Hi, I'm Matt Turner, the editor in chief of business at Insider. Welcome back to Insider Weekly, a roundup of some of our top stories.
On the agenda today:
- Internal documents show Amazon has for years knowingly tricked people into signing up for Prime subscriptions.
- Burnout isn't employees' fault — the real culprits are companies and rotten leadership.
- Glossier founder Emily Weiss' tech dreams derailed the hottest millennial beauty brand.
- Russia's invasion of Ukraine has wrecked China's grand plan.
Let me know what you think of all our stories at [email protected].
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How Amazon tricked people into Prime memberships
Who here hasn't ordered something from Amazon in the past 12 months?
The e-commerce giant has built on its ubiquity to turn Amazon Prime into one of the most popular subscription programs in the world, with more than 200 million members as of last year. Often, it's been the promise of free shipping that's flipped shopper to subscriber.
But as Eugene Kim reported, those Prime sign-up screens have been the source of much debate inside Amazon. Internal documents show it has been aware for years of customer complaints that its user-interface design misleads people into signing up for Prime. But when Amazon tested clearer language on these pages, there were fewer signups.
Eugene's reporting takes us inside the issue, describing documents and emails discussing the trade-offs between Amazon's prized "customer centricity" and business goals. It also reveals a previously undisclosed inquiry from the Federal Trade Commission.
Here, Eugene gives us the behind-the-scenes scoop.
What's the most interesting thing you learned while reporting this piece?
Eugene: The big takeaway, from speaking with sources, is that Amazon preaches customer satisfaction — but only when it makes sense financially. The company knew for years that customers complained about Prime's sign-up process, but decided not to change much because it would have led to fewer sign-ups and smaller membership revenue. Maybe there are other examples of this within Amazon?
What do you think is next for Amazon's subscription practices?
Eugene: Many of my sources talked to me in hopes of seeing change in the Prime sign-up flow. So I would expect some kind of improvement in clarity. But it's also entirely possible Amazon won't do anything, given their statement to us that said the current design is "clear and simple."
Read the full story here:
Also read:
- In leaked audio, Amazon's CEO Andy Jassy shares a bold vision for the company's healthcare business. Here's what the giant retailer is doing to become a 'significant disruptor.'
- Amazon workers reveal why they're prepared to vote against unionizing in one of the most consequential elections in US history
Want to fix burnout? Look at the employer, not the employee
We're two years into a pandemic, and everyone is still talking about burnout. Employee burnout is now recognized by the World Health Organization as a "syndrome" caused by "chronic workplace stress that has not been successfully managed."
The problem with recent think pieces and self-help stories about burnout is that they rely on two fundamental lies, according to Ed Zitron.
Read the full story here:
Also read:
- How do you know if your workplace is toxic? Researchers analyzed 1.4 million employee reviews and think they have the answer.
- 'My company is not my family': Fed up with long hours, many employees have quietly decided to take it easy at work rather than quit their jobs
What happened to Glossier
Glossier, the beauty brand known for its baby-pink aesthetic and emphasis on natural looks, was on the fast track to success after its launch in 2014. Beloved by 20- and 30-somethings craving change in the industry, the company was an overnight phenomenon. Today, it boasts a $1.8 billion valuation.
But conversations with 17 former employees show another side to the booming company. Employees said behind the company's financial success was a sometimes chaotic and unstable work environment, spearheaded by a founder whose obsession with transforming the brand into a tech company sparked internal tensions.
Read the full story here:
Also read:
Putin's invasion of Ukraine has lit a fire under China
Over the past few years, Beijing's most ambitious goal has been to dramatically reshape its economy, reducing its dependence on the West as it turned China into the world's dominant superpower.
China has been slowly closing its door to the West, columnist Linette Lopez writes. But Russia's unprovoked attack on Ukraine last month kicked the country's plan for independence into warp speed.
Read the full story here:
Also read:
- The photo of a dead Ukrainian woman and her kids shocked the world. The story of her startup life has made the tragedy feel painfully personal to many tech workers.
- 'Distrust and verify': How Biden crafted his strategy for confronting Putin — and the prospects for peace in Ukraine
More of this week's top reads:
- Web3 has so far failed to live up to the promises of "freedom" and "decentralization."
- This self-made Airbnb multimillionaire makes $600,000 in revenue every month.
- Ex-Theranos COO Sunny Balwani's trial started. Our writer says he's pretty much screwed.
- From engineers to product managers, we're sharing how much Facebook pays its employees.
- As buyers race to buy homes before interest rates rise, experts share the pitfalls of rushing into homeownership.
- Ghost kitchens are applying Silicon Valley's playbook to restaurants. Insiders say it may be a recipe for disaster.
Plus: Keep updated with the latest business news throughout your weekdays by checking out The Refresh from Insider, a dynamic audio news brief from the Insider newsroom. Listen here.
Curated by Matt Turner. Edited by Jordan Parker Erb and Lisa Ryan. Sign up for more Insider newsletters here.