Jeff Bezos is an Evil Genius

Do I agree with last weekend’s Amazon scan-for-credit sale? No.

Do I think it may go down in history as one of the smartest marketing moves ever? Yup.

Jeff Bezos (CEO, Amazon.com) knew exactly what he was doing…and he got all of us, present company included, to help him. 

By the time “scanning Saturday” rolled around, nearly every buy local, shop local, and other “local” organization had emailed me to ask for The 3/50 Project’s support in their anti-Amazon endeavors. Invitations ran the gamut: sharing our creative ideas on someone else’s website…signing multiple petitions…and literally becoming “the face of [an anti-Amazon] campaign.”

None of which I accepted.

Here are the stark facts:

1. Most folks didn’t/don’t have correct info about what, exactly, the Amazon offer included. It’s wasn’t a straight $5 off all items—it was a skimpy 10% off, up to a maximum of $5.00 per item, on a maximum of three items ordered online. Technically, the shopper could opt for that $899.99 3D flat panel TV, but they’d still only get a $5 credit.

2. The vast majority of discounted purchases made through the Amazon app added shipping costs that exceeded $5.00. This made most purchases cheaper in the store than they were through the app. The good news for brick and mortars is that they most likely got the sale; the bad news is that Amazon learned a lot about what’s hot…and on store shelves.

3. Several petitions are circulating to get the Amazon app shut down. Folks, that just ain’t gonna happen. It’s been around for a while, has produced significant revenue for Amazon, and isn’t breaking any laws. The argument that using an app to compare prices, then offer a “buy it from us” discount violates fair trade laws doesn’t hold water. Not only is it legal—the same sales tactic has been used by brick and mortar merchants for decades. Believe me, Bezos didn’t sign off on this thing without having the legal department run it through the wringer every which way but loose.

4. He did, however, hold a press conference to announce the sale, which viralized its way through countless blogs, social media sites, newspapers, radio stations, and TV newscasts talking about the scan-and-save discount…without having to pay for all that air time. We (meaning all of us who support independent brick and mortars) did it for him. We screamed. We railed. We hollered. We blogged. And we managed to keep Amazon’s name in the news loop for no fewer than seven days running. Our bad. Bezo’s win.

5. Amazon didn’t make a ton of revenue doing this. They got something far more valuable—a virtual shopping list of what consumers want. Each scanned barcode sent the online behemoth SKU numbers. Consumers who photographed or spoke the item info into the app (both of which worked if barcodes weren’t available) provided everything necessary to identify SKU numbers.

Translated? Amazon turned your customers into their secret shoppers.

What’s the solution?

Accept the facts
The app isn’t going away. Amazon isn’t going away. And Amazon doesn’t play by “Gentlemen’s Rules.” They’re predatory; your customer is their target. It’s your job to hold that customer’s attention, not Amazon’s to help you do it.

Stop inviting customers to try their app
Every time a pro-local enthusiast railed about the horrors of Amazon’s scanning special, countless consumers thought “Wow..the app must be really great or small business owners wouldn’t be so scared.” Then they downloaded it. They tried it out. They used it. And guess what’s still on their phones? Yup. The app.

Rather than continue to help Amazon build the curiosity factor, spend time talking about you, about the services you provide, the extra mile you go, and the good that comes from spending locally. Make customers feel good about their actions and you’ll become a person they want to return to.

There’s only a week of holiday shopping left. Let’s point it toward you.

Dial down the reactionary attitude
Referring to Amazon with words like “exploitation,” “warfare,” and “raping” (terms actually being used by a couple of buy local organizations) is a major turn-off. Bitter will repel, not sell. For the love of God, please stop.

Focus on a realistic goal
Amazon has a successful app…but a serious Achilles Heel: internet sales tax, which continues to gain attention on the Hill. After the holidays have passed, check out the American Booksellers Association, whose actions have had measurable impact in various states. There are a number of organizations who have joined the movement, but the ABA is far and away the leader.

Final words
That’s exactly what this post is—my final words on the Amazon scanning sale. Like other pro-local fans, I succumbed to the initial waves of anger and disbelief, giving the online behemoth yet more visibility.

So why post this at all? Because someone needs to change the subject from what we can’t do to what we can. The 3/50 Project was born from my frustration with continual negativity, replacing it with positive action instead.

Time to revisit that mindset. Who’s in?

As a footnote:
I fully expect to get flamed for this post, and fully expect one particular pro-local organization (who shall remain nameless) to use the comments section as a promotional tool for their own endeavors. As always, the usual Rules of the Road apply. If you’d like to participate in the Comments section, please keep things professional, responsible, and don’t be surprised if I resist approving blatant self-serving sales pitches.