Amazon (AMZN) has a major problem on its hands after it recently raked in record profits.
The online retail giant, which has over 315 million customers worldwide, recently saw increased consumer momentum during the holiday shopping season.
Amazon’s fourth-quarter earnings report for 2024 revealed that its U.S. sales increased by 10% year-over-year during the quarter. This contributed to the company generating an operating income of $9.3 billion in the U.S., a roughly 30% increase from what it earned during the same quarter in 2023.
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“The holiday shopping season was the most successful yet for Amazon and we appreciate the support of our customers, selling partners, and employees who helped make it so,” said Amazon CEO Andy Jassy in the earnings report.
Amazon may soon face a dip in sales
Amazon’s sales, however, now face a major threat from frustrated consumers across the country.
The People’s Union USA, a group that has recently organized boycotts or “economic blackouts” of large corporations across the country, has just made Amazon its next target.
In a March 7 Instagram post, The People’s Union USA founder John Schwarz posted a statement from the group informing consumers that the Amazon boycott has begun, and it will last until March 14.
Amazon Prime Now Delivery van and driver downtown on 4th avenue late in the day.
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The group is urging people to boycott the online retail giant due to it allegedly exploiting its workers, harming small businesses, firing employees for organizing unions, monopolizing industries, using loopholes to dodge paying taxes, and violating the privacy of its customers.
“For the Amazon Boycott, we are targeting all commercial entities owned, operated, or significantly controlled by Amazon and Jeff Bezos,” said The People’s Union USA in the statement.
These Amazon-owned entities include Amazon Fresh, Whole Foods, Twitch, MGM Studios, Audible, Zappos, and many others.
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This is the second large boycott the group has organized this year. Last month, it organized its “economic blackout” boycott, which lasted all day on Feb. 28. The boycott targeted large retailers such as Walmart, Amazon and Target.
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“Corporations profit off of our labor while keeping wages low. Banks steal billions through inflation and predatory policies,” said Schwarz in a viral video on Instagram on Feb. 4. “Politicians accept bribes disguised as donations while ignoring the people. They have taken everything from us while convincing us that we should be grateful for the scraps, and that ends now. On Feb. 28, we are going to remind them who really holds the power.”
Consumers are rebelling against anti-DEI efforts
Some consumers have also been using these boycotts to express their frustration with companies either removing or scaling back their diversity, equity and inclusion policies, which were first put in place in 2020 after George Floyd was murdered by a white police officer who assisted in his arrest.
Amazon quietly scaled back its DEI policies in January. In an internal memo to employees, Amazon said that the move was part of its process of “winding down outdated programs and materials.”
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Many other companies, such as Meta, McDonald’s, and Google, have also opted to cut back their DEI policies this year, especially after President Donald Trump issued an executive order on Jan. 20 dismantling the federal government’s DEI programs. In the executive order, he claimed that the programs enforce “illegal and immoral discrimination.”
Amazon is not the only retailer facing a lengthy boycott. Target is also currently facing a 40-day boycott from consumers because it is scaling back its DEI policies.
In a recent interview with CNN, the Rev. Jamal Bryant, a pastor from Atlanta who started the boycott, said that Black people deserve “some loyalty, some decency, and some camaraderie,” as they spend over $12 million a day.
“We’re asking people to divest from Target because they have turned their back on our community,” said Bryant.
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