24/7 Wall St. Insights

• The usually seamless Amazon.com Inc. (NASDAQ: AMZN) check-out process broke down over the Labor Day weekend.
• Such problems do undermine company reputations.
• Also: Discover the Next Nvidia.

Amazon.com Inc. (NASDAQ: AMZN) is famous for its cloud industry-leading AWS, its Prime fast shipping service, Prime Day deals, and Prime Video. However, at the core of Amazon’s success is its seamless check-out buying process. It is what makes Amazon so easy to use and brings in hundreds of millions of customers. However, it recently broke, leaving some buyers no way to finish the buying process. Customers vented their anger online.

According to CNBC, “In the run-up to the long weekend in the U.S., Amazon has started promoting discounts on products as part of a Labor Day sale. But people weren’t able to purchase discounted products because of the glitch, as some people pointed out on the X social network.” Amazon often has special sales around the holidays.

The problem is an example of how what seem to be small things can go wrong and damage a business, at least temporarily. It is like cars that won’t start without a charge from an outside battery, air conditioning that goes down in the hottest weather, and cellular systems that don’t work and render smartphones useless.

These problems may be short-lived, but they do undermine reputations. Complaints appear on social media, the press picks up the event, sales are lost.

Amazon’s service fumbled during one of the most important days of its year.

Prediction: Amazon (AMZN) Stock Will Hit $200 per Share This Year

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