Slashdot Mirror
Amazon Patents Bad Service For Bad Customers
mikesd81 writes "Techdirt reports that Amazon has been awarded a patent for Generating Current Order Fulfillment Plans Based on Expected Future Orders. Essentially, if Amazon deems that you won't be a long time customer or ordering again soon, your order will take longer to be expedited."
This could be a blessing in disguise!
If another retailer takes forever and a day to ship your stuff, they open themselves up to a patent infringement suit!
This could be a boon for internet shoppers everywhere...
=Smidge=
Better hurry--and be sure it says "on the Internet" so it's patentable.
One CPU cycle wasted on digital restrictions management is ONE TOO MANY.
As it seems that no one has read the damned patent - here is the concise version:
This has nothing to do with Amazon deciding that Joe Smith projects to be a lousy customer so lets not care about the order he just placed.
This is all about trying to determine the most profitable way to fill orders from multiple distribution centers, using projected future orders for those centers.
Of course, it's much cooler to be a sheep and follow the herd, isn't it?
Anybody who actually read that patent (obligatory of course not, this is slashdot) can see that the article has it totally wrong. First of all, Amazon -would- be stupid to patent what the article claims. It would be very bad for business, and whatever you may think of Amazon, they are extremely good at business. This patent describes a system for determining how to fulfill an order (not just in terms of when to ship, but also, where to ship from, how to ship, etc) based on a multitude of factors. These factors include future orders, but those future orders refer to the expectation of future orders for all customers. Statistics 101 (Amazon surely knows this): the future orders of one specific customer are very hard to model, but the future orders of all customers are pretty easy to model. The point is to optimize the fulfillment process for all customers. Yes, it -could- be possible for them to use these techniques to target specific customers, but I would think it much more likely that they would use this in the favor of new customers they are trying to hook, rather than older established customers. Netflix, anyone?
How can anybody here think they deserve to waste space by posting an opinion on something they haven't even taken the time to check out?
I think you (and most other posters) missed the point by oversimplifying it. I don't think this is a system that gives more frequent customers better treatment, and less-frequent ones worse. Here's why I think that - take a look at this:
Sample table from patent
The system allows them to prioritize delivery methods according to potential goodwill cost. Here's a simple example: Say Amazon has only two customers - you and me. We both frequently buy expensive stuff. I don't really care when it arrives, just so it arrives. You, on the other hand, complain if things arrive late. The system would allow Amazon to know that they should prioritize your shipments over mine.
Now, extend this to many, many customers with widely varying buying habits, and varying attitudes to early, on-time, and late deliveries. It's kind of cool, if you think about it. Say I buy stuff from Amazon very infrequently, but when I do, it's always *really* expensive, and I *hate* it when stuff arrives late. Then there's this other guy who buys less expensive stuff, but buys all the time, and *he* LOOOOOVES it when stuff shows up early, but doesn't much care if it's late. Then there's this chick who buys, on average, one book every month and never says anything positive if it's early, never complains if it's up to a week late, but rants and raves and swears to never buy again from Amazon when something's over a week late...
The system allows Amazon to prioritize shipment plans among their millions of customers, all with varying buying styles and delivery-time cares. They do it because it allows them to maximize their profits, which, it seems, most people on here don't like. But look at the effects - you get, not only *what* you want, but you get it within a timeframe that's acceptable to you!
That having been said, in a very simple sense, you and most others are right that it rewards "frequent customers," but in a limited way. The only way this system gives frequent customers preferential treatment is because frequent purchasers provide more information about buying habits and delivery-time cares to enable Amazon to prioritize. A more accurate statement would be: "This system will give preferential treatment to customers who spend the most money and complain the most if stuff is late and like it when stuff is early." Which makes sense.
Another thing to consider is that Amazon has a limited pool of shipping resources. This system is a method to accurately distribute those resources, but not just according to pure cost - it actually takes into consideration "goodwill cost!" For crying out loud, it takes into account your feelings!
This is an application of free-market principles to an internal resource distribution problem, and it's actually a clever solution. They increase their profit, and you get what you want. I don't see the down side to this. (Other than the patent.)