Amazon’s Low Prices Sometimes Come with a High Cost

Regular readers know that I am not only a fan of Amazon.com, but also a subscriber to its Prime feature. I think the company has made most of the right moves, except its digital content offerings, especially video, seem stuck in some older, uglier version of the web where a lot of the functionality you expect isn’t there and what functionality you expect requires a click that takes you to yet another page. Worse, those pages often don’t know from whence you came.

All that noted, there is always a potential dark side to human endeavors, especially in the business world where costs, by and large, don’t magically disappear, but instead get shifted somewhere. The question is always there. Americans have largely had our stagnant wages propped up through the low cost of items manufactured in other countries where wages are low and the cost of regulation, such as environmental protections, are far less.

If you are in the distribution business like Amazon, however, you have little choice but to have facilities throughout the U.S. But there is always a way to squeeze out costs. The way Amazon does it, in at least one location in Pennsylvania but one has to assume the others operate similarly, is to operate a warehouse that is not air conditioned, use temporary workers, and design a system that literally uses people up, guaranteeing they won’t stick around for a permanent position.

A local Pennsylvania paper has the complete story.