Amazon Just Doesn’t Understand Ethics
Since this Amazon brouhaha started, I have maintained that I really don’t know whether Amazon’s actions are illegal (anti-trust, restraint of trade, etc.). I’m not a lawyer, after all, nor do I play one on YouTube. But, in my opinion, Amazon’s actions are unethical with all the hallmarks of a marketplace bully.
Whether they are doing anything illegal is almost beside the point. Market pressures – such as from independent publishers who have been dealing with Amazon for years fairly and within their stated guidelines – often do result in a change of behavior in large corporations.
It happens all the time.
We, as independent (and self) publishers and authors, have every right to try to pressure Amazon to change its behavior. We have as much right to do that as Amazon has to change their rules after having lured thousands of honest capitalists into their lair.
For years, I have tended to avoid the megalithic corporations that seem to care little for their customers. I prefer to use search engines other than Google. Why? Because Google has shown a flagrant disregard for the copyrights of myself and other authors and publishers worldwide.
I prefer to use software other than Microsoft. Why? Because they have shown, over and over, a disregard for the customer and have gone way overboard in their unethical pursuit of market dominance. And I don’t believe they necessarily have a better product, merely the marketplace muscle to trample customers and competitors underfoot. They don’t want a level playing field or a true free marketplace (just listen to Billy-Boy Gates cajole Congress and spit in the face of the American consumer who has made him the wealthy man he is).
I see Amazon heading down that same path and, yes, it angers me. I have always been a big Amazon-backer and have spent more money than I care to count with them (not just for books). Now, they have shown their dark side, and I don’t like it one bit.
I am not suggesting we need new laws to make them knuckle-under. If they have violated existing laws, I wouldn’t mind if some taxpayer funds were spent to bring them in line. Laws and violations of them all too often seem arcane and fraught with misinterpretations and flagrant abuse (on both sides).
I, however, see ethics and ethical behavior in a much clearer light. When deciding on a course of action, I rarely consider whether an action is legal. Instead, I ask myself if it is ethical and if it will make me feel good if I implement it. Almost 100% of the time, that which is ethical is also legal. But all things legal are not ethical.
I also choose to conduct business ethically and won’t do business (or even have personal relationships) with those who act unethically.
Amazon has failed my test of business ethics. They could have given fair warning to their publisher-vendors and made the case for needed changes. And they could have done so openly and honestly. Instead, Amazon sounded like the worst of our conniving politicians, changing their story over the course of a couple of days when people began asking questions. First, they said it wasn’t true, then they admitted it was true but issued an official statement full of half-truths and blatant lies. And we are now supposed to believe, even trust, them?
On the other hand, Amazon could have created a better product (using their BookSurge acquisition) and marketed it ethically. If successful, publishers would have flocked to their “better mousetrap.” But they didn’t. They preferred to work in the shadows, attempt to mislead their critics, and hide behind questionable confidentiality clauses in their new contracts.
True, Amazon Marketplace selling is an option, but we all know that customers much prefer to buy direct from Amazon than from Marketplace sellers.
True, we can all take our online business elsewhere, but that entails restructuring marketing plans and creating a whole new online paradigm. Such changes are never without cost or errors.
Amazon had a legal right to do what they did, but they have demonstrated their ethical shortcomings by pursuing their chosen course. Our company, Slipdown Mountain Publications LLC, is rethinking how we deal with Amazon. We have one book still in the Advantage program but will not be fulfilling any more orders for it from Amazon – we sell lots of that book from our own website (and quite a few through Marketplace). And there is no other source for it, since it is not handled by a distributor (intentionally).
We have other titles available on Amazon through our Lightning Source account. To date, nothing has changed there. I fully expect changes eventually, and probably not for the better. Maybe Amazon will wait until the uproar quiets a bit or maybe they will continue to try to force additional changes behind the scenes. And maybe, just maybe, they’ve done all they intend to do. Maybe, but I doubt it.
Amazon has been a boon to our company and its books, but we can live without them. I’m sure they can live without us, too. However, rather than push Amazon as an essential part of a solid online marketing program, I will now be pushing other options in my roles as author, independent publisher, and board member of a regional publishing association.
Respect must be earned…over and over again. And loyalty is a two-way street.
Amazon has shown that it either does not understand those concepts or just doesn’t care.
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Walt Shiel has been a freelance writer for 17 years and a publisher for four. He serves as publisher for micro-publisher Slipdown Mountain Publications LLC (www.SlipdownMountain.com) and as
Managing Partner for Five Rainbows Services for Authors and Publishers (www.FiveRainbows.com), a subsidiary of Slipdown Mountain. He serves on the Board of Directors of the Upper Peninsula Publishers and Authors Association (www.UPPAA.org), a regional affiliate of PMA and a regional partner with SPAN.
April 18th, 2008 at 12:02 pm
Walt,
We cannot agree with you more on your sentiments. We are a small company selling books to artists, with no other distribution channels. Apparently Amazon came to us several years back and wanted to offer our books. Since we took over this business a year ago, we have had no good experiences with them. Most specifically, their vendor payment procedure is rather obnoxious (claiming they didnt receive items, or simply delaying payment for their own gratification). They really have been attempting to bully us around, but we really dont feel that we need them. Our product is known around the world simply by word of mouth, long before our presence on Amazon. It is possible that sales would be higher if we bowed down to them, however producing high volume and not getting paid is a formula that puts small companies out of business, so we will not comply with this practice. We recently landed a minor success with them when we put their account on hold, finally 6 months later we have full payment. We will continue to maintain tight terms with them and will resume the hold the moment they break these terms. We have not yet decided to cut them off completely, but it has been considered. Thank you for confirming that we might not be the only small company they are treating poorly. In house, we refer to them as “the machine”, that has no living, breathing, humans that havent been assymilated:) Also, since having the experinces this side of the fence, we will no longer make purchases from Amazon directly, but only through the used and new section, since that process is more automated and a fairly reasonable experience. Thanks again.
April 20th, 2008 at 11:14 pm
Walt,
We’re four-square behind you on this. We, too, do not support unethical behavior, whether that be corporate or private, nor do we associate with unethical, dishonest people. You are known by the company you keep. We choose not to keep Jeff Bezos in the style to which he’s become accustomed, nor pay for his eccentricities, such as space colonies. We can live without Amazon, and so can our friends, families, and business associates.
Mari
editor-Jigsaw Press
http://www.jigsawpress.com
April 21st, 2008 at 1:28 pm
Another unethical Amazon practice is to put a time limit on gift certificates. Admittedly, not a major issue to publishers or authors, but something that just adds to Amazon’s burgeoning dark reputation. Some might even venture to call this theft. Amazon has a customer’s money and keeps it if the gift recipient does not use the gift certificate within a certain time limit. There should be no such time limit. How does it hurt Amazon to hold a customer’s money? If there is some unknown cost, then Amazon should give the money back. Moreover, you can not get in touch with customer service to make your case, you only get pro forma automate replies. I avoid doing business with Amazon.