7 Worst Merchandise Amazon Ever Had (AMZN)

7 Worst Merchandise Amazon Ever Had (AMZN)

Amazon.com Inc. (AMZN) is an Web retailing large and a frontrunner within the race to regulate cloud computing. Folks take a look at Amazon’s nice success, however neglect all of the services it created that failed regardless of nice fanfare.

Jeff Bezos on Failure

Amazon founder and chief govt officer (CEO) Jeff Bezos treats his new initiatives the identical manner that enterprise capitalists handle new investments. “It is advisable to be making large, noticeable failures,” says Bezos. “The nice factor is that, once you take this method, a small variety of winners pay for dozens, tons of of failures, and so each single necessary factor we have carried out has taken numerous threat, risk-taking, perseverance, guts, and a few have labored out. Most of them haven’t. That has to occur at each scale degree all the best way down.” Bezos acknowledges making billions of {dollars}’ price of failures whereas creating some of the dominant corporations of all time.

Fireplace Telephone

The Fireplace Telephone, launched in 2014, is Amazon’s and Bezos’ greatest failure up to now. Bezos wished to create a smartphone to create extra loyalty from Amazon clients. The telephone wanted to be essentially the most technically superior and coolest telephone up to now. Bezos oversaw the challenge himself and overlooked the patron and designed the telephone he wished.

The telephone debuted at a value of $199 on a two-year contract. Proudly owning a brand new iPhone or a Galaxy was fashionable; no one wished to purchase a Fireplace telephone. The corporate regularly reduce the value till it hit 99 cents. Even at 99 cents, there was no line to buy a brand new Fireplace Telephone. Amazon shouldn’t be a fascinating client model.

Amazon took a $170 million write-off on the Fireplace Telephone. When the provision ran out in September 2015, gross sales ended.


In 2000, Amazon invested $60 million in Kozmo.com. Kozmo was a service delivering small objects akin to DVDs, books, meals, workplace provides, and Starbucks espresso. It operated in main cities, akin to New York, Boston, Chicago, and Los Angeles. The service was free to shoppers.

Kozmo closed down in 2001. Sixteen years later, Amazon is working arduous to fine-tune its speedy Prime supply service, however it is not free.


April 2015 noticed the launch of Locations, Amazon’s foray into the journey trade. Its preliminary focus was weekend getaway areas in Washington, Oregon, and California. Locations went on a everlasting trip in October 2015.

Day by day Offers

Amazon invested $175 million in LivingSocial in 2010. In 2012, Amazon wrote down the complete funding. Unusually, Amazon invested one other $56 million in 2013, which it wrote down in 2014.

The corporate began its day by day deal program, Amazon Native, in 2011. Amazon Native served as a competitor to LivingSocial and Groupon Inc. (GRPN). Nonetheless, quickly after the day by day offers fad started dying, and Amazon Native was shuttered in 2015.

Amazon Register

Amazon Register supplied bank card processing companies to small companies via gadgets hooked up to smartphones or tablets. The service was priced beneath rivals PayPal Holdings Inc. (PYPL) and Sq. Inc. (SQ), however retailers didn’t take to the thought of working with Amazon. A 12 months after its ballyhooed launch, Amazon quietly closed the service.

Success by Amazon

Success by Amazon is a good suggestion and one which’s seen success for the corporate. With Success by Amazon, retailers utilizing Amazon Market ship merchandise to Amazon, and Amazon ships the product when a buyer orders it. Whereas the service provider pays a price for the service to achieve legitimacy and the power to entry Amazon Prime clients, Amazon can higher account for stock and ship the product quicker to comfortable clients.

Nonetheless, Amazon usually mixes up the stock of a number of retailers promoting a product collectively in the identical success bin. A vendor delivery real merchandise to Amazon dangers having counterfeits despatched by a unique service provider shipped to the shopper. The vendor getting credit score for the sale is accountable for taking the blame, the return delivery, and refunding the acquisition. Amazon Market accounts for about 50% of Amazon’s gross sales, and counterfeit merchandise is a major downside that Amazon has not ended. The issue will solely proceed to develop: there have been over 3.3 million new sellers which have joined Amazon’s platform for the reason that starting of 2017.

Amazon iOS Kindle App

Amazon shares fault with Apple Inc. (AAPL) for the failure of the Amazon iOS Kindle app. Apple fees a 30% fee on all purchases made via apps. Amazon doesn’t have the revenue margin to pay the 30% price. Shoppers utilizing the Kindle app on an iPhone or iPad are required to make the acquisition via a pc and have it digitally delivered to the system. This places a damper on impulse purchases.

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