Amazon’s balancing act between sustainability and profitability goals.
Why are Amazon’s steep packaging costs—Rs 130 per shipment— both an India problem and an Amazon problem?
A short thread. Read ahead.
Why are Amazon’s steep packaging costs—Rs 130 per shipment— both an India problem and an Amazon problem?
A short thread. Read ahead.
India’s infrastructure is quite scattershot.
The company needs to account for pothole-filled roads, varying weather conditions, and non-standard truck sizes. Meanwhile, the very nature of the business makes this a difficult job for the company.
The company needs to account for pothole-filled roads, varying weather conditions, and non-standard truck sizes. Meanwhile, the very nature of the business makes this a difficult job for the company.
Unlike competitors like Nykaa (cosmetics) or Myntra (clothing), which focus on selling homogenous products, the challenge is much bigger for Amazon, which sells everything from electronic gadgets to engagement rings.
A 2020 report from ocean advocacy organization Oceana estimates that Amazon was responsible for 465 million pounds of plastic packaging waste in 2019 globally.
In India, company sources reveal, plastic bags account for almost 50% of packaging wrappers on Amazon-fulfilled orders.
In India, company sources reveal, plastic bags account for almost 50% of packaging wrappers on Amazon-fulfilled orders.
Replacing plastic with paper will push its existing spend on plastics up by 2.5X.
In a country where its core operations are still at a loss, Amazon wants to keep a tight leash on expenses without hurting its business prospects.
In a country where its core operations are still at a loss, Amazon wants to keep a tight leash on expenses without hurting its business prospects.
In a world where ESG metrics are increasingly becoming a focal point in business, Amazon has no choice but to find the right rhythm between sustainability and profitability, writes @MunsifV in today’s story:
the-ken.com/story/profit-o…
the-ken.com/story/profit-o…
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