Amazon is ending its donation program AmazonSmile. Through the charity program, the company gave a portion of its sales to a user-selected charity.
This comes in the midst of an extensive cost analysis of the business by CEO Andy Jassy.
In order to make it simpler for customers to support their preferred charities, Amazon introduced AmazonSmile in 2013. However, ten years later, the program hasn’t progressed to have the effects the company hoped for. Because there were so many qualifying organizations While more than a million organizations qualified worldwide, Amazon claims that its capacity to make a difference was frequently compromised.
Through the program, the online retailer donates a portion of each eligible purchase made on the website to the customer’s preferred charity. According to Amazon, since the program’s inception in 2013, it has donated nearly $500 million to charitable organizations.
According to Amazon, the typical donation was less than $230. The company now plans to shut down AmazonSmile by the 20th of next month.
More productive investments will take the place of AmazonSmile
As the economy continues to deteriorate the Amazon’s retail business is experiencing slower growth, hence the plans to shut down its AmazonSmile program.
According to the firm, Amazon will focus its investment in areas where it can create a substantial difference, such as aiding with relief efforts for natural disasters, affordable housing, and community support programs.
In addition to implementing a recruiting freeze throughout its corporate employees, Amazon has started the largest round of layoffs in company history. In an effort to cut expenses, Jassy has put a halt to warehouse expansion and shut down a few test initiatives, including a healthcare service and an oddball kid-friendly video calling device.
