Small businesses that rely on Amazon as their primary distribution channel are one bad review away from financial ruin. Consider the sad story of Paul and Rachelle Baron, who had created a successful washable swim diaper business on Amazon. But then a customer posted a photo of a soiled diaper they bought, and the Barons are now $600,000 in debt.
The article "Amazon Sold a Used Diaper. It Tanked a Mom-and-Pop Business" by Spencer Soper, published on Bloomberg (paywalled) on July 15, 2024, tells the harrowing tale of the Barons' business crushed by Amazon's flawed return and review system.
With nearly $1 million in sales, the Barons' swim diaper was highly rated until a customer received a used, stained diaper and left a devastating one-star review with photos. "The diaper arrived used and was covered in poop stains," said the review. "Nothing could have been more disgusting!! I am assuming someone returned it after using it and the company simply did not check the item and then shipped it to us as if it was brand new. These were not small stains either. I was extremely grossed out."
How did that happen? The article reveals that Amazon's return inspection process is often rushed, with workers spending about a minute per item. This led to the used diaper being resold as new, with Amazon being entirely at fault for repackaging and re-selling the diaper. (The review was confirmed to be genuine, posted by a woman from California who received a feces-encrusted diaper.)
Despite the Barons' efforts to have the review removed, it remained visible, tanking their sales. The Barons' pleas to Amazon went unanswered, leaving them $600,000 in debt.
As you might expect, after the Bloomberg story was published, Amazon sprang into action and removed the review, which is like using a fire extinguisher on a house that was burned to the ground a month earlier.
Amazon spokesperson Chris Oster stated that improvements have been made to prevent such incidents, which is what they always say, isn't it?
Previously: Instagram's terrifying false positive nearly ruined a tech writer's life
