Amazon knew customers felt tricked into signing up for Prime, but disregarded changes because they would reduce subscription growth, internal docs show
mturner@businessinsider.com (Matt Turner,Jordan Parker Erb)
Hi, I'm Matt Turner, the editor in chief of business at Insider. Welcome back to Insider Weekly, a roundup of some of our top stories.
mturner@businessinsider.com (Matt Turner,Jordan Parker Erb)
Hi, I'm Matt Turner, the editor in chief of business at Insider. Welcome back to Insider Weekly, a roundup of some of our top stories.
On the agenda today:
Internal documents show Amazon has for years knowingly tricked people into signing up for Prime subscriptions.
© Provided by Business Insider Amazon; Rachel Mendelson/Insider
Who here hasn't ordered something from Amazon in the past 12 months?
The e-commerce giant has built on its ubiquity to turn Amazon Prime into one of the most popular subscription programs in the world, with more than 200 million members as of last year. Often, it's been the promise of free shipping that's flipped shopper to subscriber.
But as Eugene Kim reported, those Prime sign-up screens have been the source of much debate inside Amazon. Internal documents show it has been aware for years of customer complaints that its user-interface design misleads people into signing up for Prime. But when Amazon tested clearer language on these pages, there were fewer signups.
Eugene's reporting takes us inside the issue, describing documents and emails discussing the trade-offs between Amazon's prized "customer centricity" and business goals. It also reveals a previously undisclosed inquiry from the Federal Trade Commission.
Here, Eugene gives us the behind-the-scenes scoop.
What's the most interesting thing you learned while reporting this piece?
Eugene: The big takeaway, from speaking with sources, is that Amazon preaches customer satisfaction — but only when it makes sense financially. The company knew for years that customers complained about Prime's sign-up process, but decided not to change much because it would have led to fewer sign-ups and smaller membership revenue. Maybe there are other examples of this within Amazon?
What do you think is next for Amazon's subscription practices?
Eugene: Many of my sources talked to me in hopes of seeing change in the Prime sign-up flow. So I would expect some kind of improvement in clarity. But it's also entirely possible Amazon won't do anything, given their statement to us that said the current design is "clear and simple."
Read the full story here:
Internal documents show Amazon has for years knowingly tricked people into signing up for Prime subscriptions. 'We have been deliberately confusing,' former employee says.
© Marianne Ayala/Insider Marianne Ayala/Insider
Who here hasn't ordered something from Amazon in the past 12 months?
The e-commerce giant has built on its ubiquity to turn Amazon Prime into one of the most popular subscription programs in the world, with more than 200 million members as of last year. Often, it's been the promise of free shipping that's flipped shopper to subscriber.
But as Eugene Kim reported, those Prime sign-up screens have been the source of much debate inside Amazon. Internal documents show it has been aware for years of customer complaints that its user-interface design misleads people into signing up for Prime. But when Amazon tested clearer language on these pages, there were fewer signups.
Eugene's reporting takes us inside the issue, describing documents and emails discussing the trade-offs between Amazon's prized "customer centricity" and business goals. It also reveals a previously undisclosed inquiry from the Federal Trade Commission.
Here, Eugene gives us the behind-the-scenes scoop.
What's the most interesting thing you learned while reporting this piece?
Eugene: The big takeaway, from speaking with sources, is that Amazon preaches customer satisfaction — but only when it makes sense financially. The company knew for years that customers complained about Prime's sign-up process, but decided not to change much because it would have led to fewer sign-ups and smaller membership revenue. Maybe there are other examples of this within Amazon?
What do you think is next for Amazon's subscription practices?
Eugene: Many of my sources talked to me in hopes of seeing change in the Prime sign-up flow. So I would expect some kind of improvement in clarity. But it's also entirely possible Amazon won't do anything, given their statement to us that said the current design is "clear and simple."
Read the full story here:
Internal documents show Amazon has for years knowingly tricked people into signing up for Prime subscriptions. 'We have been deliberately confusing,' former employee says.
© Marianne Ayala/Insider Marianne Ayala/Insider
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