Technology News South Africa

Amazon to compensate customers for late gifts

NEW YORK, USA: Amazon will give US$20 gift cards and pay shipping costs for customers affected by problems at UPS and FedEx that delayed the delivery of some Christmas packages.
Amazon's UK distribution centre. Amazon will provide vouchers to customers who received their parcels after Christmas. Image:
Amazon's UK distribution centre. Amazon will provide vouchers to customers who received their parcels after Christmas. Image: Wales Online

The Amazon pledge came after UPS in particular came under fire for late packages despite vows from retailers to meet a Christmas Day deadline.

Some customers took to Twitter to voice their displeasure, likening one or both delivery companies to the "Grinch who stole Christmas."

Amazon pointed the finger squarely at the delivery companies. The online retailer did not give estimates for the number of affected shoppers.

"Amazon fulfillment centres processed and tendered customer orders to delivery carriers on time for holiday delivery," said Amazon spokesman Mary Osako. "We are reviewing the performance of the delivery carriers."

Walmart will also provide gift cards to customers who did not receive packages by the promised deadline, the New York Times reported. Walmart did not immediately respond to a request for comment.

"UPS experienced heavy holiday volumes and is making every effort to get packages to their destination as quickly as possible," UPS said on its website. "UPS has resumed normally scheduled service on 26 December."

A FedEx spokesperson also reported a "surge" in volumes but added that the rise was typical of the Christmas rush.

"We had minimal service disruptions despite the increase in volumes and are working directly with customers who may have experienced any delays," said the FedEx spokesman.

The delivery woes suggested the retail sector is still adjusting to shifting customer behavior with the rise of online shopping. Analysts had expected brick and mortar shopping to rise by between 3% and 4% in 2013, but online shopping jumping by between 13% and 14%.

Amazon has characterised its overall holiday shopping season as the "best ever" in the company's history. Particularly popular was the "Amazon Prime" service, which provides free two-day shipping services and streaming of some television shows and movies for US$79 a year.

Amazon said it signed up more than one million customers for its "Prime" service in the third week of December.

Source: AFP via I-Net Bridge

Source: I-Net Bridge

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