Wheat Ridge, Colorado police took a 50-year-old man into custody Wednesday following a two-month search.
What’s ailing the Internet giants
As both a reader and a writer, this headline in The New York Times caught my eye over the weekend: “Plot Thickens as 900 Writers Battle Amazon.”
Caught in the middle are hundreds of Hachette authors who are losing money. Because of this, more than 900 authors (most of whom are not even published by Hachette) banded together, drafting this letter to Amazon CEO Jeff Bezos that ran as a full-page advertisement in Sunday’s Times.
In a follow-up story, the Times reports that Amazon is locked in a similar struggle with another supplier, this one even bigger than Hachette: Disney.
Underlying this push-pull between Amazon and its suppliers is this basic fact: the Internet behemoth is bleeding. In the second quarter, its losses totaled $126 million, compared with $7 million a year ago.
It has cut its margins too thin with its rock-bottom prices and ubiquitous free shipping, and it feels brick-and-mortar retailers nipping at its once-untouchable heels, as noted by L2 in a recent study. Now it’s trying to put the squeeze on suppliers to correct its errors.
It’s really the only action that Amazon can take. After all, a company whose main attraction is having the lowest price on absolutely everything from books to diamond rings can’t raise them too much. What would set it apart then? It doesn’t offer any kind of physical experience--in other words, you can’t (yet) go into an Amazon store to see, touch and feel product before you buy--and it’s hardly the only retailer selling goods online with fast delivery these days.
All that ails Amazon is very similar to what Blue Nile is experiencing right now.
The Seattle-based online diamond seller, which made its name by undercutting traditional brick-and-mortar jewelers on engagement ring prices, recently had to lower its prices after passing higher diamond prices on to consumers put a dent in second quarter sales. (U.S. engagement ring sales fell 5 percent during the period.) The company will be certain that its pricing strategy is one element of the business that is “absolutely clear to the consumer,” CEO Harvey Kanter stressed.
While Blue Nile has had to adjust its pricing many times in the past in response to fluctuations in the diamond market, this most recent announcement
Having covered this company for several years now, it is my impression that Blue Nile’s customers are quite price sensitive. They are shopping on Blue Nile because it’s, first and foremost, cheaper and more convenient.
But that’s not necessarily enough anymore. Brick-and-mortar retailers have become more competitive with their pricing and many are online now as well. So, how do companies like Blue Nile and Amazon continue to compete?
Ironically, the answer seems to be by mimicking the brick-and-mortar retailers they’ve pained for so long.
Blue Nile is displaying (not selling) its rings in two Nordstrom stores. When asked last week by an analyst about these displays, Kanter said: “It is a test. It continues to be a test. We are learning a lot of things … we are in a learning mode and we don’t really have a view of what will happen as we move forward. It is a test and continues to be just that.”
It is a test, but not just a test. It is an indicator that online retailers will have to offer more to keep up in this ever-evolving market.
The Latest
PGI partnered with four new and seven returning designers for its annual platinum capsule collection.
Nicolosi, president and CEO of The Kingswood Company, previously sat on WJA’s board from 2011 to 2018.
Meet Ben Claus—grand prize winner of For the Love of Jewelers 2023 Fall Design Challenge.
Karina Brez’s race-ready piece is a sophisticated nod to the horse-rider relationship.
The men are allegedly responsible for stealing millions in jewelry and other valuables in 43 burglaries in 25 towns across Massachusetts.
“Horizon” invites individuals to explore the limitless possibilities that lie ahead, said the brand.
With Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
The jeweler credits its recent “Be Love” campaign and ongoing brand revamp for its 17 percent jump in sales.
The co-founder of Lewis Jewelers was also the longtime mayor of the city of Moore.
Elvis Presley gifted this circa 1967 gold and diamond watch to Dodie Marshall, his co-star in “Easy Come, Easy Go.”
Concerns about rising prices, politics, and global conflicts continue to dampen consumer outlook.
May’s birthstone is beloved for its rich green hue and its versatility.
Jacqui Larsson joins Opsydia with nearly two decades of experience in the industry.
Last month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
The “Tiffany Céleste” collection reimagines designer Jean Schlumberger’s interpretations of the universe.
The brand also created a 100-carat lab-grown diamond necklace in honor of its centennial.
Tim Schlick has been promoted from his previous position as COO.
It’s the second year for the event, slated to take place in October in Toronto.
Supplier Spotlight Sponsored by GIA
Sales will be paused while the relocation takes place over the next few months.
“SIS x MISA Denim and Diamonds” is a collaboration between the designer and celebrity stylist Misa Hylton.
The retailer is moving to a newly designed space in the same shopping center.
Gifts that are unique and thoughtful are top of mind this year, according to the annual survey.
The necklace is featured in the brand’s “Rebel Heart” campaign starring Adam Levine and Behati Prinsloo.
The two organizations will host a joint event, “Converge,” in September 2025.