Executive Briefings

Pricing Snafus on E-Commerce Sites Undermine Faith in Retailers

On July 17, a wide range of third-party products on Amazon showed special pricing: one cent. The pricing glitch was, yet again, caused by some third-party integration and a coding error.

How many third-party hiccups will Amazon - not to mention every other major e-commerce site - suffer prior to putting in place serious checks before partners can do some serious damage to Amazon fundamentals?

A lot of Amazon sellers will have a lot of cleanup to do, but there's a bigger issue here. Customers who go to Amazon had their orders canceled and, third party or not, that's going to undermine their faith in Amazon. Buying from a third party on Amazon's site is supposed to be the best of both worlds: a chance to give business to small players while enjoying the security and reliability of the Amazon environment.

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Keywords: supply chain risk management, value chain IT, e-commerce software failures

How many third-party hiccups will Amazon - not to mention every other major e-commerce site - suffer prior to putting in place serious checks before partners can do some serious damage to Amazon fundamentals?

A lot of Amazon sellers will have a lot of cleanup to do, but there's a bigger issue here. Customers who go to Amazon had their orders canceled and, third party or not, that's going to undermine their faith in Amazon. Buying from a third party on Amazon's site is supposed to be the best of both worlds: a chance to give business to small players while enjoying the security and reliability of the Amazon environment.

Read Full Article


Keywords: supply chain risk management, value chain IT, e-commerce software failures