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Amazon Was Sucking in Quidsi’s Inventory Over a Year Before Shutdown

Amazon’s explanation last week that it was closing Quidsi because the unit was unprofitable didn’t sound much like Jeff Bezos. The Amazon founder is famous for operating retail businesses at such slim margins that rivals can’t compete. Quidsi employees had another reason to be surprised. From a report: As recently as late 2016, at Quidsi’s quarterly all-hands meeting in Jersey City, NJ, executives from Amazon headquarters in Seattle spoke to the unit’s 250-plus workers and affirmed the parent company’s commitment to Quidsi’s business, according to multiple people who were in attendance. One of the executives to present was John Boumphrey, Amazon’s vice president who oversees baby products, and the direct boss of Quidsi CEO Emilie Arel Scott, said the sources, who asked not to be named because the meeting was confidential. Yet last Wednesday, with the first quarter coming to a close, employees were informed that Amazon was shutting Quidsi down and laying off hundreds of workers, ostensibly because the division was unable to make a profit. The diapers, toiletries, beauty products and pet care items sold by the various Quidsi brands would all be available on Amazon.com, the company said. […] In the fourth quarter of 2015, Amazon started redirecting inventory from Quidsi’s three fulfillment centers — in Nevada, Kansas and Pennsylvania — to Amazon’s own massive network of warehouses, sources said. That process continued throughout 2016 and is still underway, two people told us. Quidsi’s facilities were running out of capacity.

Read more of this story at Slashdot.

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