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Downloaded from
YTS.MX
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It delivers to 100 countries,
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ships 400 items every second,
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00:00:08,000 --> 00:00:13,000
Official YIFY movies site:
YTS.MX
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00:00:08,615 --> 00:00:12,621
and is worth a staggering
$1.7 trillion.
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00:00:12,646 --> 00:00:15,590
It can only be Amazon.
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It is growing at a rate almost
unheard of for a company that size.
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Amazon's become so big
that their revenue dwarfs
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the GDP of some countries,
like Portugal.
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In this program me, the story
of how it's all happened...
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...told by the people who were there.
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From one of the first employees...
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It was dizzying to be a passenger
in this juggernaut.
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...to the brains behind
world-changing inventions like Prime...
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There was a lot of fear that this
would have disastrous effects.
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...and this little thing.
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AMAZON ALEXA: I was made to play
music, answer questions and be useful.
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I worked on the grandmother
of Alexa.
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Plus, we discover the secrets
behind its mind-boggling operation.
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From how it runs its warehouses...
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They want you to pick these items
in less than seven seconds.
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We trusted computers
to make all the decisions.
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...to how it exploits
our personal information.
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We actually did not
think about it as manipulation.
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To the ruthless tactics it uses
to destroy its rivals.
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They would price—cut these companies
into submission.
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We'll get the inside track
on getting the best deals...
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When it comes to saving money
on Amazon,
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there's a few cunning little tricks
you can try.
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There's websites within it
that actually, the prices
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could be up to 90% cheaper.
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...and delve into the archives
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to hear from the entrepreneur
behind it all,
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Jeff Bezos, the world's richest man.
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Well, Amazon.com was actually
profitable in December 1995.
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It must have been for,
oh, about one hour.
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Join us as we go Inside Amazon.
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OK, so first, a question.
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How many times have you shopped
on Amazon this week?
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Chances are, quite a few.
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Nine out of ten of us shop there.
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And for most of us, it's the first
retail site we click on.
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And is it any wonder?
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By one estimate, Amazon sells
over 600 million products
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on its website.
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Massive choice? Tick.
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And then there's that delivery time.
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Two days, one day, same day.
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Mind-boggling, isn't it?
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Want to know how they do it?
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Well, have a look in here.
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These warehouses are the beating
heart of the Amazon operation.
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And if you're overwhelmed,
don't worry, you're not alone.
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Even those who've worked there
can barely comprehend it.
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How do we know?
We tracked down someone who did.
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When I walked into an Amazon
warehouse the first day,
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I was amazed. I felt like
a, you know, almost like a kid
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going to Disney World
for the first time, you know,
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trying to just take it all in.
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No surprise, they're gigantic.
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Known as fulfilment centres,
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they're around a million square feet
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and could swallow
16 football pitches.
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Journalist Harry Wallop
has had rare access to one.
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What need to be in the warehouses
are things people buy every day.
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And that is still a vast number
of weirdly different things.
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There are 175 of these monsters
around the world,
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including 17 in the UK.
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We've heard from the warehouse
floor,
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but how do you run a place
like this?
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Let's ask someone who knows.
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Nadia, take one.
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Nadia Shouraboura
was in charge of all of them.
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My job title was Head of Amazon
Supply Chain and Fulfilment,
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and my role was to lead our fulfilment
centre technology and process,
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to lead our supply chain,
to lead our inventory.
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Everything, basically.
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Nadia soon learned the secret of
the company's incredible logistics —
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taking decision-making
away from humans.
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We trusted computers to make
all the decisions
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on where to move each item,
where to place it.
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The result? Well, to a human,
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it looks like a bit of a mad
jumble sale.
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So you have nail clippers next door
to cookery books,
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next door to protein shakes,
next door to pet food,
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next door to, I don't know,
sunglasses.
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It's just illogical
to normal shoppers,
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but it's part of the secret of how
they can ship stuff so quickly to you.
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When you are in this
16—football—fields building,
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as a human,
you don't know where anything is.
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And it's definitely best
for a computer to direct humans
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on every task they do.
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So, what's it like being directed
by a computer?
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Chris worked as a picker
before becoming a supervisor.
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What does a picker do?
The clue's in the name.
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We have our computer screen
that shows what type of item it is
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and where the location is
on the shelf,
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whether it's, you know, high, low.
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We'll find the item, we'll pick it.
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For Amazon to get stuff to us
as quickly as it does,
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staff and robots in the warehouse
have to work hard and fast.
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They want you to pick these items
in less than seven seconds.
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So by the time the item would come
to my screen,
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I have seven seconds to get this
item, the right item, by the way,
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scan it and then put it in its hole.
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And that's the thing that separates
Amazon from its competitors is,
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you know, we are moving
at a faster pace.
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And they have to keep moving fast
to get your socks, sun cream
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and salad tongs to you
in record time,
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with a transportation network
that's just as computer-driven
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and just as impressive,
until it turns up at your door.
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Amazon has this incredibly
sophisticated logistics company
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with at least 82
of its own aircraft,
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and ultimately, a lot of the
products that are coming to your door
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is some random delivery driver
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who's driving his own battered,
you know, Vauxhall Corsa.
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Why don't they have fancy branded
vans like other companies?
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They realised how cheap it is to
use so-called gig economy workers.
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It's very expensive to hire
proper employees
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with medical and pension
and insurance.
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Don't bother with that!
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Get people to use their own cars,
their own smart phones,
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to be your career drivers.
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That's how they make the system
work for them,
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but how can we make Amazon
work for us?
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We've assembled a crack team
of consumer vloggers
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dedicated to making your money
go further.
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So when it comes to saving money
on Amazon,
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there's a few cunning little tricks
you can try.
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First up, don't head straight
to Amazon.co.uk.
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A tip you may not actually
be aware of is that on Amazon,
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you can actually buy from
the European websites.
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So maybe the Germany site or Italy.
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You may find that one of
the European variants
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may offer the same item
for a reduced price.
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Even when you factor in the extra
delivery cost,
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which is usually
just about five or ten quid.
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On the day we looked, this TV
on the British site cost £379.
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But on the German site, even
with shipping, it was 359.
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A saving of £20.
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And if you are buying on
the UK site,
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don't assume the price you see today
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is the one that will be there
tomorrow.
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They change their prices
millions of times a day.
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Th I rd — party websites,
like Ca melCamelCamel,
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will actually track it for you
and then will send you an email
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once the price is at
its lowest price.
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Although, sometimes you can give
the company
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a little price nudge yourself.
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Try dropping a few items
into your Amazon basket,
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but then just leave them there,
don't hit Buy Now.
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Wait a few clays,
and Amazon might get in touch
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with a special discounted price.
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Finally, don't restrict yourself
to the main website itself.
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There are sections of the site
selling second-hand
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and ex—display goods,
often at bargain prices.
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If you're looking for products
that are maybe big-ticket items,
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electronics, then there's
websites within Amazon.
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So Warehouse, Outlet, Renewed.
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There's websites within it
that actually,
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the prices could be up to 90%
cheapen
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For example, on the day we looked,
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we found this sat nav for £232
on Warehouse.
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A saving of over £100
from other retailers.
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Just because it had a couple
of scratches on the back.
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So it's well worth doing
a little dig around
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when you want to buy
those big-ticket items.
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Coming up... We go back
to the very beginning
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to discover how Amazon grew from
an online book store
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run by a computer geek...
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He was just an unassuming, small,
sandy-haired person at a desk.
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...to the biggest online retailer
in the world.
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I was part of a secret project
called EBS,
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which stood for
Earth's Biggest Store.
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In just 25 years, Amazon
have transformed the way we shop.
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Unlimited choice, next-day delivery,
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this is the company that have made
instant gratification the norm.
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Sash? Yeah? You ordered any parcels?
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We are the Mitchell-Johnsons,
we're from Leicestershire.
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Our family are Amazon lovers.
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What we got, what we got,
what we got? Argh!
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I think we literally do have
nearly all of the Amazon devices.
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What is it that you're reading?
Mind-set book.
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What you doing, Mimi?
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I'm watching Lego Friends.
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I'd definitely say I've got a bit
of an addiction to Amazon.
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LAUGHTER
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Definitely a parcel
every single day.
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It's the way the world is moving
now.
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I think it's been quite
life-changing.
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Yeah, definitely. For me.
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Yeah.
SHE LAUGHS
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For all of us. Yeah.
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Five today, so not too many.
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Oh, my God, there's so much stuff!
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OK. This is all for me?
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No, it's not.
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Perhaps it's no surprise the company
made almost £14 billion
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from us Brits in 2019 alone.
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Want to know how on earth
we got here?
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OK, let's take a trip back in time.
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CHEERING
It's 1993.
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00:11:34,549 --> 00:11:37,854
Man United have become the first
Premier League champions.
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00:11:37,879 --> 00:11:40,984
Ford has just brought out
the Mondeo.
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00:11:42,438 --> 00:11:46,493
And in New York, a computer nerd
by the name of Jeff Bezos
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is on the cusp of changing
the world.
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00:11:51,159 --> 00:11:54,373
He was a young, successful
Wall Street executive
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at one of the top hedge funds
in the city.
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00:11:57,188 --> 00:12:01,094
He was just brilliant with numbers,
he loved data.
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One number in particular
would spark his interest
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00:12:05,518 --> 00:12:08,493
and eventually make him
the world's richest man.
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What was that number?
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00:12:10,729 --> 00:12:14,054
In this rarely-seen interview,
he tells us himself.
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00:12:14,079 --> 00:12:17,373
I was in New York City working
for a quantitative hedge fund
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00:12:17,398 --> 00:12:19,574
when I came across
the startling statistic
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that web usage was growing
at 2,300% a year.
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00:12:22,879 --> 00:12:25,623
So I decided I would try and find
a business plan
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00:12:25,648 --> 00:12:27,884
that made sense
in the context of that growth.
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His vision, to create an online shop
for everything.
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00:12:35,079 --> 00:12:39,014
But he couldn't go from nothing
to everything all at once.
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He started by selling one product.
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One with huge potential.
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Books are attractive to an internet
retailer for a couple of reasons.
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Not only are they sort of small
and light and easy to ship,
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00:12:52,039 --> 00:12:54,904
but also, there's such a huge number
of books.
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00:12:54,929 --> 00:12:59,704
And Bezos realised that the internet
could have all of that inventory.
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There was nothing stopping you
because size was no limit.
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00:13:06,188 --> 00:13:08,934
In 1994, Bezos and his wife
MacKenzie,
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00:13:08,959 --> 00:13:11,214
moved to Seattle
to start the business.
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00:13:12,549 --> 00:13:17,014
But what do you do when you need
$250,000 to get up and running?
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00:13:17,039 --> 00:13:22,214
If you're Bezos, you ask mum and dad
to raid their retirement savings,
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which they did.
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00:13:23,929 --> 00:13:27,214
And in 1995, Amazon.com was born.
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00:13:27,239 --> 00:13:30,094
But who would help it grow?
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00:13:31,159 --> 00:13:33,934
People like this man, James Marcus,
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00:13:33,959 --> 00:13:37,214
otherwise known as Employee 55.
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His job? To write reviews
of the books on the site.
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00:13:41,799 --> 00:13:46,014
I started at Amazon
in the fall of 1996.
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00:13:46,039 --> 00:13:49,014
The headquarters was in a
light, industrial part of Seattle
240
00:13:49,039 --> 00:13:50,694
next to a barbecue joint.
241
00:13:50,719 --> 00:13:52,904
And I was interviewed by Jeff Bezos.
242
00:13:52,929 --> 00:13:54,344
It was a small enough company
243
00:13:54,369 --> 00:13:56,804
that he interviewed
every prospective employee.
244
00:13:57,959 --> 00:14:02,163
What was this legendary figure like
in the flesh?
245
00:14:02,188 --> 00:14:05,344
It amazes me now to think that
he's the richest man in the world,
246
00:14:05,369 --> 00:14:07,984
he's sort of a plutocratic
action figure
247
00:14:08,009 --> 00:14:09,824
who runs just about everything.
248
00:14:09,849 --> 00:14:13,004
He was just an unassuming, small,
249
00:14:13,029 --> 00:14:15,114
sandy-haired person at a desk.
250
00:14:16,979 --> 00:14:21,674
But the unassuming exterior
hid a ruthless business mind
251
00:14:21,699 --> 00:14:23,594
developing ideas to make his company
252
00:14:23,619 --> 00:14:25,924
one of the biggest
the world has ever seen.
253
00:14:27,899 --> 00:14:30,234
First up, aggressive pricing.
254
00:14:31,949 --> 00:14:34,563
It was probably within a few weeks
of my arrival
255
00:14:34,588 --> 00:14:38,754
that they decided to deeply discount
New York Times' bestsellers.
256
00:14:38,779 --> 00:14:41,824
In an interview for a tech website,
257
00:14:41,849 --> 00:14:45,154
Bezos made no secret of his plans.
258
00:14:45,179 --> 00:14:48,393
So we decided, let's, in addition
to discounting the bestsellers,
259
00:14:48,418 --> 00:14:49,954
let's also discount the best books.
260
00:14:49,979 --> 00:14:51,874
So we discount every book every week
261
00:14:51,899 --> 00:14:54,563
that's reviewed
in The New York Times by 30%.
262
00:14:57,259 --> 00:15:00,954
The discounts were a huge success
and orders rocketed.
263
00:15:00,979 --> 00:15:03,313
But to guarantee meeting
such high demand
264
00:15:03,338 --> 00:15:05,824
required a change
in company thinking.
265
00:15:05,849 --> 00:15:08,074
Till now, it had been acting
as a middleman,
266
00:15:08,099 --> 00:15:11,364
sourcing books for customers
from wholesalers.
267
00:15:11,389 --> 00:15:13,004
Not any more.
268
00:15:14,379 --> 00:15:17,074
Because to be able to fulfil
all the books they were selling
269
00:15:17,099 --> 00:15:19,284
at these, you know,
mind-bending discounts,
270
00:15:19,309 --> 00:15:21,714
you better have had some inventory
on hand.
271
00:15:21,739 --> 00:15:24,643
So somewhat against its will,
you could say,
272
00:15:24,668 --> 00:15:27,924
Amazon was dragged more into being
a traditional retailer
273
00:15:27,949 --> 00:15:32,313
with big heaps of, you know, the new
Harry Potter book in a warehouse.
274
00:15:32,338 --> 00:15:37,034
Out of necessity, the first of
Amazon's giant warehouses was born.
275
00:15:37,059 --> 00:15:41,050
Soon, it was conquering
the whole book-publishing industry.
276
00:15:41,075 --> 00:15:44,060
But Bezos was only just
getting started.
277
00:15:45,404 --> 00:15:48,140
It was clear that there was
something more afoot
278
00:15:48,165 --> 00:15:49,450
than just selling books.
279
00:15:49,475 --> 00:15:51,169
It was the thin edge of the wedge
280
00:15:51,194 --> 00:15:54,580
to have a gigantic enterprise
that sold everything to everybody.
281
00:15:54,605 --> 00:15:57,499
Amazon was predominantly
a book-seller
282
00:15:57,524 --> 00:15:59,580
through much of the 1990s,
283
00:15:59,605 --> 00:16:02,060
but then it really started
to spread out.
284
00:16:03,324 --> 00:16:06,020
Music, films, software and toys,
285
00:16:06,045 --> 00:16:07,629
they all went online.
286
00:16:07,654 --> 00:16:10,270
And soon, we could buy them, too,
287
00:16:10,295 --> 00:16:14,810
as the company set up websites
in Germany and the UK.
288
00:16:14,835 --> 00:16:17,780
1998 is a really big year
in Britain for the internet.
289
00:16:17,805 --> 00:16:21,700
Amazon comes along, and I don't
think we were aware then
290
00:16:21,725 --> 00:16:24,629
of how big a deal it was going
to become.
291
00:16:24,654 --> 00:16:26,580
No surprise there.
292
00:16:26,605 --> 00:16:29,090
Even insiders could barely keep up.
293
00:16:30,574 --> 00:16:34,780
It was dizzying, actually, to be
a passenger in this juggernaut.
294
00:16:34,805 --> 00:16:37,629
Relentless growth had to be
taking place all the time.
295
00:16:37,654 --> 00:16:41,270
The expansionist impulse
had to be in play every single day.
296
00:16:42,685 --> 00:16:45,419
But there was one thing
that mattered above all else.
297
00:16:47,475 --> 00:16:49,220
Hi, good morning.
298
00:16:49,245 --> 00:16:51,060
Hi, how are you? I'm good.
299
00:16:51,085 --> 00:16:52,980
One thing that Vi jay Ravindran,
300
00:16:53,005 --> 00:16:55,910
who was in charge of all the selling
technology on the website,
301
00:16:55,935 --> 00:16:57,340
has never forgotten.
302
00:16:59,404 --> 00:17:03,299
The culture of Amazon, which,
you know, really originates
303
00:17:03,324 --> 00:17:07,220
from...from Jeff, starts with
obsessing about customers.
304
00:17:07,245 --> 00:17:09,549
You know, you should wake
up in the morning fearful
305
00:17:09,574 --> 00:17:11,299
that your customers
are going to leave you.
306
00:17:12,935 --> 00:17:17,270
To stop us leaving, Bezos was
convinced he needed to know us better.
307
00:17:18,444 --> 00:17:19,910
Much better.
308
00:17:19,935 --> 00:17:23,419
And the key to that was analysing
all the personal information
309
00:17:23,444 --> 00:17:26,379
we still willingly
enter into the site.
310
00:17:28,885 --> 00:17:31,450
At the centre of all this
data mining,
311
00:17:31,475 --> 00:17:34,060
this man, Andreas Weigend.
312
00:17:36,404 --> 00:17:39,780
When people asked me
why I went to Amazon, I said,
313
00:17:39,805 --> 00:17:42,810
it's really the largest lab
in the world.
314
00:17:42,835 --> 00:17:48,140
Because we could collect data about
millions and millions of people.
315
00:17:48,165 --> 00:17:51,629
And the purpose then was to sell
them more.
316
00:17:51,654 --> 00:17:54,940
Nothing more and nothing less.
317
00:17:54,965 --> 00:17:58,660
It was made clear, though,
that every click of the mouse
318
00:17:58,685 --> 00:18:02,020
and every twist and turn through
the site as a customer navigated
319
00:18:02,045 --> 00:18:06,780
was being saved and being added to
a sort of a mountain range of data,
320
00:18:06,805 --> 00:18:08,940
and that that was going to be
useful.
321
00:18:08,965 --> 00:18:11,450
It was the search terms you enter.
322
00:18:11,475 --> 00:18:15,220
The sequence of search terms,
how you refined your searches.
323
00:18:15,245 --> 00:18:18,700
It was what time of the day
you were looking for something.
324
00:18:18,725 --> 00:18:20,910
Any data you can think of.
325
00:18:22,654 --> 00:18:24,660
What did they use it all for?
326
00:18:24,685 --> 00:18:26,580
Recommendations.
327
00:18:26,605 --> 00:18:29,340
They were the first to master
the technique of suggesting
328
00:18:29,365 --> 00:18:32,580
to consumers other purchases
they might like.
329
00:18:32,605 --> 00:18:36,499
And they did it using information
from millions of other shoppers
330
00:18:36,524 --> 00:18:39,090
who were buying the same sort of
stuff you were.
331
00:18:42,725 --> 00:18:46,980
As Bezos collected more and more
data on his customers,
332
00:18:47,005 --> 00:18:49,700
he got smarter and smarter
333
00:18:49,725 --> 00:18:53,090
in terms of recommending products
to his customers.
334
00:18:53,115 --> 00:18:56,190
Today, almost a third of
Amazon sales
335
00:18:56,215 --> 00:19:00,419
are based on it recommending
products to them.
336
00:19:00,444 --> 00:19:04,220
We actually did not think
about it as manipulation.
337
00:19:04,245 --> 00:19:08,730
We genuinely thought to help them
come up with better decisions.
338
00:19:11,685 --> 00:19:16,060
For better decisions,
read "buying more on Amazon".
339
00:19:16,085 --> 00:19:20,580
By 1999, it was the biggest
online retailer in the world.
340
00:19:21,644 --> 00:19:24,910
Not enough for Bezos, who was
already plotting a new move
341
00:19:24,935 --> 00:19:27,700
that would take his company
stratospheric.
342
00:19:30,475 --> 00:19:32,060
I was part of a very small team
343
00:19:32,085 --> 00:19:35,299
that was sequestered on the
fourth floor of Amazon's building,
344
00:19:35,324 --> 00:19:37,730
working on a secret project
called EBS,
345
00:19:37,755 --> 00:19:39,940
which stood for
Earth's Biggest Store.
346
00:19:39,965 --> 00:19:43,220
At the time, we believed we could do
anything in the world.
347
00:19:45,685 --> 00:19:48,140
That's a bit arrogant, isn't it?
348
00:19:48,165 --> 00:19:49,580
Not when your Amazon.
349
00:19:49,605 --> 00:19:53,270
The genius plan was to massively
increase the products on offer
350
00:19:53,295 --> 00:19:57,140
by letting other rival sellers
on to the website.
351
00:19:57,165 --> 00:20:00,960
Before, Amazon had been like
an online department store.
352
00:20:00,985 --> 00:20:03,920
Lots of stock, but all sold by
the same company.
353
00:20:05,275 --> 00:20:08,599
Now it would be a marketplace,
with items from Amazon
354
00:20:08,624 --> 00:20:11,810
and other sellers on the same page.
355
00:20:11,835 --> 00:20:13,810
Some doubted it would work,
356
00:20:13,835 --> 00:20:17,430
but it attracted customers
in their millions.
357
00:20:17,455 --> 00:20:21,760
If you offer anyone,
from a sofa manufacturer,
358
00:20:21,785 --> 00:20:24,240
a specialist fishing tackle shop,
359
00:20:24,265 --> 00:20:27,320
a specialist camera lighting
company,
360
00:20:27,345 --> 00:20:32,349
you can say to shoppers, "Come to Amazon
and you will find anything you need".
361
00:20:32,374 --> 00:20:34,560
And that turned out to be a fabulous
idea, too,
362
00:20:34,585 --> 00:20:37,120
because you know, Amazon takes a cut
of every sale,
363
00:20:37,145 --> 00:20:39,680
but they don't have to run
those stores.
364
00:20:39,705 --> 00:20:41,349
They don't have to run
those businesses.
365
00:20:41,374 --> 00:20:45,349
It's an immensely lucrative
intermediary business.
366
00:20:47,504 --> 00:20:50,320
Thousands of businesses
desperate to sell online
367
00:20:50,345 --> 00:20:52,479
leapt at the opportunity
Bezos gave them
368
00:20:52,504 --> 00:20:55,070
when Marketplace launched in 2000.
369
00:20:56,785 --> 00:21:00,090
Today, 60% of the products
available on the website
370
00:21:00,115 --> 00:21:02,200
are sold by external businesses.
371
00:21:04,985 --> 00:21:08,349
Marketplace was a huge game changer
for Amazon.
372
00:21:08,374 --> 00:21:10,640
Our appetite for online shopping
373
00:21:10,665 --> 00:21:14,170
would not have grown to the size
it has become
374
00:21:14,195 --> 00:21:16,450
without Amazon leading the way.
375
00:21:16,475 --> 00:21:18,070
A consistent buying experience,
376
00:21:18,095 --> 00:21:20,640
enabling more selection
and lower prices,
377
00:21:20,665 --> 00:21:23,200
that ended up being the Amazon
that you see today.
378
00:21:24,865 --> 00:21:29,040
For many companies, the cut of up to
15% that Amazon takes
379
00:21:29,065 --> 00:21:30,430
is worth paying-
380
00:21:31,665 --> 00:21:34,349
They gain access to
an online marketplace,
381
00:21:34,374 --> 00:21:38,840
a delivery system and an unlimited
number of customers.
382
00:21:38,865 --> 00:21:40,560
Not convinced?
383
00:21:40,585 --> 00:21:42,450
Hello, Creative Nature?
384
00:21:42,475 --> 00:21:44,990
Then you should meet Julianne.
385
00:21:45,015 --> 00:21:47,920
So this one over here is
the banana bread.
386
00:21:47,945 --> 00:21:50,120
It's been the most successful,
387
00:21:50,145 --> 00:21:53,279
especially on Amazon
and across the country, really.
388
00:21:53,304 --> 00:21:55,529
Everyone was baking banana bread.
389
00:21:56,985 --> 00:21:59,630
Her company sells a range
of allergen-free products,
390
00:21:59,655 --> 00:22:01,529
like these baking mixes.
391
00:22:01,554 --> 00:22:04,090
Before the COV|D—19 pandemic,
392
00:22:04,115 --> 00:22:06,760
she had some of her stock
on the website.
393
00:22:06,785 --> 00:22:09,810
But when lockdown hit sales
elsewhere,
394
00:22:09,835 --> 00:22:12,070
she put much more online,
395
00:22:12,095 --> 00:22:14,680
and was stunned by the result.
396
00:22:14,705 --> 00:22:17,320
We grew on Amazon over 650%
397
00:22:17,345 --> 00:22:20,120
just in those three to four months.
398
00:22:20,145 --> 00:22:24,450
That growth is incredible
for a small business like mine.
399
00:22:24,475 --> 00:22:27,990
Now she's planning to expand
internationally.
400
00:22:28,015 --> 00:22:31,560
Marketplace has made it very easy
for a company like mine
401
00:22:31,585 --> 00:22:33,990
to get into the US, Germany,
402
00:22:34,015 --> 00:22:37,120
without having to have
the infrastructure in place,
403
00:22:37,145 --> 00:22:39,240
huge teams, which cost
a lot of money.
404
00:22:40,865 --> 00:22:43,040
Julianne also trades elsewhere,
405
00:22:43,065 --> 00:22:46,599
because putting all your eggs
in the Amazon basket can be risky.
406
00:22:49,475 --> 00:22:51,630
If it was to switch off overnight,
407
00:22:51,655 --> 00:22:54,710
it would feel like the rug's
being pulled out from under you,
408
00:22:54,735 --> 00:22:58,349
especially when your success
has been so phenomenal and so quick.
409
00:23:00,195 --> 00:23:04,399
But there are claims some companies
have had a sudden decrease in sales,
410
00:23:04,424 --> 00:23:08,729
all because of unfair competition
from Amazon themselves.
411
00:23:10,145 --> 00:23:11,399
Amazon under pressure.
412
00:23:11,424 --> 00:23:14,399
State investigators from California
and Washington State
413
00:23:14,424 --> 00:23:17,760
reportedly looking into
the tech giant's business practises,
414
00:23:17,785 --> 00:23:21,279
particularly how the company treats
third-party sellers
415
00:23:21,304 --> 00:23:22,960
in its online marketplace.
416
00:23:22,985 --> 00:23:26,279
The problem is,
if you're a third—party seller,
417
00:23:26,304 --> 00:23:29,760
the information on the marketplace
about who's buying your products,
418
00:23:29,785 --> 00:23:32,399
where they're from,
what other things they like,
419
00:23:32,424 --> 00:23:34,730
it's all controlled by Amazon.
420
00:23:36,365 --> 00:23:39,289
We know that many
marketplace sellers
421
00:23:39,314 --> 00:23:43,539
believe that their information
is ripped off by Amazon.
422
00:23:43,564 --> 00:23:45,730
That when they have
a hugely-successful product,
423
00:23:45,755 --> 00:23:48,060
Amazon can undercut
the marketplace seller.
424
00:23:49,495 --> 00:23:52,010
And the EU authorities agree.
425
00:23:52,035 --> 00:23:56,780
In November 2020, they charged
Amazon with using third—party data
426
00:23:56,805 --> 00:23:59,369
to boost sales of its products.
427
00:23:59,394 --> 00:24:03,140
There are questions that are being
raised by the European Commission
428
00:24:03,165 --> 00:24:07,190
and other authorities as to,
you know, is that fair?
429
00:24:07,215 --> 00:24:08,580
Is that fair competition
430
00:24:08,605 --> 00:24:11,140
if Amazon is both operating
the marketplace
431
00:24:11,165 --> 00:24:13,340
and competing on that
same marketplace
432
00:24:13,365 --> 00:24:16,470
with a privileged situation
of having the access to the data
433
00:24:16,495 --> 00:24:19,419
that none of the other competitors
have?
434
00:24:19,444 --> 00:24:24,539
If found guilty, the company
could be fined billions.
435
00:24:24,564 --> 00:24:25,980
Amazon told us:
436
00:24:50,245 --> 00:24:53,650
Coming up... We find out how Bezos
killed the competition.
437
00:24:53,675 --> 00:24:55,499
By being ruthless...
438
00:24:55,524 --> 00:24:57,010
He just wants to win.
439
00:24:57,035 --> 00:24:59,780
You don't get to be worth
$200 billion
440
00:24:59,805 --> 00:25:02,419
by being a nice guy in business,
right?
441
00:25:02,444 --> 00:25:04,749
...doing the unexpected...
442
00:25:04,774 --> 00:25:08,940
Prime is an idea that was absolutely
crazy when it was launched.
443
00:25:08,965 --> 00:25:11,580
...and driving staff to the limit.
444
00:25:11,605 --> 00:25:14,369
You know, you can't be safe
and work as hard as you do.
445
00:25:14,394 --> 00:25:17,060
And unfortunately,
people did get injured.
446
00:25:27,375 --> 00:25:30,220
Today, Amazon dominates
online shopping.
447
00:25:32,685 --> 00:25:36,530
Almost half of all internet sales
happen on their website.
448
00:25:39,375 --> 00:25:43,140
From stuff you'd imagine,
like 80% of books and music...
449
00:25:44,734 --> 00:25:48,530
...to stuff you wouldn't,
like 16% of car parts.
450
00:25:49,734 --> 00:25:55,140
Amazon is one of the most efficient
capitalistic machines in history.
451
00:25:55,165 --> 00:25:56,820
DOORBELL
452
00:25:56,845 --> 00:26:02,709
It is growing at a rate almost
unheard of for a company that size.
453
00:26:02,734 --> 00:26:06,579
It is moving into industry
after industry.
454
00:26:06,604 --> 00:26:08,499
And as a businessperson,
455
00:26:08,524 --> 00:26:11,860
if you're not aware of what Amazon
is doing, you should be,
456
00:26:11,885 --> 00:26:15,459
because before long, it might be
knocking on your door
457
00:26:17,274 --> 00:26:22,350
And be under no illusions,
this is a retailer playing to win.
458
00:26:22,375 --> 00:26:26,579
Amazon's managed to grow
as fast and as quickly as it has
459
00:26:26,604 --> 00:26:31,249
by not only being relentless,
but being quite ruthless.
460
00:26:31,274 --> 00:26:35,350
They have been known to undercut
the competition
461
00:26:35,375 --> 00:26:38,709
from the time that it was just
a book-seller through to now.
462
00:26:38,734 --> 00:26:42,020
They would price—cut these companies
into submission.
463
00:26:42,045 --> 00:26:44,379
Having impossibly deep pockets,
464
00:26:44,404 --> 00:26:47,420
and when they were sufficiently
feeble from lack of money,
465
00:26:47,445 --> 00:26:48,740
they would acquire them.
466
00:26:50,085 --> 00:26:52,140
To pull off this plan successfully,
467
00:26:52,165 --> 00:26:55,020
Company boss Jeff Bezos
and his investors
468
00:26:55,045 --> 00:26:57,990
were prepared to make
massive losses.
469
00:26:58,015 --> 00:27:02,530
He was willing to lose money
on certain products,
470
00:27:02,555 --> 00:27:05,740
until he hurt his competitors.
471
00:27:05,765 --> 00:27:07,810
I mean, he just wants to win.
472
00:27:07,835 --> 00:27:10,379
You don't get to be worth
$200 billion
473
00:27:10,404 --> 00:27:13,060
by being a nice guy in business,
right?
474
00:27:14,965 --> 00:27:18,420
For the best part of two decades,
most of its existence,
475
00:27:18,445 --> 00:27:22,080
the company failed to make
any money at all.
476
00:27:22,105 --> 00:27:28,440
Well, Amazon.com was actually
profitable in December 1995.
477
00:27:28,465 --> 00:27:30,599
It must have been for, oh,
about one hour.
478
00:27:30,624 --> 00:27:32,649
LAUGHTER
479
00:27:32,674 --> 00:27:37,880
According to former senior exec
James Thomson, Jeff Bezos' talent
480
00:27:37,905 --> 00:27:40,880
was persuading investors
it was all part of the plan.
481
00:27:42,855 --> 00:27:45,040
He managed to convince Wall Street
482
00:27:45,065 --> 00:27:48,800
to let him be unprofitable
for literally 20 years.
483
00:27:48,825 --> 00:27:50,760
The fact that Jeff Bezos was able
to get
484
00:27:50,785 --> 00:27:54,760
literally hundreds of billions
of dollars to go and play with
485
00:27:54,785 --> 00:27:58,760
and take his vision and implement
it, that was brilliant.
486
00:28:00,465 --> 00:28:03,469
It doesn't feel brilliant
if you're at the hard end
487
00:28:03,494 --> 00:28:07,040
of all this price cutting.
It feels unfair.
488
00:28:07,065 --> 00:28:09,880
Just ask Jason Burley
and Sam Fisher,
489
00:28:09,905 --> 00:28:13,269
who run a book shop in Dalston,
East London.
490
00:28:13,294 --> 00:28:16,910
It was a shock. It was a real shock
when Amazon came.
491
00:28:16,935 --> 00:28:19,010
It felt like from now on,
492
00:28:19,035 --> 00:28:22,320
if you wanted to earn a living
selling books,
493
00:28:22,345 --> 00:28:26,519
it was going to be in spite of
Amazon, never because of Amazon.
494
00:28:26,544 --> 00:28:30,010
They always felt aggressive.
495
00:28:30,035 --> 00:28:33,120
One of the prime examples
were the Harry Potter novels,
496
00:28:33,145 --> 00:28:35,080
which were a publishing sensation.
497
00:28:35,105 --> 00:28:38,519
Unfortunately, Amazon
was selling them cheaper
498
00:28:38,544 --> 00:28:42,190
than independent book-sellers could
buy them from their wholesalers.
499
00:28:42,215 --> 00:28:46,080
And it was really such a heartache
for us
500
00:28:46,105 --> 00:28:48,080
because we were meeting
new customers,
501
00:28:48,105 --> 00:28:50,320
we were luring new customers
into our book shop.
502
00:28:50,345 --> 00:28:53,240
How could we do that if we were
charging twice as much as Amazon?
503
00:28:53,265 --> 00:28:56,320
It was a nightmare, really.
And that was just one example.
504
00:28:56,345 --> 00:28:59,910
Amazon managed to do that
perpetually for every bestseller.
505
00:29:02,345 --> 00:29:07,370
Since 1995, half of the UK's
book stores have closed.
506
00:29:07,395 --> 00:29:10,469
Survivors like this
have had to adapt,
507
00:29:10,494 --> 00:29:14,719
selling coffee and organising
events, as well as selling books.
508
00:29:14,744 --> 00:29:17,519
But Amazon's aggressive pricing
has had knock-on effects
509
00:29:17,544 --> 00:29:19,519
throughout the entire industry.
510
00:29:21,744 --> 00:29:23,599
If we're not buying things
at a price
511
00:29:23,624 --> 00:29:25,830
that will sustain
our cultural industries,
512
00:29:25,855 --> 00:29:28,269
then those cultural industries
will die.
513
00:29:28,294 --> 00:29:31,320
And that's a fact.
That's the long-term cost.
514
00:29:32,935 --> 00:29:35,960
When we asked them about whether
they undercut competitors,
515
00:29:35,985 --> 00:29:39,190
even if it meant taking losses,
Amazon told us:
516
00:29:47,135 --> 00:29:49,080
It said its third—party sellers:
517
00:29:51,855 --> 00:29:53,020
And it was:
518
00:29:59,245 --> 00:30:03,020
Amazon gave book shops
another body blow with this.
519
00:30:03,045 --> 00:30:05,699
The Kindle reached our shores
in 2010
520
00:30:05,724 --> 00:30:09,420
and let users instantly download
up to 200 books
521
00:30:09,445 --> 00:30:12,579
on to a device not much bigger than
a pamphlet.
522
00:30:12,604 --> 00:30:17,220
Sales of physical books
plummeted 9% a year.
523
00:30:17,245 --> 00:30:21,699
And by 2010, the company was selling
more e-books than hardbacks.
524
00:30:23,015 --> 00:30:24,629
But it was another innovation
525
00:30:24,654 --> 00:30:27,940
that would take Amazon
to an entirely new level.
526
00:30:29,575 --> 00:30:32,160
An idea built around
speedy delivery.
527
00:30:33,965 --> 00:30:36,499
You'll recognise the name.
528
00:30:36,524 --> 00:30:40,740
Amazon Prime started as
a membership program me
529
00:30:40,765 --> 00:30:43,220
that enabled free two—day shipping
530
00:30:43,245 --> 00:30:45,420
and discounted next-day shipping
531
00:30:45,445 --> 00:30:48,780
on initially, a constrictive
set of retail items
532
00:30:48,805 --> 00:30:50,270
that could be shipped quickly.
533
00:30:51,805 --> 00:30:55,579
When one of Vi jay's colleagues
suggested the scheme in 2005,
534
00:30:55,604 --> 00:30:58,399
Bezos could barely contain
his excitement,
535
00:30:58,424 --> 00:31:02,629
and called his team to an urgent
meeting at his boathouse.
536
00:31:02,654 --> 00:31:06,140
It was much larger than my
two—bedroom condo, I'll tell you.
537
00:31:06,165 --> 00:31:07,420
It was beautiful.
538
00:31:07,445 --> 00:31:12,300
It had a fully—enclosed
garage parking spot for his boat
539
00:31:12,325 --> 00:31:14,340
that was viewable through glass,
540
00:31:14,365 --> 00:31:16,170
and, er...it was gorgeous.
541
00:31:17,604 --> 00:31:20,300
Bezos told them he wanted
to go full steam ahead
542
00:31:20,325 --> 00:31:21,860
with the free delivery club.
543
00:31:23,165 --> 00:31:28,020
He thought once two—day shipping
became a natural expectation,
544
00:31:28,045 --> 00:31:30,379
that suddenly, things that
you wouldn't normally
545
00:31:30,404 --> 00:31:33,090
think about Amazon for,
you would buy.
546
00:31:34,654 --> 00:31:37,810
But, not for the first time,
there was resistance
547
00:31:37,835 --> 00:31:40,020
to a Bezos plan within the company.
548
00:31:40,045 --> 00:31:42,449
Some believed that promising
free deliveries
549
00:31:42,474 --> 00:31:44,860
would prove too expensive.
550
00:31:44,885 --> 00:31:49,629
Prime is an idea that was absolutely
crazy when it was launched.
551
00:31:49,654 --> 00:31:53,050
Let's let customers buy
as much as they want
552
00:31:53,075 --> 00:31:55,760
across as many orders
as they want in one year,
553
00:31:55,785 --> 00:31:58,150
and we'll just charge them
a single flat amount.
554
00:31:58,175 --> 00:32:00,639
And we'll figure out
how the economics work
555
00:32:00,664 --> 00:32:03,740
to ensure that we actually
still make money.
556
00:32:03,765 --> 00:32:08,100
There was a lot of fear that this
would have disastrous effects.
557
00:32:10,095 --> 00:32:11,990
Bezos thought it would make money,
558
00:32:12,015 --> 00:32:15,389
but not if he ran out of stuff
to sell us.
559
00:32:15,414 --> 00:32:19,459
To meet increased demand,
he'd need more stock and more space.
560
00:32:19,484 --> 00:32:23,050
So he started a massive
building program me.
561
00:32:23,075 --> 00:32:25,920
In the five years
following the launch of the club,
562
00:32:25,945 --> 00:32:29,639
Amazon's warehouse space
increased nine fold.
563
00:32:31,055 --> 00:32:32,820
The investment paid off.
564
00:32:32,845 --> 00:32:36,230
Prime, which came to the UK in 2007,
565
00:32:36,255 --> 00:32:38,150
is a worldwide phenomenon.
566
00:32:39,414 --> 00:32:42,670
Only Netflix has more subscribers.
567
00:32:42,695 --> 00:32:48,350
Prime has been the most successful
retailing membership program me
568
00:32:48,375 --> 00:32:50,900
in the history of the world.
569
00:32:50,925 --> 00:32:53,950
Just two years ago, Amazon had
570
00:32:53,975 --> 00:32:56,589
100—million Prime members
around the world.
571
00:32:56,614 --> 00:32:59,030
Today, they have over 150 million.
572
00:33:00,414 --> 00:33:04,070
More than 15 million of them
are in the UK.
573
00:33:04,095 --> 00:33:07,379
A quarter of the adult population.
574
00:33:07,404 --> 00:33:11,709
Attracted by delivery that's been
reduced to one day on many items
575
00:33:11,734 --> 00:33:14,950
and as quick as two hours
in some cities.
576
00:33:14,975 --> 00:33:17,609
Bezos had proved the doubters wrong.
577
00:33:17,634 --> 00:33:20,170
The membership scheme
didn't lose money.
578
00:33:20,195 --> 00:33:21,540
Earnings rocketed.
579
00:33:21,565 --> 00:33:26,430
Because after joining the club,
customers started to buy more.
580
00:33:27,695 --> 00:33:29,430
Once someone signed up for Prime,
581
00:33:29,455 --> 00:33:31,670
their buying behaviour
drastically changed
582
00:33:31,695 --> 00:33:34,150
and they became heavier
Amazon shoppers.
583
00:33:34,175 --> 00:33:37,350
You're just so used to ordering
on Prime because you're a member
584
00:33:37,375 --> 00:33:39,950
that you think, I'm not going
to bother taking the time
585
00:33:39,975 --> 00:33:42,670
to see how much it costs
on some other site.
586
00:33:44,015 --> 00:33:47,890
And membership gained a new
attraction, video streaming,
587
00:33:47,915 --> 00:33:51,180
hitting the UK in 2014.
588
00:33:51,205 --> 00:33:55,280
The Internet giant started making
TV shows and films,
589
00:33:55,305 --> 00:33:58,100
which enticed more people
to become members.
590
00:34:00,945 --> 00:34:02,990
But for all the flashy video,
591
00:34:03,015 --> 00:34:06,310
the driving force of Prime
was always speed.
592
00:34:06,335 --> 00:34:09,100
Though at what cost?
593
00:34:09,125 --> 00:34:11,379
What do we want?!
ALL: Recognition!
594
00:34:11,404 --> 00:34:12,950
When do we want it?! Now!
595
00:34:12,975 --> 00:34:14,280
What do we want?!
596
00:34:14,305 --> 00:34:16,280
Across the world,
workers have been protesting
597
00:34:16,305 --> 00:34:20,430
that the obsession with speed comes
at the expense of their well being.
598
00:34:21,614 --> 00:34:24,820
One of the key things with Amazon
is that they've come to represent
599
00:34:24,845 --> 00:34:27,865
all that is bad about the modern
warehouse economy.
600
00:34:27,890 --> 00:34:30,250
Where all the workers are being
monitored
601
00:34:30,275 --> 00:34:33,250
every single minute of the day on
whether they're hitting targets.
602
00:34:36,225 --> 00:34:39,070
You know, you can't be safe
and work as hard as you do.
603
00:34:39,095 --> 00:34:41,810
And unfortunately,
people did get injured.
604
00:34:41,835 --> 00:34:45,780
Chris and others say it's impossible
to take adequate breaks
605
00:34:45,805 --> 00:34:48,860
in Amazon's enormous warehouses.
606
00:34:48,885 --> 00:34:50,810
I would have to tell people,
like, you know,
607
00:34:50,835 --> 00:34:53,170
"You have 15 minutes,
but you don't have 15 minutes".
608
00:34:53,195 --> 00:34:55,499
It takes ten minutes
to get to the bathroom
609
00:34:55,524 --> 00:34:57,340
or to get to the cafeteria.
610
00:34:57,365 --> 00:35:00,060
ALL: Shut it down!
611
00:35:00,085 --> 00:35:02,660
This year, Chris led protests
in America
612
00:35:02,685 --> 00:35:05,300
over safety concerns
surrounding Covid.
613
00:35:05,325 --> 00:35:08,810
This man slept in his car
for five clays straight.
614
00:35:08,835 --> 00:35:12,619
He was later fired by Amazon
over claims he had breached
615
00:35:12,644 --> 00:35:15,090
social—distancing guidelines
multiple times.
616
00:35:17,195 --> 00:35:20,300
But his concerns over working
conditions pre-pandemic
617
00:35:20,325 --> 00:35:23,010
have been echoed in the UK.
618
00:35:23,035 --> 00:35:27,090
For three weeks in 2016,
James Blood worth worked undercover
619
00:35:27,115 --> 00:35:30,579
at an Amazon warehouse
in Staffordshire.
620
00:35:30,604 --> 00:35:32,499
There was a real atmosphere of fear.
621
00:35:32,524 --> 00:35:34,369
Most people were
receiving disciplinaries
622
00:35:34,394 --> 00:35:35,780
for very small things.
623
00:35:35,805 --> 00:35:37,619
So if you took too long
going to the toilet,
624
00:35:37,644 --> 00:35:39,140
you'd receive a disciplinary.
625
00:35:39,165 --> 00:35:41,980
If you had a day off sick,
you'd receive a disciplinary.
626
00:35:42,005 --> 00:35:44,420
If you were talking to one
of your co-workers,
627
00:35:44,445 --> 00:35:46,060
you could be disciplined for this.
628
00:35:46,085 --> 00:35:48,810
And if you received six of these,
you'd lose your job.
629
00:35:48,835 --> 00:35:52,369
It was the sense that one false move
and you could be out of a job,
630
00:35:52,394 --> 00:35:54,499
which, you know, could throw you
into poverty.
631
00:35:55,805 --> 00:35:57,449
You weren't treated like
a human being,
632
00:35:57,474 --> 00:36:00,530
you were treated like a piece
of data on a spreadsheet.
633
00:36:02,755 --> 00:36:06,579
The GMB Union represents
many warehouse workers in the UK.
634
00:36:06,604 --> 00:36:11,660
It says it receives around 20
complaints a week from Amazon staff.
635
00:36:11,685 --> 00:36:14,340
Some of the most common issues
that we come across
636
00:36:14,365 --> 00:36:17,980
are health-related
musculoskeletal issues.
637
00:36:18,005 --> 00:36:20,010
Back, shoulder, leg.
638
00:36:20,035 --> 00:36:25,420
I have a belief that Amazon
are not really understanding
639
00:36:25,445 --> 00:36:28,090
what humans can and cannot do.
640
00:36:29,285 --> 00:36:32,340
Amazon told us that
despite misleading stories,
641
00:36:32,365 --> 00:36:34,220
safety was their priority,
642
00:36:34,245 --> 00:36:37,010
and they were proud of their modern
workplaces.
643
00:36:37,035 --> 00:36:38,300
They said:
644
00:37:17,835 --> 00:37:20,190
Concerns about the company's
working practices
645
00:37:20,215 --> 00:37:22,090
have been public for years.
646
00:37:24,365 --> 00:37:27,810
But they've done nothing
to slow its enormous growth,
647
00:37:27,835 --> 00:37:32,060
particularly during the pandemic,
when sales have boomed.
648
00:37:32,085 --> 00:37:36,860
In 2020, it created 7,000
new permanent jobs in the UK
649
00:37:36,885 --> 00:37:39,060
to handle our extra orders.
650
00:37:40,365 --> 00:37:43,900
It seems we just
can't help ourselves.
651
00:37:43,925 --> 00:37:46,369
Amazon has embedded itself
652
00:37:46,394 --> 00:37:50,860
so deeply into the fabric
of the consumer psyche
653
00:37:50,885 --> 00:37:55,190
that even when a consumer
654
00:37:55,215 --> 00:37:58,499
feels guilty about buying
from Amazon,
655
00:37:58,524 --> 00:38:03,730
there are reasons enough for them
still to go and buy from them.
656
00:38:03,755 --> 00:38:06,980
Good example — this week, I needed
something for a set of speakers
657
00:38:07,005 --> 00:38:08,730
and I wanted it by Tuesday.
658
00:38:08,755 --> 00:38:11,090
Nobody else was going to get it
to me by Tuesday.
659
00:38:11,115 --> 00:38:13,540
Amazon can,
so I bought it from Amazon.
660
00:38:13,565 --> 00:38:14,900
I felt a bit grubby about it.
661
00:38:17,115 --> 00:38:20,619
Coming up... How Amazon continued
its relentless growth
662
00:38:20,644 --> 00:38:23,090
with another
ground-breaking invention...
663
00:38:23,115 --> 00:38:24,980
AMAZON ALEXA:
I was made to play music,
664
00:38:25,005 --> 00:38:27,060
answer questions and be useful.
665
00:38:27,085 --> 00:38:30,900
...and why it could be bad news
for our privacy.
666
00:38:30,925 --> 00:38:32,220
Alyssa?
667
00:38:32,245 --> 00:38:34,860
Oh, that one worked.
First one, straight off the bat.
668
00:38:34,885 --> 00:38:36,619
Electra?
669
00:38:36,644 --> 00:38:38,140
She's gone blue.
670
00:38:48,824 --> 00:38:53,200
By 2014, Amazon were the top dogs
of online retail.
671
00:38:53,225 --> 00:38:57,479
Turning over $100 billion a year
by offering huge choice,
672
00:38:57,504 --> 00:38:59,240
undercutting rivals
673
00:38:59,265 --> 00:39:02,679
and getting stuff to us
at lightning speed.
674
00:39:02,704 --> 00:39:05,679
Not only did I find the product
almost instantly,
675
00:39:05,704 --> 00:39:07,960
it'll be sitting at my doorstep
by tomorrow.
676
00:39:07,985 --> 00:39:09,649
How do you compete with that?
677
00:39:11,035 --> 00:39:14,230
Then, just as it seemed there was
no more room for it to grow,
678
00:39:14,255 --> 00:39:18,110
it launched a device straight
out of science fiction.
679
00:39:18,135 --> 00:39:20,469
Designed to invade millions of homes
680
00:39:20,494 --> 00:39:23,600
and become an indispensable part
of everyday life...
681
00:39:24,594 --> 00:39:25,850
...Alexa.
682
00:39:25,875 --> 00:39:29,160
ALEXA: I was made to play music,
answer questions and be useful.
683
00:39:30,544 --> 00:39:33,040
Embedded in Amazon's Echo speakers,
684
00:39:33,065 --> 00:39:36,490
Alexa used voice recognition
and artificial intelligence
685
00:39:36,515 --> 00:39:39,730
to let us play music,
find the news headlines
686
00:39:39,755 --> 00:39:43,160
and, of course,
order products from Amazon,
687
00:39:43,185 --> 00:39:45,210
all without lifting a finger.
688
00:39:45,235 --> 00:39:49,130
Alexa came up because Jeff Bezos,
689
00:39:49,155 --> 00:39:51,290
who's a big fan of Star Trek,
690
00:39:51,315 --> 00:39:53,160
you know, he's a Trekkie, basically,
691
00:39:53,185 --> 00:39:55,210
wanted a talking computer
692
00:39:55,235 --> 00:39:57,960
just like the USS Enterprise
had on board.
693
00:39:57,985 --> 00:40:01,519
And if you want proof of
his Star Trek fandom... Cheers!
694
00:40:01,544 --> 00:40:05,290
...here he is preparing for a walk-on
part in one of the films.
695
00:40:06,344 --> 00:40:09,040
But with Alexa,
he wasn't playing games.
696
00:40:10,395 --> 00:40:12,370
Bezos wanted a slice of
the technology
697
00:40:12,395 --> 00:40:15,850
he thought was set
to dominate the world.
698
00:40:15,875 --> 00:40:18,210
Nearly everyone who works
in Silicon Valley
699
00:40:18,235 --> 00:40:23,010
thinks Al and voice—activated Al
is the future.
700
00:40:23,035 --> 00:40:26,600
Like Robert Frederick,
who worked on the technology
701
00:40:26,625 --> 00:40:29,569
that eventually led to Alexa.
702
00:40:29,594 --> 00:40:32,370
Typing is one thing,
but being able to converse
703
00:40:32,395 --> 00:40:35,649
and ask questions and get a response
that you can hear,
704
00:40:35,674 --> 00:40:37,960
absolutely the direction
of the future.
705
00:40:39,435 --> 00:40:43,600
Just as the website grew powerful
off the back of third-party sellers,
706
00:40:43,625 --> 00:40:45,800
when the world heard about their Al,
707
00:40:45,825 --> 00:40:50,090
every manufacturer of electronics
wanted it on board.
708
00:40:50,115 --> 00:40:52,040
Alexa is in everything.
709
00:40:52,065 --> 00:40:54,569
She's everywhere. No escape.
710
00:40:54,594 --> 00:40:57,699
You can buy glasses
with Alexa enabled,
711
00:40:57,724 --> 00:41:01,980
you know, you can buy a robot vac
with Alexa enabled.
712
00:41:02,005 --> 00:41:04,490
You can buy an Alexa—enabled toilet.
713
00:41:04,515 --> 00:41:07,490
If Amazon can get Alexa into
people's homes
714
00:41:07,515 --> 00:41:10,319
and every corner of their life,
then we become customers
715
00:41:10,344 --> 00:41:13,569
not just once a week or once a day,
but every hour of the day.
716
00:41:13,594 --> 00:41:17,519
In my house,
Alexa sets up all my lights.
717
00:41:17,544 --> 00:41:20,130
I don't have switches on walls.
718
00:41:20,155 --> 00:41:21,880
I do a lot of shopping
through Alexa.
719
00:41:21,905 --> 00:41:23,680
I ask Alexa to buy something.
720
00:41:23,705 --> 00:41:27,160
It is an integral part of my life.
721
00:41:27,185 --> 00:41:31,010
I worked on the grandmother
of Alexa.
722
00:41:31,035 --> 00:41:34,649
I have four or five in my house.
723
00:41:34,674 --> 00:41:36,600
My daughter, she grew up saying,
724
00:41:36,625 --> 00:41:39,090
"Alexa, what's the weather like
outside?"
725
00:41:39,115 --> 00:41:41,160
Before even engaging with us.
726
00:41:41,185 --> 00:41:44,960
But how did they name
this futuristic interface?
727
00:41:44,985 --> 00:41:46,569
Let's ask her.
728
00:41:46,594 --> 00:41:48,930
ALEXA: My name comes from
the Library of Alexandria,
729
00:41:48,955 --> 00:41:51,960
which stored the knowledge
of the ancient world.
730
00:41:51,985 --> 00:41:53,370
That's what she says.
731
00:41:53,395 --> 00:41:56,449
In fact, it's a little more
technical than that.
732
00:41:57,705 --> 00:41:59,649
The name was very hard to pick,
733
00:41:59,674 --> 00:42:03,730
because you want to pick
a very unique sound combination
734
00:42:03,755 --> 00:42:09,340
so that it doesn't wake up for any
sound you make or any conversation,
735
00:42:09,365 --> 00:42:12,410
but it's very unique,
but it's also very friendly.
736
00:42:14,395 --> 00:42:18,880
But would you want a friend who
never forgot a single thing you said?
737
00:42:18,905 --> 00:42:22,730
Critics think chatting to the
Al helper is a huge privacy risk
738
00:42:22,755 --> 00:42:24,730
because once it's activated,
739
00:42:24,755 --> 00:42:28,319
it sends every conversation you have
to Amazon,
740
00:42:28,344 --> 00:42:31,240
who store it for as long
as they want.
741
00:42:31,265 --> 00:42:34,800
Something lots of us
hadn't a clue about.
742
00:42:34,825 --> 00:42:40,290
We are all very new to this age
of surveillance in our households.
743
00:42:40,315 --> 00:42:43,569
We've asked a lot of people
if they know
744
00:42:43,594 --> 00:42:46,050
whether these conversations
are getting recorded or not.
745
00:42:46,075 --> 00:42:48,689
The majority of people
that I've spoken to,
746
00:42:48,714 --> 00:42:50,519
they didn't actually know.
747
00:42:50,544 --> 00:42:53,930
Then later on, when we go to them
and we actually go to their account
748
00:42:53,955 --> 00:42:55,880
and play the voice clips for them,
749
00:42:55,905 --> 00:42:58,880
they get shocked that, OK, a message
750
00:42:58,905 --> 00:43:01,730
that they send to somebody
six months ago
751
00:43:01,755 --> 00:43:03,930
is still somewhere on the system.
752
00:43:05,115 --> 00:43:08,290
So, why does Alexa store your data?
753
00:43:08,315 --> 00:43:12,240
ALEXA: Your data stored to help me
improve your experience.
754
00:43:12,265 --> 00:43:15,010
The company claims storing
the recordings
755
00:43:15,035 --> 00:43:17,600
allows it to check and refine
the software.
756
00:43:17,625 --> 00:43:19,519
Not a problem, perhaps,
757
00:43:19,544 --> 00:43:22,490
when you're simply asking about
the weather forecast.
758
00:43:22,515 --> 00:43:25,490
But what if it were recording
your private conversations
759
00:43:25,515 --> 00:43:27,290
without you knowing?
760
00:43:27,315 --> 00:43:30,240
Well, guess what? It sometimes does.
761
00:43:31,594 --> 00:43:34,370
Alexa works off of a wake word,
762
00:43:34,395 --> 00:43:37,600
and that wake word
is typically Alexa.
763
00:43:37,625 --> 00:43:40,010
And it could be misrecognised,
right?
764
00:43:40,035 --> 00:43:43,210
You could be saying something
completely differently
765
00:43:43,235 --> 00:43:46,050
and it may think that that is
its wake word,
766
00:43:46,075 --> 00:43:48,130
and then it starts recording.
767
00:43:48,155 --> 00:43:50,340
And then, as soon as it's done
recording,
768
00:43:50,365 --> 00:43:54,800
it'll automatically send a message
out to the Cloud, to Amazon.
769
00:43:54,825 --> 00:43:58,519
It turns out the efforts
to find a unique-sounding name
770
00:43:58,544 --> 00:44:00,800
weren't completely successful.
771
00:44:00,825 --> 00:44:05,240
In fact, it's pretty easy
to activate Alexa accidentally.
772
00:44:05,265 --> 00:44:06,600
Alyssa?
773
00:44:06,625 --> 00:44:09,240
Oh, that one worked.
First one, straight off the bat.
774
00:44:09,265 --> 00:44:11,080
Electra?
775
00:44:11,105 --> 00:44:12,600
She's gone blue!
776
00:44:12,625 --> 00:44:14,519
Lexus.
777
00:44:14,544 --> 00:44:16,730
Oh, Lexus.
Don't say Lexus around the home.
778
00:44:16,755 --> 00:44:18,880
Alyssa?
779
00:44:18,905 --> 00:44:20,649
I lick stamps.
780
00:44:20,674 --> 00:44:23,649
Oh, I lick stamps. Don't say that
one when you're knocking around.
781
00:45:20,364 --> 00:45:22,589
Studies have found dozens of words
782
00:45:22,614 --> 00:45:25,310
that have accidentally activated
Alexa.
783
00:45:25,335 --> 00:45:28,669
Even some television programmes
can cause it to switch on.
784
00:45:30,564 --> 00:45:34,260
We played literally hundreds
of hours of different TV programmes
785
00:45:34,285 --> 00:45:37,310
and we were seeing up to 19
activations a day
786
00:45:37,335 --> 00:45:38,870
from these devices.
787
00:45:38,895 --> 00:45:41,789
So quite a big number,
because with each activation,
788
00:45:41,814 --> 00:45:44,900
then you have a few tens of seconds'
worth of audio recordings.
789
00:45:44,925 --> 00:45:47,230
And from that moment,
the device is actually recording
790
00:45:47,255 --> 00:45:49,740
your private conversation
with your partner.
791
00:45:51,125 --> 00:45:54,740
So multiple times a day, your device
could be recording
792
00:45:54,765 --> 00:45:56,339
your private conversations
793
00:45:56,364 --> 00:46:00,510
and sending them to the Cloud
to be stored indefinitely.
794
00:46:02,734 --> 00:46:06,900
The average length of recordings
in Hamed's study was six seconds,
795
00:46:06,925 --> 00:46:09,950
but the longest was 20.
796
00:46:09,975 --> 00:46:12,709
No wonder some of those who helped
develop the system
797
00:46:12,734 --> 00:46:15,950
are careful what they say around it.
798
00:46:15,975 --> 00:46:19,100
In my household, we switch Alexa off
799
00:46:19,125 --> 00:46:22,950
just because there's some times
when we're having conversations
800
00:46:22,975 --> 00:46:25,589
and we just don't want to risk it.
801
00:46:27,125 --> 00:46:28,459
Amazon told us:
802
00:46:53,484 --> 00:46:56,539
But the issues with Alexa
are just part of a wider problem
803
00:46:56,564 --> 00:46:58,390
with data and privacy.
804
00:46:58,415 --> 00:47:02,070
With every product search we've ever
done stored indefinitely,
805
00:47:02,095 --> 00:47:05,180
critics claim Amazon knows
too much about us.
806
00:47:07,285 --> 00:47:09,539
The fact that we have
such large scale
807
00:47:09,564 --> 00:47:13,030
and such ubiquitous data collection
around all of our interaction
808
00:47:13,055 --> 00:47:15,230
means that maybe companies like
Amazon
809
00:47:15,255 --> 00:47:18,430
actually know us better than our
friends and family at some point,
810
00:47:18,455 --> 00:47:19,950
which could be pretty soon.
811
00:47:21,055 --> 00:47:24,430
And while it claims it stores
all information safely,
812
00:47:24,455 --> 00:47:27,380
multiple examples of successful
hacking at other companies
813
00:47:27,405 --> 00:47:31,070
have raised fears Amazon,
and our personal information,
814
00:47:31,095 --> 00:47:32,789
could be at risk.
815
00:47:34,005 --> 00:47:37,539
An individual does not necessarily
care about their privacy
816
00:47:37,564 --> 00:47:39,900
until something happens to them.
817
00:47:39,925 --> 00:47:42,789
Either their health care
information is known publicly,
818
00:47:42,814 --> 00:47:46,990
or their records of their
discussions with the doctor
819
00:47:47,015 --> 00:47:48,510
are being sold on the web,
820
00:47:48,535 --> 00:47:51,310
or their grades or tax records
821
00:47:51,335 --> 00:47:54,740
have been known to become public
20 years later.
822
00:47:54,765 --> 00:47:58,350
I worry that because it's exciting
and because it's futuristic
823
00:47:58,375 --> 00:48:00,980
and because it's incredibly
convenient and fun,
824
00:48:01,005 --> 00:48:04,310
a lot of us are embracing this
without really thinking
825
00:48:04,335 --> 00:48:06,669
what the future might hold.
826
00:48:07,975 --> 00:48:11,789
But others believe our old ideas
about privacy are obsolete.
827
00:48:11,814 --> 00:48:14,100
For them, swapping
personal information
828
00:48:14,125 --> 00:48:16,740
for increased convenience
is a good deal.
829
00:48:16,765 --> 00:48:20,310
We live in a post—privacy world.
830
00:48:20,335 --> 00:48:24,230
What am I getting
in exchange for the data
831
00:48:24,255 --> 00:48:27,150
that Amazon and everybody else
is collecting?
832
00:48:27,175 --> 00:48:30,789
Convenience, getting new ideas,
efficiency?
833
00:48:30,814 --> 00:48:34,100
There could be many things, but
that's what we need to negotiate.
834
00:48:34,125 --> 00:48:36,310
Almost everybody has made
a devil's bargain
835
00:48:36,335 --> 00:48:38,260
with these aggregators
of information.
836
00:48:38,285 --> 00:48:41,230
I think we're only just beginning
to understand now
837
00:48:41,255 --> 00:48:44,539
how precious some of that is
that we gave away.
838
00:48:44,564 --> 00:48:45,740
Our privacy.
839
00:48:47,455 --> 00:48:49,430
I think it's possible
that in a decade or so,
840
00:48:49,455 --> 00:48:51,620
we will look back on this era
841
00:48:51,645 --> 00:48:53,260
as a sort of a moment of madness,
842
00:48:53,285 --> 00:48:58,180
where we allowed devices into our
home to essentially spy on us.
843
00:48:58,205 --> 00:49:00,459
The company told us:
844
00:49:18,925 --> 00:49:21,070
But what about those of
us unconvinced
845
00:49:21,095 --> 00:49:23,430
by assurances of security?
846
00:49:23,455 --> 00:49:25,709
Is there anything they can do?
847
00:49:25,734 --> 00:49:28,020
No, not a question for you, Alexa,
848
00:49:28,045 --> 00:49:33,010
but someone else who lights up
consumers' lives — Frankie.
849
00:49:33,035 --> 00:49:36,040
How can we protect our privacy
when using Amazon?
850
00:49:36,065 --> 00:49:40,370
One way to do this is to have Amazon
stop tracking your browsing history,
851
00:49:40,395 --> 00:49:42,640
so you're not going to receive
a whole bunch of constant
852
00:49:42,665 --> 00:49:44,890
retargeting ads
when you're off of Amazon.
853
00:49:44,915 --> 00:49:48,040
To do this, simply log into
your account and on the upper menu,
854
00:49:48,065 --> 00:49:50,040
click your Browsing History.
855
00:49:50,065 --> 00:49:52,400
Click on Manage History
via the drop down,
856
00:49:52,425 --> 00:49:55,479
toggle to turn browsing history off.
857
00:49:55,504 --> 00:49:58,280
And, Chris, any tips to share?
858
00:49:58,305 --> 00:50:00,729
For one, a lot of
the Amazon Echo speakers
859
00:50:00,754 --> 00:50:02,920
have a mic-mute button
actually built in.
860
00:50:02,945 --> 00:50:06,920
A quick tap of that,
the mics are completely offline
861
00:50:06,945 --> 00:50:09,200
and then Alexa's not listening
to a word you say.
862
00:50:09,225 --> 00:50:11,970
You can also get your speaker
to play a notification sound
863
00:50:11,995 --> 00:50:14,010
whenever Alexa is active, as well.
864
00:50:14,035 --> 00:50:17,970
And you can also ask Alexa to forget
everything you've ever said,
865
00:50:17,995 --> 00:50:21,370
just in case, you know, you've asked
her to do some pretty weird stuff.
866
00:50:21,395 --> 00:50:24,809
Alexa? Delete everything
I said today.
867
00:50:25,865 --> 00:50:28,200
ALEXA: You'd like to delete
the recordings of everything
868
00:50:28,225 --> 00:50:30,609
said to me today. Is that right?
869
00:50:30,634 --> 00:50:31,970
Yes.
870
00:50:34,035 --> 00:50:38,450
Next... Getting the best from Amazon
at the busiest time of the year.
871
00:50:38,475 --> 00:50:42,370
The craziness, the level of orders
going out the door,
872
00:50:42,395 --> 00:50:45,280
is so monumentally huge,
873
00:50:45,305 --> 00:50:47,640
it's hard for anyone to fathom.
874
00:50:47,665 --> 00:50:51,200
And how much of what they're selling
is unsafe.
875
00:50:51,225 --> 00:50:53,400
In some cases, it led to
876
00:50:53,425 --> 00:50:56,120
risk of electrocution,
chemical poisoning.
877
00:51:05,295 --> 00:51:08,960
By 2020, Amazon dominated
online shopping,
878
00:51:08,985 --> 00:51:11,990
was putting artificial intelligence
in our homes
879
00:51:12,015 --> 00:51:14,429
and had even entered the world of
groceries,
880
00:51:14,454 --> 00:51:16,600
by buying Whole Foods.
881
00:51:16,625 --> 00:51:19,400
And then, along came the pandemic.
882
00:51:19,425 --> 00:51:21,509
Did you get bigger in lockdown?
883
00:51:23,375 --> 00:51:25,150
Amazon did.
884
00:51:25,175 --> 00:51:27,509
During the pandemic,
there's been obviously
885
00:51:27,534 --> 00:51:29,429
a huge increase in online shopping.
886
00:51:29,454 --> 00:51:35,070
Their revenues rose by at least 25%.
887
00:51:35,095 --> 00:51:40,910
Their stock grew by 70%
in the first half of 2020.
888
00:51:40,935 --> 00:51:47,060
Jeff Bezos' personal wealth
increased by nearly $60 billion.
889
00:51:47,085 --> 00:51:50,090
He's now the first human being
on Earth
890
00:51:50,115 --> 00:51:53,200
to be worth $200 billion.
891
00:51:53,225 --> 00:52:00,509
The company hired 175,000 employees
within a matter of months.
892
00:52:02,175 --> 00:52:04,480
All this means the busiest time
of the year
893
00:52:04,505 --> 00:52:07,759
is about to get a whole lot busier.
894
00:52:07,784 --> 00:52:11,759
What's it like to work in Amazon
in the heat of the fourth quarter,
895
00:52:11,784 --> 00:52:15,990
when you've got Black Friday, Cyber
Monday, the week before Christmas?
896
00:52:16,015 --> 00:52:20,840
The craziness, the level of orders
going out the door,
897
00:52:20,865 --> 00:52:23,559
is so monumentally huge,
898
00:52:23,584 --> 00:52:25,520
it's hard for anyone to fathom.
899
00:52:28,425 --> 00:52:32,790
Black Friday originated in the US,
the day after Thanksgiving,
900
00:52:32,815 --> 00:52:35,710
when the Christmas shopping season
starts in earnest
901
00:52:35,735 --> 00:52:38,150
and retailers offer massive deals.
902
00:52:38,175 --> 00:52:42,710
Thanks, in large part, to Amazon,
it's spread around the world.
903
00:52:42,735 --> 00:52:45,779
2019 was the largest
in the company's history,
904
00:52:45,804 --> 00:52:48,320
as it sold more than
100,000 laptops,
905
00:52:48,345 --> 00:52:50,200
200,000 televisions,
906
00:52:50,225 --> 00:52:52,480
300,000 headphones,
907
00:52:52,505 --> 00:52:54,840
350,000 beauty products
908
00:52:54,865 --> 00:52:56,790
and over a million toys.
909
00:52:58,625 --> 00:53:01,990
But even this day
isn't the most frantic.
910
00:53:02,015 --> 00:53:03,710
Black Fridays are hard,
911
00:53:03,735 --> 00:53:06,320
but wait until you get
a day before Christmas.
912
00:53:06,345 --> 00:53:07,759
That's the worst day ever.
913
00:53:07,784 --> 00:53:09,200
Very, very challenging.
914
00:53:09,225 --> 00:53:11,629
I still shiver
when I think about it.
915
00:53:13,904 --> 00:53:16,429
In Leicestershire,
Sasha Mitchell-Johnson
916
00:53:16,454 --> 00:53:19,600
is one of millions doing her
Christmas shopping on the website.
917
00:53:19,625 --> 00:53:21,790
So, come into my office.
918
00:53:21,815 --> 00:53:25,270
OK, so this is the place where I
order all of my Amazon deliveries.
919
00:53:25,295 --> 00:53:27,600
Starting to look already
at Christmas presents.
920
00:53:27,625 --> 00:53:30,600
You can just see here, actually, I'm
looking at what I can get my eldest.
921
00:53:30,625 --> 00:53:34,960
What I'll do is I will save a few
items in a list of stuff that I would like.
922
00:53:34,985 --> 00:53:37,270
It's got deals for under £15,
923
00:53:37,295 --> 00:53:39,240
so it's going to be great
for Christmas presents.
924
00:53:41,704 --> 00:53:46,790
But also hard for those working
in Amazon's vast warehouses.
925
00:53:46,815 --> 00:53:48,400
Toughest time of the year for us.
926
00:53:48,425 --> 00:53:51,040
So you're working either five or six
clays now,
927
00:53:51,065 --> 00:53:54,710
ten-hour shifts, sometimes
11-hour shifts or 12-hour shifts.
928
00:53:54,735 --> 00:53:57,520
You have to know that your clays
are shorter now,
929
00:53:57,545 --> 00:54:00,070
your time, your leisure at home
is shorter now.
930
00:54:00,095 --> 00:54:01,990
You're going to be at your job.
931
00:54:02,015 --> 00:54:03,759
That's your second home.
932
00:54:05,215 --> 00:54:07,569
So at the busiest online
time of the year,
933
00:54:07,594 --> 00:54:10,210
how can we snap up a bargain?
934
00:54:10,235 --> 00:54:13,350
I definitely recommend getting the
app because they do lightning deals,
935
00:54:13,375 --> 00:54:16,429
which, if you're not there and then
on the website, you'll miss out on.
936
00:54:16,454 --> 00:54:18,790
So on the app, it'll actually
give you notifications
937
00:54:18,815 --> 00:54:21,790
if certain things that you've shown
an interest in are on offer.
938
00:54:23,265 --> 00:54:26,150
If you see something you want that's
still available as a lightning deal,
939
00:54:26,175 --> 00:54:28,040
I recommend you jump right on it.
940
00:54:28,065 --> 00:54:30,040
This is almost always going to be
the best price,
941
00:54:30,065 --> 00:54:33,549
and it's limited to a set amount
of inventory or stock.
942
00:54:33,574 --> 00:54:36,820
These can run out in minutes,
or even seconds for the good ones.
943
00:54:40,385 --> 00:54:43,280
With millions of products
flying out of the warehouses
944
00:54:43,305 --> 00:54:46,330
from hundreds of thousands
of sellers worldwide,
945
00:54:46,355 --> 00:54:48,330
it's good news for Amazon,
946
00:54:48,355 --> 00:54:51,050
but is it always good for us?
947
00:54:51,075 --> 00:54:54,850
How do we know the products we're
buying are what they claim to be?
948
00:54:54,875 --> 00:54:57,610
How do we know they're safe?
949
00:54:57,635 --> 00:55:00,000
Amazon describes this as
an open marketplace,
950
00:55:00,025 --> 00:55:04,920
which means basically anybody can
show up and sell basically anything.
951
00:55:04,945 --> 00:55:08,080
The shortcoming in their thinking
was they didn't realise
952
00:55:08,105 --> 00:55:11,800
how easy it was for bad players
to show up
953
00:55:11,825 --> 00:55:13,720
and to dump counterfeit product,
954
00:55:13,745 --> 00:55:16,130
to dump product that hadn't been
properly tested.
955
00:55:16,155 --> 00:55:19,050
And unfortunately, some Amazon
customers have been seriously hurt
956
00:55:19,075 --> 00:55:22,050
by the faulty products
sold by faulty sellers.
957
00:55:22,075 --> 00:55:23,840
0h. my gosh!
958
00:55:23,865 --> 00:55:26,439
People posting online claim
faulty products
959
00:55:26,464 --> 00:55:28,800
have ranged from
flaming hairdryers...
960
00:55:28,825 --> 00:55:31,080
I cannot believe this!
961
00:55:31,105 --> 00:55:33,689
...to hoverboards catching alight.
962
00:55:33,714 --> 00:55:35,720
It's on fire!
963
00:55:35,745 --> 00:55:38,970
The consumer group Which?
have been testing products
964
00:55:38,995 --> 00:55:41,689
from online marketplaces,
including Amazon's,
965
00:55:41,714 --> 00:55:45,280
to see how many fail
our safety standards.
966
00:55:45,305 --> 00:55:47,970
And we found out there were
high failure rates,
967
00:55:47,995 --> 00:55:51,360
and in some cases, it led to
risk of electrocution,
968
00:55:51,385 --> 00:55:53,050
chemical poisoning.
969
00:55:54,584 --> 00:55:56,200
If something does go wrong,
970
00:55:56,225 --> 00:55:59,070
will Amazon hold up its hands
and say sorry?
971
00:56:00,814 --> 00:56:04,639
Amazon will say that it has
no responsibility for the product
972
00:56:04,664 --> 00:56:07,330
or the content or any of the actions
973
00:56:07,355 --> 00:56:09,639
of the third-party sellers
on its site.
974
00:56:09,664 --> 00:56:11,689
Now, we really think
that needs to change,
975
00:56:11,714 --> 00:56:14,360
given the role that sites like
Amazon play in our lives.
976
00:56:15,515 --> 00:56:18,720
As the law stands,
if you sell products from your shop
977
00:56:18,745 --> 00:56:21,920
or on your own website,
they're your responsibility.
978
00:56:23,155 --> 00:56:25,559
But if you run
an online marketplace,
979
00:56:25,584 --> 00:56:27,840
you don't have to take
responsibility
980
00:56:27,865 --> 00:56:30,280
for goods sold by third parties.
981
00:56:34,635 --> 00:56:36,080
The company told us:
982
00:56:57,794 --> 00:56:59,970
So, what can we do
to protect ourselves
983
00:56:59,995 --> 00:57:02,170
when shopping on the website?
984
00:57:02,195 --> 00:57:04,530
Let's ask those helpful experts
again.
985
00:57:04,555 --> 00:57:07,530
Now, when you're buying items
on Amazon, don't always just assume
986
00:57:07,555 --> 00:57:10,720
that the Amazon's Choice
selection are the best ones.
987
00:57:10,745 --> 00:57:12,330
This isn't entirely based on rating,
988
00:57:12,355 --> 00:57:14,330
it's also based on lots of
other factors,
989
00:57:14,355 --> 00:57:16,530
including Amazon's own stock levels.
990
00:57:16,555 --> 00:57:18,720
Instead, you should always go
with trusted brands
991
00:57:18,745 --> 00:57:20,970
that you've heard of,
and also check out those reviews.
992
00:57:22,225 --> 00:57:24,500
That brings me actually
to my next tip.
993
00:57:24,525 --> 00:57:27,220
You need to try to learn
to spot fake reviews.
994
00:57:27,245 --> 00:57:28,820
Be wary of fake reviews.
995
00:57:28,845 --> 00:57:31,300
And to be clear,
there are lots out there.
996
00:57:31,325 --> 00:57:33,500
Be sure to check the name and links,
for starters.
997
00:57:33,525 --> 00:57:35,709
The authentic ones
are more likely to be detailed
998
00:57:35,734 --> 00:57:38,270
and not have a robotically—generated
name.
999
00:57:38,295 --> 00:57:41,579
Be sure to observe things like
spelling and grammar.
1000
00:57:41,604 --> 00:57:44,740
And also, when you're buying any
kind of electrical appliance or toy
1001
00:57:44,765 --> 00:57:47,550
or anything like that, make sure
they come with a CE marking.
1002
00:57:47,575 --> 00:57:49,100
That shows they are fully compliant
1003
00:57:49,125 --> 00:57:53,300
with the EEA's health, safety and
environmental protection standards.
1004
00:57:55,655 --> 00:57:58,020
It seems, to stay safe
on the website,
1005
00:57:58,045 --> 00:57:59,990
you have to work as hard as...
1006
00:58:01,604 --> 00:58:05,270
...as hard as Amazon does
to reduce what it pays in tax.
1007
00:58:05,295 --> 00:58:09,459
Because now we come to another major
complaint about the company —
1008
00:58:09,484 --> 00:58:11,459
its tax bill.
1009
00:58:11,484 --> 00:58:16,270
An issue MP Margaret Hodge
has spent years investigating.
1010
00:58:17,965 --> 00:58:24,220
They had a turnover in the UK
of £13] billion in 2019.
1011
00:58:24,245 --> 00:58:27,100
And we also know from the records
that they only paid
1012
00:58:27,125 --> 00:58:29,550
£14 million in corporation tax.
1013
00:58:29,575 --> 00:58:33,380
So that's 0.1% of turnover.
1014
00:58:33,405 --> 00:58:36,300
That is a piddling amount, bluntly,
1015
00:58:36,325 --> 00:58:38,220
in relation to their turnover.
1016
00:58:39,575 --> 00:58:42,990
The company did also hand over
millions in other taxes,
1017
00:58:43,015 --> 00:58:45,380
like stamp duty and business rates,
1018
00:58:45,405 --> 00:58:47,909
but it's their low
corporation tax bill
1019
00:58:47,934 --> 00:58:50,630
that's got some
hot under the collar.
1020
00:58:50,655 --> 00:58:53,350
How do they do it?
1021
00:58:53,375 --> 00:58:57,300
Well, corporation tax is levied
not on turnover, but profits.
1022
00:58:57,325 --> 00:58:59,829
What's left after
all your other costs.
1023
00:58:59,854 --> 00:59:03,500
And by ploughing most of their money
back into growing the business,
1024
00:59:03,525 --> 00:59:06,789
Amazon manage to keep their profits
surprisingly low.
1025
00:59:08,934 --> 00:59:10,789
When people asked,
why do you not pay any tax?
1026
00:59:10,814 --> 00:59:13,100
Amazon turned around
and legitimately said,
1027
00:59:13,125 --> 00:59:15,789
well, we don't make any profit.
You tax on profit.
1028
00:59:17,245 --> 00:59:20,909
But critics argue it's not clear
why the company records
1029
00:59:20,934 --> 00:59:24,270
such small profits in the UK,
1030
00:59:24,295 --> 00:59:27,709
because Amazon's
far from transparent.
1031
00:59:27,734 --> 00:59:31,940
One of the really frustrating
aspects of the whole Amazon story
1032
00:59:31,965 --> 00:59:36,190
is that they have such a complex web
of companies
1033
00:59:36,215 --> 00:59:38,740
that it's impossible to really
get underneath
1034
00:59:38,765 --> 00:59:41,430
and have a proper understanding
of what's going on.
1035
00:59:43,045 --> 00:59:46,140
What we do know is the company pays
a fraction of the amounts
1036
00:59:46,165 --> 00:59:49,380
paid by high—street rivals,
big and small.
1037
00:59:51,215 --> 00:59:54,100
Take the book shop
based in a high street.
1038
00:59:54,125 --> 00:59:57,909
They don't avoid their taxes,
and Amazon does.
1039
00:59:57,934 --> 01:00:01,630
Amazon, by avoiding taxes,
can sell at a cheaper price,
1040
01:00:01,655 --> 01:00:04,860
so they destroy
the community-based book shops,
1041
01:00:04,885 --> 01:00:06,630
they destroy our high street.
1042
01:00:07,734 --> 01:00:08,909
Amazon told us:
1043
01:00:19,484 --> 01:00:21,740
The company says
when all taxes are added,
1044
01:00:21,765 --> 01:00:23,940
it contributes a much higher sum.
1045
01:00:37,215 --> 01:00:39,709
Coming up... They're everywhere.
1046
01:00:39,734 --> 01:00:41,740
How Amazon provide
the computer power
1047
01:00:41,765 --> 01:00:45,270
behind some of the biggest brands
in the world.
1048
01:00:45,295 --> 01:00:48,860
It was the most innovative thing
that they have done to date.
1049
01:00:48,885 --> 01:00:53,190
And just what is the world's richest
man doing with all that money?
1050
01:00:53,215 --> 01:00:56,909
There is a theory that Jeff Bezos
started Amazon
1051
01:00:56,934 --> 01:01:00,659
so he would have enough money
to colonise outer space.
1052
01:01:09,075 --> 01:01:13,490
In just 25 years, Amazon has gone
from obscure online book shop
1053
01:01:13,515 --> 01:01:16,410
to the world's
most valuable retailer.
1054
01:01:16,435 --> 01:01:18,360
How have they done it?
1055
01:01:18,385 --> 01:01:21,130
Well, we know all about
the shopping website,
1056
01:01:21,155 --> 01:01:23,130
the artificial intelligence...
1057
01:01:23,155 --> 01:01:26,240
ALEXA: This device has received
an important update.
1058
01:01:26,265 --> 01:01:27,960
...even the TV.
1059
01:01:27,985 --> 01:01:30,490
25 years after I started at Amazon,
1060
01:01:30,515 --> 01:01:32,490
I am still amazed by its growth.
1061
01:01:33,794 --> 01:01:35,330
When I read about new initiatives,
1062
01:01:35,355 --> 01:01:37,800
which basically take place every day
there,
1063
01:01:37,825 --> 01:01:39,130
there's always something.
1064
01:01:40,715 --> 01:01:44,930
But there's one something
hardly any of us have a clue about,
1065
01:01:44,955 --> 01:01:49,410
even though it's now the
most important part of the business.
1066
01:01:50,955 --> 01:01:52,440
Cloud computing.
1067
01:01:53,874 --> 01:01:57,160
Cloud computing is a way for
companies to do their computing
1068
01:01:57,185 --> 01:01:59,080
on Amazon's own computers.
1069
01:01:59,105 --> 01:02:00,800
It's cheaper for them, faster.
1070
01:02:00,825 --> 01:02:04,290
All companies need
is an internet connection,
1071
01:02:04,315 --> 01:02:08,000
and they can pay to use Amazon's
machines to do all their computing
1072
01:02:08,025 --> 01:02:10,210
and store all their data,
1073
01:02:10,235 --> 01:02:13,690
instead of spending millions
building their own.
1074
01:02:13,715 --> 01:02:16,410
Amazon Web Services is basically
1075
01:02:16,435 --> 01:02:20,599
hundreds and hundreds of miles
of rows of servers
1076
01:02:20,624 --> 01:02:24,290
and cooling systems in warehouses
1077
01:02:24,315 --> 01:02:27,330
ranged across America
and other places in the world.
1078
01:02:27,355 --> 01:02:31,490
Lots of very expensive undersea
cabling linking them all together.
1079
01:02:32,985 --> 01:02:34,690
Their Cloud—computing business
1080
01:02:34,715 --> 01:02:37,690
is the company's most important
idea since Prime.
1081
01:02:39,355 --> 01:02:43,050
Just about everybody today
uses Amazon Web Services.
1082
01:02:44,825 --> 01:02:47,960
Netflix may have changed the way
we watch TV,
1083
01:02:47,985 --> 01:02:50,719
Airbnb the way
we book accommodation,
1084
01:02:50,744 --> 01:02:53,849
and Uber the way we get around town,
1085
01:02:53,874 --> 01:02:57,210
but they all did it
using Amazon's computers.
1086
01:02:57,235 --> 01:03:00,360
I don't think any other company
has done what Amazon has done,
1087
01:03:00,385 --> 01:03:04,130
to be a part of every other company
that's out there.
1088
01:03:04,155 --> 01:03:06,849
And I think it was
the most innovative thing
1089
01:03:06,874 --> 01:03:08,410
that they have done to date.
1090
01:03:09,794 --> 01:03:13,490
Today, they're the biggest
Cloud—computing business in the world.
1091
01:03:13,515 --> 01:03:16,440
And their enormous banks
of computers
1092
01:03:16,465 --> 01:03:19,599
provide the vast majority
of Amazon's profits.
1093
01:03:19,624 --> 01:03:24,240
It's the combination of its
retail side and its computing side
1094
01:03:24,265 --> 01:03:28,490
that's put it in the top four most
valuable companies on the planet.
1095
01:03:30,385 --> 01:03:33,989
Amazon's become so big
that their revenue
1096
01:03:34,014 --> 01:03:38,300
dwarfs the GDP of some countries,
like Portugal, for example.
1097
01:03:38,325 --> 01:03:40,659
They've grown so fast.
1098
01:03:40,684 --> 01:03:45,180
They've been able to grow
as big as Apple in 25 years,
1099
01:03:45,205 --> 01:03:48,789
as Apple has grown to in 40 years.
1100
01:03:50,205 --> 01:03:53,230
With such enormous
and ever-growing sales,
1101
01:03:53,255 --> 01:03:54,900
many companies might be inclined
1102
01:03:54,925 --> 01:03:57,260
to take their foot off
the accelerator.
1103
01:03:57,285 --> 01:03:58,980
Not this one.
1104
01:04:00,095 --> 01:04:02,460
It's expanding into new areas,
1105
01:04:02,485 --> 01:04:06,350
aiming to become an even bigger part
of everyday life.
1106
01:04:06,375 --> 01:04:08,980
It can be anything it wants to be,
really.
1107
01:04:09,005 --> 01:04:11,590
They've got that much power,
that much money,
1108
01:04:11,615 --> 01:04:14,659
that much market share,
they could do whatever they wanted.
1109
01:04:14,684 --> 01:04:16,869
They're going to all these different
industries —
1110
01:04:16,894 --> 01:04:19,710
finance, health care, shipping,
you name it.
1111
01:04:21,535 --> 01:04:24,070
Welcome to Amazon Go.
1112
01:04:24,095 --> 01:04:26,590
And as this ad shows,
they even branched out
1113
01:04:26,615 --> 01:04:29,820
into bricks-and-mortar stores,
with a difference.
1114
01:04:29,845 --> 01:04:33,180
Amazon just launched
a really phenomenal experience
1115
01:04:33,205 --> 01:04:36,020
where you don't stand in line,
you don't wait,
1116
01:04:36,045 --> 01:04:38,070
you just come and pick up
what you want
1117
01:04:38,095 --> 01:04:41,100
and you walk out
without any interruptions.
1118
01:04:41,125 --> 01:04:42,380
I love that experience.
1119
01:04:42,405 --> 01:04:46,619
Amazon has amassed
financial information
1120
01:04:46,644 --> 01:04:49,180
for hundreds of millions
of shoppers.
1121
01:04:49,205 --> 01:04:52,230
And that's going to give it
an advantage
1122
01:04:52,255 --> 01:04:55,260
when it's moving into
financial businesses.
1123
01:04:56,735 --> 01:04:59,150
Drones, to me, it's the future.
1124
01:04:59,175 --> 01:05:02,510
Because Amazon has many customers
who live far away.
1125
01:05:02,535 --> 01:05:06,739
And so, the ability to deliver
an item within an hour
1126
01:05:06,764 --> 01:05:08,710
to those customers
is really exciting.
1127
01:05:10,455 --> 01:05:12,460
Amazon's working on telemedicine,
1128
01:05:12,485 --> 01:05:15,710
where they'll use Alexa to set up
a doctor's appointment.
1129
01:05:15,735 --> 01:05:19,900
And Amazon now owns a online
pharmacy called PillPack.
1130
01:05:21,285 --> 01:05:24,100
Once it's conquered Earth,
what's next?
1131
01:05:26,325 --> 01:05:28,659
Jeff Bezos has a plan for that.
1132
01:05:28,684 --> 01:05:30,380
It's called Blue Origin.
1133
01:05:31,814 --> 01:05:33,510
And as you can see
from this interview,
1134
01:05:33,535 --> 01:05:35,300
he's pretty pleased with it.
1135
01:05:35,325 --> 01:05:37,300
And so, right behind me
1136
01:05:37,325 --> 01:05:40,739
is the first fully-reusable rocket,
1137
01:05:40,764 --> 01:05:43,300
and we just flew it into space.
1138
01:05:43,325 --> 01:05:47,739
There is a theory that Jeff Bezos,
you know, started Amazon,
1139
01:05:47,764 --> 01:05:52,020
so he would have enough money
to colonise outer space.
1140
01:05:52,045 --> 01:05:55,900
He owns a rocket company
separate from Amazon.
1141
01:05:55,925 --> 01:05:58,180
He, in the past,
has been selling about
1142
01:05:58,205 --> 01:06:01,230
$1 billion of his Amazon stock
every year
1143
01:06:01,255 --> 01:06:03,430
to fund his rocket company.
1144
01:06:03,455 --> 01:06:07,619
Bezos thinks we're rapidly
outgrowing the Earth.
1145
01:06:07,644 --> 01:06:09,710
He wants to make space travel cheap
1146
01:06:09,735 --> 01:06:12,710
and get us making new homes
up there.
1147
01:06:12,735 --> 01:06:17,510
I think he truly believes
that mankind needs to be saved.
1148
01:06:17,535 --> 01:06:20,789
I mean, maybe that is a power trip,
1149
01:06:20,814 --> 01:06:22,100
if you look at it in one way,
1150
01:06:22,125 --> 01:06:25,350
but in another way, you know,
it's his way
1151
01:06:25,375 --> 01:06:28,501
of trying to give back to the world.
1152
01:06:28,526 --> 01:06:32,371
Because Amazon hasn't been great
in giving back to the world.
1153
01:06:33,916 --> 01:06:36,730
Currently,
Bezos is working on a plan
1154
01:06:36,755 --> 01:06:39,341
to ship cargo to the Moon by 2023.
1155
01:06:39,366 --> 01:06:43,571
Whether he can guarantee
next-day delivery is unclear.
1156
01:06:43,596 --> 01:06:46,341
But whether the Blue Origin venture
works or not,
1157
01:06:46,366 --> 01:06:49,730
Amazon can now count itself
as one of the most successful
1158
01:06:49,755 --> 01:06:52,650
and innovative businesses
of modern times.
1159
01:06:52,675 --> 01:06:55,501
ALEXA: I was designed and built
by Amazon.
1160
01:06:55,526 --> 01:06:59,860
A company that's truly changed
the way we shop, and live.
1161
01:06:59,885 --> 01:07:02,341
Amazon's growth
from where it started,
1162
01:07:02,366 --> 01:07:05,780
selling us books out of a garage
in 1995,
1163
01:07:05,805 --> 01:07:09,171
to being a $2 trillion company
today,
1164
01:07:09,196 --> 01:07:12,091
has been completely unprecedented.
1165
01:07:13,246 --> 01:07:16,650
I continue to be impressed,
or even awed at times,
1166
01:07:16,675 --> 01:07:20,011
at the company's...ingenuity,
you know,
1167
01:07:20,036 --> 01:07:23,341
and at how good they are at doing
a lot of the things they do.
1168
01:07:23,366 --> 01:07:28,141
And yet, I'm uneasy about
a lot of what they do, as well.
1169
01:07:28,166 --> 01:07:31,091
I think Amazon have changed
the way we live dramatically,
1170
01:07:31,116 --> 01:07:34,811
and I don't think that's ever
happened, really, in history before.
1171
01:07:34,836 --> 01:07:37,530
Maybe Ford, with the Model T,
and the first car,
1172
01:07:37,555 --> 01:07:39,530
but other than that,
can you really say
1173
01:07:39,555 --> 01:07:42,421
a company has changed the world?
I don't think so.
1174
01:07:42,446 --> 01:07:43,730
Maybe Amazon are the first.
1175
01:07:50,916 --> 01:07:53,091
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