Penny Thoughts (a ten minute play) (eTens)
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Requirements of a 10-Minute Play
General News Police: 3 dead, 1 missing after car plunges into canal October 7, Did have this cleared by the CTO of the company to make sure that had his blessing to kind of represent the story as a lesson for everyone else, one of these really scary stories that happens. It was really kind of foundational to what the company kind of, the way we did things there, because it was such a scary thing that happened at such an early stage within the company. This happened in July of I joined the customer success team at that company.
The company was called Informed. At the time, it was called Appeagle. I joined the team in , so just shy of two years later, before I eventually moved into product.
We did, I did with them, price management software for third party sellers on Amazon, eBay, and Walmart. That landscape has changed a lot since this first happened in , but we have some stats here. We can go into some background about what that sort of landscape is like. These are stats from, these are recent stats. This was different back in At the time there were, so right now there is about more than one million sellers on Amazon, third party sellers.
What happened? We know that Amazon is kind of the everything store, and so we can talk about what you can buy, and what you can sell on there.
Third party sellers can sell books on there too. What else can you buy? You can buy tools, you can buy toiletries, groceries, anything you want. Going kind of higher up on the tickets, there you can buy TVs, you can buy cameras.
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You can buy anything on Amazon, and you could sell anything on Amazon pretty much. How does price management software work? Basically, if we go back to , at the time it was pretty basic.
You can just not set a minimum price. Those items without that minimum price, they get excluded from the repricing. Except, except, when you modify that single line of code, in a way that makes these items all without a price, go to a penny. That is a pretty scary sort of event, and what caused that to happen. Amazon, unfortunately, rather than rejecting that, they did something that I guess they must have thought was very convenient, they rounded up from zero to a penny.
The Penny Glitch That Cost Big
All these things that we had here, TVs, cameras, items that could sell for thousands of dollars, they all of a sudden went to that penny. As you can imagine, customers took advantage of that. You know how I was talking about the different kinds of fulfillment a little bit ago, where you could either do that seller fulfilled, or that FBA, that Amazon fulfilled.
They had gotten this order within an hour or two. These orders have already shipped to customers. This sort of thing is basically the worst case scenario for a company in this industry. This was the first day of the fourth employee. Not really a company equipped to handle something like this. How do you even begin to clean something like this up? It was only four people at the time, kind of circle the wagons, trying to figure out how to do it. They were able to thankfully identify what had happened and correct that, get that changed, undone pretty quickly, but then you had to spring into action and really start working with people to get those fixes in.
One of the first steps was to notify Amazon. They needed to be made aware that these hundreds, or thousands, of orders had gone in kind of mistakenly. Can you please go ahead and cancel that order.
Or they just canceled it themselves and took that hit. There were some reimbursements done to kind of cover any losses for people that did go ahead and fulfill those orders at a loss.
Penny for Her Thoughts
It has 10 times the number of employees that it had then. Probably a similar, or even bigger exponential of customers. How do get through an incident like this and not have it kill off the company? One of the first things is obviously to ensure that it never happens again.
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