Abstract

Amazon.com, Inc, an online retail company, was established in 1994 by Jeff Bezos. The company started with selling books online and then diversified into various products from software to furniture. In a short span of time, Amazon became one of the most successful companies in e-commerce. The company’s success also attracted criticism ranging from business practices and policies to working conditions at its large warehouses. To overcome criticism, Bezos came out with ‘Pay to Quit’ offer where the employees at the fulfillment center were offered US$ 2000 to US$ 5000, based on their experience, to quit. The case discusses the pros and cons of this program, and whether Amazon will benefit from such a policy.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• The online retail industry
• Working conditions at online retail companies
• The pros and cons of the pay to quit policy

Keywords

Amazon, Pay to quit, online retail, Jeff Bezos, warehouse working conditions, HR policies, Zappos, fulfillment center