Topic of the Week - Amazon's job cuts and discontinuation of its "Try Before You Buy" service
Amazon has announced that it is eliminating approximately 200 roles across its North America retail operations, impacting both physical store and eCommerce teams. This move is part of the company's regular evaluation of its team structures to ensure it can "move fast as we innovate for customers." The cuts are unrelated to Amazon's decision to discontinue its "Try Before You Buy" service, which allowed Prime members to try out clothes, shoes, and accessories before paying for them.
The discontinuation of the "Try Before You Buy" service is also a significant development. The service, which was launched in 2017, allowed users to test out a mix of luxury, staple, and Amazon-owned brands, with the option to return unwanted items for free within seven days. However, Amazon has decided to shut down the service on January 31, 2025, citing the limited scale of the service and the increasing use of AI-powered features, such as virtual try-on and personalised size recommendations, as reasons for discontinuing the service.
The job cuts and discontinuation of the "Try Before You Buy" service may have implications for the retail and eCommerce industries, as well as for companies that offer similar services. The fashion and eCommerce industries may be affected, as well as companies like Stitch Fix and Rent the Runway that offer similar services. Amazon's focus on cost-cutting and technology investment may also lead to more changes and consolidations in the retail and eCommerce industries in the coming months.
Overall, Amazon's latest moves are part of its ongoing efforts to reduce costs and streamline its business. The company has been scaling back its operations, led by CEO Andy Jassy, who has been focused on cutting costs and improving the customer experience. While the job cuts and service discontinuations may be challenging for some employees and customers, they may also lead to more efficient and innovative operations in the long run.
eCommerce Market Stats
See some statistics relating to this week’s topics in the eCommerce market below.
2025 eCommerce stats
- The global e-commerce market is expected to reach $6.5 trillion by 2025, growing at a compound annual growth rate (CAGR) of 14.1% from 2020 to 2025.
- By 2025, 75% of retailers are expected to use AI-powered chatbots to improve customer service, up from 30% in 2020.
- Mobile commerce is expected to account for 72% of all e-commerce transactions by 2025, up from 50% in 2020.
- Voice commerce is expected to reach 40 billion in sales by 2025, up from 2 billion in 2020.
*Statistics sourced from Statista
That’s all for this week…
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