Amazon argues that it may not have to eliminate some unprofitable but popular items to improve margins. It may also have to change the way it distributes those products by either having the manufacturer ship directly or partnering with other distributors. But for now, it doesn't help matters that Amazon is forecasting a particularly dismal first quarter. To further cloud the picture, many critics question whether the company's recent fixes are the right ones. Although Bezos insists that January's cuts are in Amazon's best interests in order to achieve profitability, he may risk tarnishing its image of excellent customer service.
Rumors persist that part of the reason it shut the center was in response to unionizing efforts.
It was closed because it was our most expensive customer-service facility. While the company clearly has its work cut out, it could have good reason to continue striving to survive as an independent e-tailer. At the very least, such differing interpretations among analysts suggest the stock's future will be volatile. Unfortunately, this is the situation for Amazon. Bid on or offer business services Web design, logo design, computer consulting, and more.