A mazon is offering its discounted credit card fees to retailers that adopt Amazon Pay, the company’s online payments service, according to Bloomberg. Apparently, Amazon has offered the discounts to smaller businesses that have to pay higher credit card fees. Because Amazon is able to negotiate a lower fee because of its massive user base and sales volume, it is passing this savings on to those adopting the Amazon Pay service. Amazon Pay, which currently has about 30 million users, allows users to buy online through their Amazon accounts as an alternative to services like PayPal. It can be offered as an option by businesses as a form of payment. This shows Amazon’s aggressiveness in the market and that they are willing to give up profit margin in exchange for expanding its market share for its new service. It is also expected that Amazon will continue to focus on adding additional financial products including the launching of a credit account service in the future.
F acebook’s entanglement with Cambridge Analytica has caused trust in the organization to erode among users, but it seems as if advertisers are still open to advertising with Facebook because of its ability to target consumers using data that is gathered on its users. Some big advertisers have expressed frustration with the measurability or lack of transparency around metrics used to measure the effectiveness of a campaign on digital plat- forms like Facebook and Google. Procter & Gamble, the world’s largest advertiser, is said to have cut more than $200 million in digital ad spending after data showed those ad campaigns on digital platforms were not effective. Facebook has announced changes to simplify and clarify its metrics to appease advertisers, acknowledging flaws in its calculations. However, declining trust in the platform among users, and growing wariness over how personal data is being used has become a growing concern with advertisers that will be looking for more accountability for their marketing budget moving forward .
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MAY 2018 • SPOTLIGHT ON BUSINESS MAGAZINE
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