google’s (GOOG), Netflix’s (NFLX), Apple’s (AAPL) as well as Time Warner Cable’s (TWX). Its electronics segment is now threatened by sellers like Best Buy’s (BBY), Walmart’s (WMT), and Target’s (TGT) among others. Also, the merchandise section is also being chased by players like PC connection’ (CNXN), Insight Enterprise’s (NSIT) and Accenture’s (ACN) just to mention. Finally, its cloud computing segment faces fierce competition from big companies like Microsoft Azure’s (MSFT) and IBM’s (IBM).
Drawing from the concerns above, it’s not wise to buy from Amazon and even trusting it to store your personal data. Although Amazon is a major player in the market, they lack proper security facilities, and you don’t want your data to be at risk. Your best bet is to use services that assure your privacy and security.
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