Amazon: Numerical Recipes Poison Good Deals

November 8, 2023

Dinobaby here. I read “FTC Alleges Amazon Used a Price-Gouging Algorithm.” The allegations in the article are likely to ruffle some legal eagles wearing Amazon merchandise. The main idea is that a numerical recipe named after the dinobaby’s avatar manipulated prices to generate more revenue for the Bezos bulldozer. This is a bulldozer relocating to Miami too. Miami says, “Buenos días.” Engadget says:

Amazon faces allegations from the U.S. Federal Trade Commission (FTC) of wielding price-gouging algorithms through an operation called “Project Nessie” according to court documents filed Thursday. The FTC says the algorithm has generated more than $1 billion in excess profit for Jeff Bezos’s e-commerce giant.

Let’s assume the allegations contain a dinosaur scale or two of truth. What could one living in rural Kentucky conclude? How about these notions:

Amazon knows how to use fancy math in a way that advantages itself. Imagine the earning power of manipulated algorithms powered by smart software in the hands of engineers eager to earn a bonus, a promotion, and maybe a ride in a rocket ship from the fountain head of the online bookstore. Yep, just imagine.
Amazon got caught. If the justice system prevails, will shoppers avoid Anazon?l lNope, in my opinion. There are more Amazon delivery vehicles in the area where I live in nowhere Kentucky than on the main highway. Convenience wins. So what if the pricing is wonky. Couch potatoes like couches, not driving 30 minutes to a so-called store. Laws just may not matter when it comes to big tech outfits.
Other companies may learn from Amazon. The estimable CocaCola machines in some whiz kids’ dreams learns what a person likes and prices accordingly. That innovation may become a reality as some bright sparks invent the future of billing as much as possible and hamstringing competitors. Nice work, if Amazon does have the alleged money machine algorithms.

What is the future of retail? I would offer the opinion that trickery, mendacity, and cleverness will become the keys to success. I am glad I am an old dinobaby, but I like the name “Nessie.” My mama Dino had a friend named Nessie. Nice fangs and big quiet pads on her claws. Perfect for catching and killing prey.

Stephen E Arnold, November 7, 2023

Written by Stephen E. Arnold · Filed Under Amazon, Business strategy, News

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Stephen E. Arnold monitors search, content processing, text mining and related topics from his high-tech nerve center in rural Kentucky. He tries to winnow the goose feathers from the giblets. He works with colleagues worldwide to make this Web log useful to those who want to go "beyond search". Contact him at sa [at] arnoldit.com. His Web site with additional information about search is arnoldit.com.