Amazon Is Pocketing Half of Retailers’ Sales

https://gizmodo.com/amazon-amazon-prime-marketplace-online-shopping-1850109105


Image: Quinn Rooney (Getty Images)

Merchants on Amazon Marketplace are paying the company a commission fee of more than 50% of each sale. A new report by Marketplace Pulse revealed Amazon raised the total cost sellers are required to pay out toward storage fees at company warehouses, packaging and delivery, and advertising on the site.

The commission fee has gradually risen since 2016 according to the report, but sellers were not heavily impacted because of an influx of customers and a substantial increase in sales during the covid-19 pandemic. But the report said that sales plummeted when the lockdowns lifted and buyers turned to things like travel and dining out rather than online shopping. The residual effects meant that Amazon suffered its slowest sales growth since its inception.

Marketplace Pulse reported that Amazon receives a 15% transaction, or referral fee, from the sellers who also pay between 25% and 35% in Fulfillment fees and 15% toward advertising and promoting on the site.

The average fees Amazon collected last year rose to 51.8% from 35.2% in 2016 and a company spokesperson said in an emailed statement to Gizmodo that the fee sellers are charged is based on the cost and investment Amazon puts first.

“Many selling partners have built and run their businesses without advertising,” she said. “If they choose to advertise their products, they have many service providers to choose from. Sellers are not required to use our logistics or advertising services, and only use them if they provide incremental value to their business.” 

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Although sellers can choose if they want to participate in packing, delivery, and advertising, they don’t have control over the amount Amazon charges or the fees included. Marketplace Pulse reported that the company’s advertising revenue grew by 18.9% in Q4 last year, but was small in comparison to the year prior when advertising increased by 32.2%.

Melissa Burdick, the president of Pacvue and former Amazon executive told Bloomberg Amazon is focusing on expanding its advertising efforts, meaning the coveted space no longer holds the allure it once did.

“The advertising space on Amazon isn’t as successful as it used to be for sellers,” Burdick said. “A lot of sellers are choosing to offer discounts rather than advertise because shoppers are responding more to discounts.”

Merchants are hesitating to raise their prices even as they struggle to make money, the report showed, adding that the small business owners have also turned to shipping their own packages instead of using the Amazon warehouse and are spending less on-site advertising.

“For these small businesses, it’s getting harder and harder to be profitable because they are spending more and more money on Amazon fees,” Juozas Kaziukenas, Marketplace Pulse’s founder and chief executive officer, told Bloomberg. “Amazon might be tempted to keep increasing fees because it’s in a tough spot, but you have to reach some kind of equilibrium.”

The spokesperson told Gizmodo that Amazon’s fulfillment center is still 30% less expensive on average than the standard shipping services offered by third-party providers and is 70% less than alternative two-day shipping options.

“Many of our selling partners have built and run their businesses without advertising,” the spokesperson said, adding, “If they choose to advertise their products, they have many service providers to choose from.”

via Gizmodo https://gizmodo.com

February 13, 2023 at 02:42PM

Amazon’s Zoox is now operating its purpose-built autonomous taxi on public roads

https://www.engadget.com/amazons-zoox-successfully-tests-its-purpose-built-autonomous-taxi-on-public-roads-134628930.html?src=rss

Amazon-owned Zoox has started offering driverless robotaxi rides in California after receiving a testing permit from the DMV (Department of Motor Vehicles), the company announced. Unlike the autonomous vehicles from Cruise and Waymo, Zoox’s vehicles are purpose built for driverless taxi rides, so they have no steering wheel or pedals.

On February 11th, shortly after receiving the permit, Zoox conducted the "first run of its employee shuttle service in Foster City, California, marking the first time in history a purpose-built autonomous robotaxi without traditional driving controls carried passengers on open public roads," it wrote in a press release.

To get to that point, the company completed what it called "rigorous" testing with the vehicles on private roads. It also ran its L3 test fleet (hybrid Toyota Highlanders with safety drivers) over a million autonomous miles on data-gathering missions in San Francisco, Las Vegas and Seattle. 

Zoox has been developing its unique vehicles since it launched nine years ago, and was acquired by Amazon in a $1.2 billion merger in the summer of 2020. Its robotaxis, introduced later that year, are relatively tiny at 3.63 meters (11.9 feet) long, have passenger bench seats that face each other, four-wheel steering and can drive in either direction. That makes them highly maneuverable, but they can also travel at speeds up to 75 MPH and run 16 hours on a charge thanks to the immense 133kWh battery packs. 

Zoox will now offer full-time employees robotaxi rides between its Foster City offices during business hours. "As the company continues to advance its progress and secure additional government clearances, it will expand its service to the general public," the company wrote. 

via Engadget http://www.engadget.com

February 14, 2023 at 08:00AM

The Morning After: An AI flew a US Air Force training aircraft for over 17 hours

https://www.engadget.com/the-morning-after-an-ai-flew-a-usaf-training-aircraft-for-over-17-hours-121541057.html

An artificial intelligence agent recently flew a Lockheed Martin VISTA X-62A training aircraft for over 17 hours. VISTA (which stands for Variable In-flight Simulation Test Aircraft) normally uses software to simulate the performance characteristics of other aircraft. On this flight during a testing period in December, however, it mimicked a human pilot. US Air Force Test Pilot School (USAF TPS) Director of Research Dr. M. Christopher Cotting said in a statement, "VISTA will allow us to parallelize the development and test of cutting-edge artificial intelligence techniques with new uncrewed vehicle designs."

This is the first time AI has been engaged in such a way on a tactical aircraft, Lockheed says. It’s like they’ve never seen the 2005 box-office bomb, Stealth

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February 14, 2023 at 06:29AM

The Biology of Stress in Your Body

https://www.discovermagazine.com/mind/the-biology-of-stress-in-your-body

For most humans today, the threat of encountering a wild bear in daily life is quite slim. And yet, the likelihood of experiencing a stress response as if you are evading or defending yourself from a bear remains high. In our bodies, this stress reaction can play out the moment we’re called upon at work to give a presentation, or perhaps during a nerve-racking first date: sweaty palms, bowel discomfort, the sensation of pins and needles pricking the skin. This is the reality of living as social, modern humans with biological systems that have evolved for millions of years. “The human social interaction is the most stressful thing that we do,” says Cliff Summers, a behavioral neuroscientist at South Dakota University. Despite the bodily discomfort, this acute stress response often means your nervous system and brain are functioning properly, carrying out beneficial and vital tasks. Though biologists and neuroscientists are still unraveling the complex interplay of hormones, neurotransmitters and physiological effects informing our behaviors and health, resulting in stress reactions. Acute Stress Response: Stress Hormones to Stress Reactions Stress gets a bad rap as a sort of villain to the human experience. But it’s often a beneficial and productive force for change and survival. For starters, one lens in the research field defines stress as “a state of homeostasis being challenged.” (This idea builds on the work of Hans Selye, who became the father of stress theory in the mid 1900s.) In effect, this version of stress is an element of daily life for most living things seeking security. So, what exactly takes place in the body in the face of stress, anxiety or nervousness when it comes to acute stress response? Read More: What is Anxiety and How Can Worries Overpower Us? Stress Hormones Hormonally speaking, a stressful state — whether involving an unexpected bear, or an angry boss in your office — boosts two key chemicals in the human body: adrenaline and cortisol, according to Summers. Together, these two stress hormones (and some neurotransmitters) coordinate to optimize the flow of blood sugar to the brain, and, in turn, carry out the fight-or-flight mechanics in the physical body. Let’s start with the effects of cortisol. When cortisol gets pumped into the bloodstream, the hormone blocks the uptake of sugar in most cells throughout the body. That leaves an influx of sugar in the bloodstream available for the brain to absorb, ultimately heightening cognitive function to manage a stressful encounter. While this is playing out, the stress reaction in the body also triggers the release of adrenaline (also called epinephrine) from the adrenal glands. The adrenaline hormone floods the bloodstream and is rapidly dispersed to all parts of the body, such as the eyes, heart, blood vessels and airway. The main function of epinephrine, or adrenaline, is to release and help convert reserves of sugar and nutrients stored in cells throughout the muscles and other organs. Stress Reactions The resulting boost of energy is something we can see play out in athletes, such as a runner participating in a marathon, the proverbial mother who displays a feat of strength to rescue her child or the unfortunate hiker who encountered a bear. “You actually have more energy to run away, because adrenaline and cortisol are working to release this energy into your system,” Summers says. It’s also this epinephrine that can prompt some of the localized reactions, such as sweaty hands or stomach pain, that many of us identify as feeling nervous or stressed. In part, this is because adrenal receptors are located in our glands and intestines. Also, when the adrenaline hormone attaches to receptors in the gut, for instance, it stops typical contractions from occurring, which causes discomfort. Read More: Can You Predict a Panic Attack? The Danger of Perpetual Stress In animals and humans alike, the frequency, severity and pace of this stress response engaging can bring about very different long-term effects on the body and mind, according to Summers’ research on mice. “We [tend to] think stress is a bad thing,” Summers says. “As it turns out, experiments that I have done show pretty definitively that having a strong stress response is a good thing, only if it lasts for a short time.” Ideally, the stress response should turn on quickly, and turn off quickly, switching between the sympathetic and parasympathetic nervous systems, respectively. 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February 13, 2023 at 02:41PM