#Fulfillment by Amazon

[mostlysignssomeportents]

How Amazon transformed the EU into a planned economy

Amazon is a perfect parable of enshittification, the process by which platforms first offer subsidies to end users until they’re locked in, then make life good for business customers at users’ expense, until they’re locked in, then claw back all the value they can for themselves, leaving just enough behind to keep the lock-in going.

In a new report for SOMO, Margarida Silva describes how the end-stage enshittification of Amazon is playing out in the EU, with Amazon repeating its US playbook of gouging the small businesses who have no choice but to use the platform in order to reach its locked-in customers, making European customers and European sellers poorer:

https://www.somo.nl/amazons-european-chokehold/

The mechanism for this isn’t a mystery. Amazon boasts about it! They call it their flywheel: first, customers are lured into the platform with low prices, especially through Prime, which requires pre-payment for a year’s shipping, which virtually guarantees that customers will start their shopping on Amazon. Because customers now start their buying on Amazon, sellers have to be there. The increased range of goods for sale on Amazon lures in more buyers, who lure in more sellers, with both sides holding each other hostage:

https://vimeo.com/739486256/00a0a7379a

This flywheel creates a vicious cycle, starving local retail so that customers can’t get what they need from brick-and-mortar shops, which funnels sellers into offering their goods for sale on Amazon. The less choice customers and sellers have about where they shop, the more Amazon can abuse both to pad its own bottom line.

There are 800,000 EU-based sellers on Amazon, and they have seen the junk-fees that Amazon charges them skyrocket, to the point where they have to raise prices or lose money on each sale. Amazon uses both tacit and explicit “Most Favored Nation” deals to hide these price-hikes. Under an MFN deal, sellers must not allow their goods to be sold at a lower price than Amazon’s — so when they raise prices to cover Amazon’s increasing fees, they raise them everywhere:

https://pluralistic.net/2023/04/25/greedflation/

It’s not hard to understand why Amazon would raise its fees: the company has an effective e-commerce monopoly. Like Ozymandias, they have run out of worlds to conquer, and so their growth has to come from squeezing suppliers and/or raising prices, not from bringing in new customers. This is likewise true of mobile companies like Apple and Google, who have run out of people who are so excited about incremental mobile hardware gains that they’ll buy a new phone every year, which means that growth has to come from squeezing app vendors:

https://www.tbray.org/ongoing/When/202x/2023/06/09/Pixel-4-to-7

This is likewise true of the streaming companies, which is why Netflix is cracking down on “password sharing”:

https://pluralistic.net/2023/02/02/nonbinary-families/#red-envelopes

It’s true of the movie studios, which is why they want to zero out their wage bills by replacing writers with automatic plausible sentence generators that will write stupid movies that they think we’ll still pay to see because there won’t be anything else:

https://pluralistic.net/2023/05/06/people-are-not-disposable/#union-strong

It’s certainly true of Uber, which is why they’ve double the cost of a taxi ride and halved the wages they pay drivers:

https://pluralistic.net/2023/04/12/algorithmic-wage-discrimination/#fishers-of-men

Monopolies “grow” by making their customers and suppliers worse off. But they have to be careful about this: if it’s obvious that you’re using your market power to screw buyers, you can get in trouble with competition regulators. That’s because the only part of antitrust law that the neoliberal project left intact is “consumer welfare” — the idea that monopolies should only face enforcement when they raise prices and/or lower quality:

https://pluralistic.net/2022/10/10/play-fair/#bedoya

This focus on price-hikes has given monopolists a free hand to squeeze suppliers and workers, because a monopolist — from Walmart to Amazon — can claim that squeezing your workers and suppliers is necessary to enhancing consumer welfare. The less you pay to produce a product, the cheaper you can price it.

When a company has a lot of seller power, we call it a monopolist. When it has a lot of buying power, we call it a monopsonist. No one ever made a bestselling, family-destroying board game called “Monopsony” so most people haven’t heard of the concept. But monopsony is every bit as dangerous as monopoly, and monopsonists find it far easier to acquire market power than monopolists. Few suppliers can afford to have even 10% of their sales disappear overnight, so a buyer who accounts for 10% of your sales can demand deep discounts and other favorable terms.

Amazon is a monopolist, but it’s also a very powerful and ruthless monopsonist. For example, its audiobook division, Audible, has a 90+% market-share, and it used that market-power to steal at least $100m from audiobook creators, in a scandal dubbed Audiblegate:

https://pluralistic.net/2022/09/07/audible-exclusive/#audiblegate

For Europe’s 800k sellers who rely on Amazon to reach their customers, the monoposony conditions are blatant and shameless. Take listing fees: Amazon’s “flywheel” pitch claims that as the company grows, it achieves “economies of scale” that can lower its cost basis. But Amazon’s listing fees haven’t changed, even as the company experienced explosive growth in the EU (remember, sellers whose Amazon fees exceed their margins have to pass those fees onto buyers, and also raise their prices everywhere else to satisfy the Most Favored Nation requirement).

Amazon books the revenues from these fees — and other junk-fees it extracts from sellers — in Luxembourg, an EU member nation that provides a tax haven to multinational businesses that want to maintain the fiction that they operate their businesses out of the tiny kingdom. There is sharp competition in the EU to offer the most servile, corrupt environment for multinationals, and Luxembourg is a leader, along with Cyprus, Malta and, of course, Ireland:

https://pluralistic.net/2023/05/15/finnegans-snooze/#dirty-old-town

But at least listing fees haven’t gone up, unlike other fees, which have climbed sharply. Amazon falsely claimed that its additional revenues from fees were the result of growth by independent sellers, which Amazon pegged at 65%. Later, the company admitted that the true growth figure was 22%. Meanwhile, fees are up 85%.

The true growth figure might be lower still. Amazon refuses to show the math behind its growth figures, or even say which sellers and sales are included in the figure.

The SOMO report cites research by Juozas Kaziukėnas of the e-commerce research firm Marketplace Pulse, who finds that sellers are now giving 50% of their gross revenues to Amazon, an increase of 10% over the past five years across the whole EU. However, different EU (and ex-EU) countries have experienced much steeper increases in fees — in the UK, fees have nearly doubled (up 98%), and in France, fees more than doubled (up 115%).

Many of these increases come from the Fulfilment By Amazon (FBA) program, which is promoted as an optional service, but which is really obligatory — careful research shows that sellers who warehouse, pack and ship their own goods get banished to the depths of search results, even if they have ratings, costs and times that are competitive with FBA. This is especially true of the “buy box” that lands at the top of most searches. The company refuses to disclose how buy box positioning is determined, but 90% of products in the buy box pay for FBA.

Amazon has used excuseflation to hike its FBA prices, blaming higher energy prices for price hikes that predated the Russian invasion of Ukraine, and blaming covid for price hikes that predated the pandemic.

Italy’s competition authority did yeoman service in uncovering the sleaze of FBA, publishing an investigation that showed that Prime and buy box made the notionally “optional” FBA into a must-have for merchants, meaning that Amazon could jack up FBA prices without losing business.

Another notable source of gouging came in response to the UK and France adopting digital services taxes, which were meant to make up for the tax-base erosion enabled by Luxembourg’s flouting of EU tax law. Amazon passed these taxes straight through to its merchants, without seeing a comparable decrease in the number of sellers using its platforms — an unmistakable sign of market power. If you can raise prices without losing customers, then, by definition, your customers have nowhere else to go.

I’ve previously written about how Amazon’s $31b/year “advertising” market isn’t really advertising — rather, it’s a payola scheme that auctions off the top of a search-listing to the merchant with the most to spend:

https://pluralistic.net/2022/11/28/enshittification/#relentless-payola

This is how you get a simple search like “cat beds” returning results whose first screen is 100% ads, and whose next five screens are 50% ads, many of them for dog products:

https://www.washingtonpost.com/technology/interactive/2022/amazon-shopping-ads/

Auctioning off search results means that every time you search for something you want, you have to wade through screen after screen of listings for products whose vendors spent more on advertising, leaving less to spend on making quality goods.

This is as true in the EU as it is in the USA. The SOMO report shows that European merchants are required to spend ever-larger sums to show up in results for the exact products they sell, leaving them with a choice between making less money, raising prices, or skimping on quality.

But even the “winners” of Amazon’s gladiatorial combat among vendors can still lose. Amazon uses an automated product removal process that can delete some or all of a merchant’s products, without warning or explanation, and no one at Amazon will explain what a merchant did wrong. That remains true even if a vendor pays for Amazon’s “marketplace consultant” service — ask these paid Virgils why you’ve been cast into Amazon’s pit, and they’ll shrug their shoulders (and bill you for it).

And even if you can navigate the junk fees, the Kafka-as-a-service removals, the war of all sellers against all sellers for search primacy…you still lose. Merchants told SOMO that a product that survives Amazon’s gauntlet is likely to be cloned by Amazon and sold as an Amazon Basic or other house-brand product. Amazon doesn’t charge itself 50% junk fees, so it can always underprice the vendors it knocks off, and give its own products permanent top-of-search placement.

Amazon founder Jeff Bezos once testified under oath before Congress that this doesn’t happen — and then refused to return to Congress when multiple vendors showed evidence that he’d lied:

https://www.washingtonpost.com/business/2021/10/18/amazon-congress-letter-third-party-data/

He definitely lied:

https://www.reuters.com/investigates/special-report/amazon-india-rigging/

Amazon has faced investigations and enforcement in the EU over this, and settled a claim with a promise to “not use non-public seller data to compete with sellers,” but given the company’s record of broken promises on this score and the difficulty of catching them cheating, it’s pretty naive to think they’ll stick to this.

The report quotes Thomas Höppner, a lawyer who has represented small businesses that Amazon screwed over. Höppner says the problem is that the EU evaluates Amazon’s bad deeds on a “case-by-case” basis, missing the big picture: “By the time one identified problem was seemingly solved, Amazon had long made amendments elsewhere with the same effect. We require a more holistic approach that considers the entire Amazon ecosystem and the various interdependencies within.”

But the EU’s enforcement approach is about to change significantly. The EU just passed the Digital Markets Act (DMA), which imposes a bunch of obligations on Amazon:

allowing sellers to offer their products on other marketplaces at different prices (Article 5.3),

not obliging business users to pay for one of its services in order to use its platform (Article 5.8),

limiting the way Amazon uses non-public seller data to compete with them (Article 6.2)

preventing Amazon from giving top billing in search results to its own products or sellers that have acquired extra Amazon services (Article 6.5)

The report concludes with a suite of recommendations for improving EU enforcement. First, they argue for a return to traditional competition law, abandoning the “consumer welfare standard” that is so friendly to monopsonies and their abuses of suppliers and workers.

They call for a probe into Amazon’s Most Favored Nation deals (“fair pricing policy”), the practice of sponsoring search results, and spiraling fees. They want the EU to adequately fund DMA enforcement, with “measures to prevent regulatory capture.” And they want Amazon to publish clear explanations for how search results, buy box placement, and other practices hidden behind a veil of secrecy.

Amazon will doubtless claim that disclosing how those systems work will make it easier for spammers and scammers to game their way to the top of search results. We should be skeptical of this claim — content moderation is the last domain where anyone takes the bankrupt idea of security through obscurity seriously:

https://doctorow.medium.com/como-is-infosec-307f87004563

Finally, the report calls for breaking up Amazon, forcing it to choose between being a platform seller or a platform user, calling this the only way to “prevent the conflicts of interest between its role as a platform intermediary, seller, and service provider.”

The technical term for this measure is “structural separation” — a rule that bans platform companies from competing with their business customers. This is the principle at work in the US bipartisan AMERICA Act, which would force Google and Meta to spin off the parts of their ad-tech business that put them in a conflict of interest. Right now, Googbook represents both publishers and advertisers, while operating the marketplace where ad sales take place, and they take 51% out of every ad dollar:

https://www.eff.org/deeplinks/2023/05/save-news-we-must-shatter-ad-tech

Structural separation hasn’t really been applied in the US for a generation, but it’s gained currency in recent years, for the obvious reason that the referee can’t also own one of the teams. I was in Germany last week speaking to regulators and politicians, and they espoused skepticism that the EU would embrace structural separation anytime soon.

But they were wrong! Today, the European Commission announced plans to force Google and Meta to sell off their conflict-of-interest ad-tech lines of business, mirroring the provisions of the US AMERICA Act:

https://arstechnica.com/tech-policy/2023/06/google-may-soon-be-ordered-to-break-up-its-lucrative-ad-business-eu-warns/

Structural separation really is the policy we should be demanding. It’s amazing that lawyers who would never argue a case in front of a judge who was married to the plaintiff will turn around and defend the idea that Amazon can fairly operate a marketplace where they compete with other sellers.

With Amazon dominating online sales, and with in-person retail cratering, Amazon’s decisions have the power to determine the outcome of whole swathes of Europe’s economy. This is the “planned economy” that the EU claims it detests and seeks to prevent — but it’s an economy planned by distant autocrats in a Seattle boardroom, for the purpose of extracting the surpluses needed to launch an endless procession of penis-rockets.

If you’d like an essay-formatted version of this postto read or share, here’s a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2023/06/14/flywheel-shyster-and-flywheel/#unfulfilled-by-amazon

[Image ID: A desert ruin. In the foreground is a huge Amazon box, with an EU flag in place of its shipping label. Atop the box are the feet and partial legs of an Oxymandias figure.]

Image: Rama (modified) https://commons.wikimedia.org/wiki/File:Gladiator_with_sword-Louis_Ernest_Meissonnier-MG_1216-IMG_1223-white.jpg

CC BY-SA 3.0 https://creativecommons.org/licenses/by-sa/3.0/fr/deed.en

[shipglobalin]

Discover how Amazon FBA can transform your eCommerce business. From effortless logistics solution to reaching millions of customers, learn how to maximize your business growth with Fulfillment by Amazon. Read now and take your business to new heights!

[inventorymanagementsystem]

The Fulfillment by Amazon (FBA) business model has revolutionized how online sellers manage their operations. By leveraging Amazon's extensive fulfillment network and Amazon FBA Management Software, sellers can streamline logistics, enhance inventory control, and focus on business growth.

[flostream]

E-commerce Fulfillment Solution

Warehousing, Logistics and Mailing Houses!

Elevate your e-commerce game with FloStream's Amazon Fulfillment FBA services!

Our expert team ensures smooth order processing and timely deliveries, so you can delight your customers every time.

Say goodbye to shipping hassles and hello to seamless operations!

[rjzimmerman]

Excerpt from this story from The Revelator:

In recent decades the Inland Empire — comprised of San Bernardino and Riverside counties — has been the primary victim of America’s warehouse boom. As demand for online shopping has surged — e-commerce sales grew 50% to $870 billion during the pandemic alone — this region has served as a billionaire’s dumping ground. Those are the words of Tom Dolan, executive director of Inland Congregations United for Change. “Now it’s no longer just Warren Buffet, it’s Jeff Bezos and Amazon,” Dolan told The Guardian in 2021. “And we’re paying the cost of doing their business.”

That business is only made possible by taking out a nonconsensual loan from the residents of surrounding communities. It’s a coercive trade: the health and safety of citizens for the profits they’ll never share. And no worthwhile efforts have been made to pay off that debt.

In order to fulfill the glamorous promises of expedited, overnight and same-day deliveries, diesel trucks conduct over 600,000 daily trips through the Inland Empire alone, carrying roughly 40% of the nation’s goods. These vehicles emit 1,000 pounds of diesel particulate matter every day (alongside 100,000 pounds of nitric oxide and 50,000,000 pounds of carbon dioxide).

The International Agency for Research on Cancer has classified diesel particulate matter as a Group 1 carcinogen — the most severe category — due to sufficient evidence linking diesel exposure to lung cancer. (Other studies have suggested a relationship to cancers of the bladder, larynx, esophagus, stomach, pancreas and blood, alongside asthma, other respiratory disease, heart attacks and premature mortality.) The region bordering the warehouse hub in one Inland Empire city, Ontario, ranks in the 95th percentile of cancer. A 2015 study estimated that 70% of the total cancer risk from air pollution in California is caused by diesel exhaust alone.

The people who suffer the consequences of our online shopping are not typically over-consumers themselves. The South Coast Air Quality Management District found that the 2.4 million people living within half a mile of a warehouse are also disproportionately Black and Latino communities below the poverty line. In 2012 San Bernardino ranked as the second poorest city in America with over 34.6% of people living in poverty. And of all the residents living within a mile of the average Amazon warehouse, 80% are people of color.

[gregor-samsung]

Nomadland (Chloé Zhao, 2020)    

[st-just]

In 2017 another worker, Philip Lee Terry, fifty-nine, was crushed to death by a forklift he was working beneath in the maintenance area, in Plainfield, Indiana. He lay in a pool of blood for two hours before anyone noticed him. The state initially fined Amazon $28,000 for four major safety violations, including failure to train Terry in how to elevate the forklift properly. But the state OSHA director offered company officials advise in how to negotiate down the fines and shift blame to Terry, in a phone call recorded by the OSHA inspector on the case, John Stallone. After hanging up with Amazon, the OSHA director said to Stallone, 'I hope you don't take it personally if we have to manipulate your citations.'

-Fulfillment: Winning and Losing in One-Click America, by Alec MacGillis

[themyscirah]

This is technically a Diana's age poll but I framed it partially around Julia's rescue because that's the event I need to contextualize and whether or not Diana is a thing yet is p important for my purposes. I would keep the Pérez run and postcrisis continuity in mind when answering this bc that's when this is relevant but I'd keep in mind that even though Diana is very young there (like early 20s) we don't know I don't think if she ages differently as a child (esp as a themysciran AND being made from clay) and in some versions she is older than she looks and was made earlier

Edit: I accidentally logic-ed this out in the tags lol 🤦‍♀️but feel free to still vote however you want. Going to publish this anyway bc I think I made some good points later in my tags

[maretriarch]

having a boomer moment as i walk past a group of kindergartners being herded omw home and half of them are like on their hands and feet crawling and turning themselves around and in general, bumbling around with lots of excess energy like children are want to do and my immediate half relevant thought was "and the WOKE LEFT want to give these KIDS adhd meds!!!!!!" it really does horrify me that we are deliberately stunting our children in such a vital developmental phase just because theyre.....like not maximizing their productivity? they arent purely efficient little automatons marching from place to place? because its mildly more of a hassle herding kids vs lobotomized cows. its evil. it is.

[inventorymanagementsystem]

Running a successful Amazon FBA (Fulfillment by Amazon) business is no easy feat, but once you've achieved a steady stream of sales, it's natural to want to scale your operation and take it to new heights.

[ultrainfinitepit]

I don’t mean to bother you or anything but do you think you’ll ever sell your stuff on Amazon? 

Probably not. It's not really a marketplace that aligns with my brand values. And it's generally frowned upon in all other small business circles (in fact some marketplaces like Faire and Handshake will blacklist you if you sell on Amazon). The fees on Amazon are also higher than Etsy's so there's no point in using it instead of Etsy.

[flostream]

Flostream is rapidly growing Mailing and Fulfilment services provider based in the South of England.

Our cutting edge mailing equipment and a large network of delivery agents allow us to offer our customers an incredibly agile solution to their fulfilment needs.

[gregor-samsung]

Nomadland (Chloé Zhao, 2020)  

[blog-kmsantosh-me-blog]

Amazon Fulfillment in China: Navigating the Complexities of a Global E-Commerce Giant 

Amazon, the world’s largest e-commerce company, has established a significant presence in China, one of the most competitive and complex markets globally. Despite facing fierce local competition, Amazon has leveraged its global fulfillment expertise to carve out a niche in China’s vast and dynamic e-commerce landscape. This article delves into Amazon's fulfillment operations in China, exploring its strategies, challenges, and impact on the broader market.

1. Amazon's Entry and Expansion in China

Amazon entered the Chinese market in 2004 by acquiring Joyo.com, a major online book and media retailer. Rebranded as Amazon China (Amazon.cn) in 2011, the company sought to bring its global e-commerce model to China, offering a wide range of products, including books, electronics, fashion, and household items. However, Amazon faced stiff competition from established local giants like Alibaba’s Tmall and JD.com, both of which had deep-rooted supply chains and an intimate understanding of Chinese consumers.

2. Fulfillment by Amazon (FBA) in China

A cornerstone of Amazon's success worldwide is its Fulfillment by Amazon (FBA) service, which allows third-party sellers to store their products in Amazon's fulfillment centers. Amazon then handles the picking, packing, and shipping, providing sellers with access to its vast logistics network. In China, FBA has been a critical element of Amazon’s strategy, particularly for Chinese sellers looking to reach global markets.

a. Supporting Cross-Border E-Commerce One of the main strengths of Amazon’s fulfillment operations in China is its support for cross-border e-commerce. Chinese manufacturers and sellers can use FBA to store their products in Amazon’s global network of warehouses, enabling fast and efficient shipping to customers worldwide. This has been particularly beneficial for small and medium-sized enterprises (SMEs) in China, who gain access to international markets without the need to invest in their own logistics infrastructure.

b. Amazon Global Selling Program The Amazon Global Selling Program has been a significant driver of cross-border trade for Chinese sellers. By leveraging Amazon’s fulfillment capabilities, Chinese sellers can list their products on Amazon’s marketplaces in North America, Europe, Japan, and other regions. FBA’s integration with this program ensures that products are delivered quickly and reliably, enhancing the customer experience and boosting sales for Chinese exporters.

3. Logistics Infrastructure and Capabilities

Amazon has built a robust logistics network in China, which includes multiple fulfillment centers strategically located near key transportation hubs. These centers are equipped with advanced technologies such as robotics, automation, and artificial intelligence to optimize operations and reduce costs.

a. Warehousing and Inventory Management Amazon’s fulfillment centers in China are designed to handle high volumes of goods, with a focus on efficient inventory management. The use of sophisticated software ensures that stock levels are optimized to meet demand, while minimizing storage costs. This capability is crucial in a market like China, where consumer expectations for fast delivery are exceptionally high.

b. Last-Mile Delivery While Amazon operates

its own logistics network for fulfillment and warehousing, it partners with local couriers and third-party logistics providers for last-mile delivery in China. This approach allows Amazon to leverage the extensive delivery networks already established by local companies, ensuring that customers receive their orders quickly, even in remote areas. In major cities, Amazon offers same-day or next-day delivery, aligning with the service levels provided by local competitors like JD.com and Alibaba.

4. Challenges Faced by Amazon in China

Despite its global expertise, Amazon has encountered several challenges in the Chinese market, impacting its fulfillment operations and overall market position.

a. Intense Local Competition Amazon faces fierce competition from domestic e-commerce giants like Alibaba and JD.com, which dominate the market with their extensive product offerings, localized services, and deep understanding of Chinese consumer behavior. These companies have also built their own sophisticated logistics networks, often providing faster delivery options than Amazon in many regions.

b. Regulatory and Operational Complexities Navigating China’s regulatory environment has been another significant challenge for Amazon. The country’s strict regulations on foreign companies, particularly in areas like data security, customs, and cross-border trade, require Amazon to continuously adapt its operations. Additionally, the logistics infrastructure in some parts of China can be less developed, posing challenges for efficient fulfillment and delivery.

c. Consumer Preferences and Market Adaptation Chinese consumers have specific preferences, such as shopping through mobile apps and engaging with social commerce platforms, which differ from Western markets where Amazon traditionally excels. Adapting to these preferences and localizing its fulfillment operations to meet the expectations of Chinese customers has been a persistent challenge for Amazon.

5. Strategic Shifts and Future Outlook

In recent years, Amazon has shifted its focus in China from competing head-to-head with local e-commerce giants to leveraging its strengths in cross-border e-commerce and global logistics.

a. Focus on Cross-Border Trade Amazon has increasingly positioned itself as a gateway for Chinese sellers to access international markets, rather than competing directly with Alibaba and JD.com in the domestic market. By offering comprehensive fulfillment services through FBA, Amazon helps Chinese businesses reach customers around the world, reinforcing its role in the global supply chain.

b. Investment in Technology and Innovation Amazon continues to invest in cutting-edge technologies to enhance its fulfillment capabilities in China. This includes expanding its use of automation in warehouses, improving data analytics for better inventory management, and developing more efficient logistics solutions to reduce delivery times and costs.

c. Exploring New Opportunities As the Chinese market evolves, Amazon may explore new opportunities in areas such as cloud computing with AWS, digital payments, and further integration of AI and machine learning in logistics. These areas offer potential for growth and differentiation in a highly competitive market.

6. Conclusion

Amazon’s fulfillment in China highlight the complexities and opportunities of operating in one of the world’s most competitive e-commerce markets. While the company faces significant challenges, particularly from local competitors, its expertise in global logistics and cross-border trade provides a strong foundation for continued success. By focusing on its strengths and adapting to the unique demands of the Chinese market, Amazon can maintain a meaningful presence in China and continue to play a vital role in global e-commerce.

This article provides an overview of Amazon’s fulfillment strategies and operations in China, examining the challenges the company faces and the strategic shifts it has made to stay relevant in a highly competitive environment.

[xtruss]

The Death of School 10! How Declining Enrollment Is Threatening The Future of American Public Education.

— By Alec MacGillis | August 26, 2024

The building that housed Rochester’s now shuttered School 10. Such closures “rend the community,” a professor of education said.Photographs by Joshua Rashaad McFadden for The New Yorker

In The Nineteen-Nineties, when Liberia descended into civil war, the Kpor family fled to Ivory Coast. A few years later, in 1999, they were approved for resettlement in the United States, and ended up in Rochester, New York. Janice Kpor, who was eleven at the time, jokingly wonders whether her elders were under the impression that they were moving to New York City. What she remembers most about their arrival is the trees: it was May, yet many were only just starting to bud. “It was, like, ‘Where are we?’ ” she said. “It was completely different.”

But the Kpors adapted and flourished. Janice lived with her father in an affordable-housing complex close to other family members, and she attended the city’s public schools before enrolling in St. John Fisher University, just outside the city, where she got a bachelor’s degree in sociology and African American studies. She found work as a social-service case manager and eventually started running a group home for disabled adults.

She also became highly involved in the schooling of her three children, whom she was raising with her partner, the father of the younger two, a truck driver from Ghana. Education had always been highly valued in her family: one of her grandmothers had been a principal in Liberia, and her mother, who remained there, is a teacher. Last fall, when school started, Kpor was the president of the parent-teacher organization at School 10, the Dr. Walter Cooper Academy, where her youngest child, Thomasena, was in kindergarten. Her middle child had also attended the school.

Kpor took pleasure in dropping by the school, a handsome two-story structure that was built in 1916 and underwent a full renovation and expansion several years ago. The school was in the Nineteenth Ward, in southwest Rochester, a predominantly Black, working- and middle-class neighborhood of century-old homes. The principal, Eva Thomas, oversaw a staff that prided itself on maintaining a warm environment for two hundred and ninety-nine students, from kindergarten through sixth grade, more than ninety per cent of whom were Black or Latino. Student art work filled the hallways, and parent participation was encouraged. School 10 dated only to 2009—the building had housed different programs before that—but it had strong ties to the neighborhood, owing partly to its namesake, a pioneering Black research scientist who, at the age of ninety-five, still made frequent visits to speak to students. “When parents chose to go to this particular school, it was because of the community that they have within our school, the culture that they have,” Kpor told me.

Because she was also engaged in citywide advocacy, through a group called the Parent Leadership Advisory Council, Kpor knew that the Rochester City School District faced major challenges. Enrollment had declined from nearly thirty-four thousand in 2003 to less than twenty-three thousand last year, the result of flight to the suburbs, falling birth rates, and the expansion of local charter schools, whose student population had grown from less than two thousand to nearly eight thousand during that time. Between 2020 and 2022, the district’s enrollment had dropped by more than ten per cent.

The situation in Rochester was a particularly acute example of a nationwide trend. Since the start of the coronavirus pandemic, public-school enrollment has declined by about a million students, and researchers attribute the drop to families switching to private schools—aided by an expansion of voucher programs in many red and purple states—and to homeschooling, which has seen especially strong growth. In addition, as of last year, an estimated fifty thousand students are unaccounted for—many of them are simply not in school.

During the pandemic, Rochester kept its schools closed to in-person instruction longer than any other district in New York besides Buffalo, and throughout the country some of the largest enrollment declines have come in districts that embraced remote learning. Some parents pulled their children out of public schools because they worried about the inadequacy of virtual learning; others did so, after the eventual return to school, because classroom behavior had deteriorated following the hiatus. In these places, a stark reality now looms: schools have far more space than they need, with higher costs for heating and cooling, building upkeep, and staffing than their enrollment justifies. During the pandemic, the federal government gave a hundred and ninety billion dollars to school districts, but that money is about to run dry. Even some relatively prosperous communities face large drops in enrollment: in Ann Arbor, Michigan, where enrollment has fallen by more than a thousand students since the fall of 2019, the city is planning to lay off some ninety teachers; Santa Clara, which is part of Silicon Valley, has seen a decrease of fourteen per cent in a decade.

On September 12, 2023, less than a week after the school year started, Rochester’s school board held what appeared to be a routine subcommittee meeting. The room was mostly empty as the district’s superintendent, Carmine Peluso, presented what the district called a “reconfiguration plan.”

A decade earlier, twenty-six hundred kindergarten students had enrolled in Rochester’s schools—roughly three-quarters of the children born in the city five years before. But in recent years, Peluso said, that proportion had sunk to about half.

Within ten years, Peluso said, “if we continue on this trend and we don’t address this, we’re going to be at a district of under fourteen thousand students.” The fourth-largest city in New York, with a relatively stable population of about two hundred and ten thousand, was projecting that its school system would soon enroll only about a third of the city’s current school-age population.

Peluso then recommended that the Rochester school district close eleven of its forty-five schools at the end of the school year. Kpor, who was watching the meeting online, was taken aback. Five buildings would be shuttered altogether; the other six would be put to use by other schools in the district.

School 10 was among the second group. The school would cease to exist, and its building, with its new gymnasium-auditorium and its light-filled two-story atrium, would be turned over to a public Montessori school for pre-K through sixth grade, which had been sharing space with another school.

Kpor was stunned. The building was newly renovated. She had heard at a recent PTA meeting that its students’ over-all performance was improving. And now it was being shut down? “I was in disbelief,” she said. “It was a stab in the back.”

School Closures Are a Fact of Life in a country as dynamic as the United States. Cities boom, then bust or stagnate, leaving public infrastructure that is incommensurate with present needs. The brick elementary school where I attended kindergarten and first grade, in Pittsfield, Massachusetts, was closed in the early eighties, as the city’s population declined, and then was razed to make way for a shopping plaza.

Still, there is a pathos to a closed school that doesn’t apply to a shuttered courthouse or post office. The abandonment of a building once full of young voices is an indelible sign of the action having moved elsewhere. There is a tangible cost, too. Researchers have found that students whose schools have been closed often experience declines in attendance and achievement, and that they tend to be less likely to graduate from college or find employment. Closures tend to fall disproportionately on majority-Black schools, even beyond what would be expected on the basis of enrollment and performance data. In some cities, efforts to close underpopulated schools have become major political issues. In 2013, Chicago, facing a billion-dollar budget deficit and falling enrollment, closed forty-nine schools, the largest mass closure in the country’s history. After months of marches and protests, twelve thousand students and eleven hundred staff members were displaced.

Now, as a result of the nationwide decline in enrollment, many cities will have to engage in disruption at a previously unseen scale. “School closures are difficult events that rend the community, the fabric of the community,” Thomas Dee, a professor of education at Stanford, said. He has been collecting data on declining enrollment in partnership with the Associated Press. “The concern I have is that it’s going to be yet another layer of the educational harm of the pandemic.”

Janice Kpor knew that her family was, in a sense, part of the problem. Her oldest child, Virginia, had flourished in the early grades, so her school put her on an accelerated track, but it declined to move her up a grade, as Kpor had desired. Wanting her daughter to be sufficiently challenged, Kpor opted for the area’s Urban-Suburban program, in which students can apply to transfer to one of the many smaller school districts that surround Rochester; if a district is interested in a student, it offers the family a slot. The program began in 1965, and there are now about a thousand children enrolled. Virginia began attending school in Brockport, where she had access to more extracurricular activities.

Supporters call Urban-Suburban a step toward integration in a region where city schools are eighty-five per cent Black and Latino and suburban districts are heavily white. But critics see it as a way for suburban districts to draw some of the most engaged families out of the city’s schools; the selectiveness of the suburban districts helps explain why close to a quarter of the students remaining in the city system qualify for special-education services. (The local charter schools are also selective.) One suburban district, Rush-Henrietta, assured residents that it would weed out participants who brought “city issues” with them, as Justin Murphy, a reporter for the Rochester Democrat & Chronicle, wrote in his book, “Your Children Are Very Greatly in Danger,” a history of segregation in the city’s schools.

Kpor understood these concerns even as she watched Virginia thrive in the suburbs, then go on to attend the Rochester Institute of Technology. As Kpor saw it, each child’s situation was unique, and she tried to make decisions accordingly. “It’s where they’re at,” she said. “It’s not all or nothing for me.”

She enrolled her middle child, Steven, in School 10 for kindergarten and immediately liked the school, but stability was elusive. First, the school moved to temporary quarters for the renovation. Then came disagreements with a teacher who thought that her son’s behavioral issues stemmed from A.D.H.D. Then the pandemic arrived, and her son spent the final months of second grade and most of third on Zoom. For fourth grade, she decided to try Urban-Suburban again. He was accepted by Brockport, which sent a bus to pick him up every morning.

Other parents shared similar accounts with me of the aftermath of the pandemic closures. Ruthy Brown said that, after the reopening, her children’s school was rowdier than before, with more frequent fights and disturbances in the classroom; a charter school with uniforms suddenly seemed appealing. Isabel Rosa, too, moved her son to a charter school, because his classmates were “going bonkers” when they finally returned to in-person instruction. (She changed her mind after he was bullied by a charter-school security guard.) Carmen Torres, who works at a local advocacy organization, the Children’s Agenda, watched one of her client families get so frustrated by virtual instruction that they switched to homeschooling. “Enough is enough,” Torres recalled the mother saying. “My kids need to learn how to read.”

But, when it came time to enroll Thomasena, Kpor resolved to stick with the district, and she was so hopeful about her daughter’s future at School 10 that she took the prospect of its closure with great umbrage. She and other parents struggled to understand the decision. One of the reasons School 10 was chosen to close was that it was in receivership—a designation for public schools rated in the bottom five per cent in the state, among Peluso’s criteria for closure—but Kpor knew that the receivership was due not only to low test scores but also to the school’s high rate of absenteeism, which was, she believed, because the school roster was outdated, filled with students who were no longer there. According to a board member, the state had also placed School 10 on a list of dangerous schools, partly owing to an incident in which a student had been found with a pocketknife.

Making matters worse, for Kpor, was that the building was going to be turned over to another program, School 53, the Montessori school. It would be one thing for School 10 to be shut down because the district needed to cut costs. But the building had just been renovated at great expense, an investment intended for School 10, and now those students and teachers were being evicted to make room for others. “It was more of an insult,” Kpor said, “because now you have this place and all these kids and a whole bunch of new kids in the same building, so what is the logic of, quote-unquote, closing the school?”

The awkwardness of this was not lost on the parents of School 53. The school had a slightly higher proportion of white families and a lower one of economically disadvantaged students than School 10, and it was expected to draw additional white families once it moved to its new building. “The perception is that you’ve got the kids at this protected, special school—you can see the difference between what they get and what we get,” Robert Rodgers, a parent at School 53, told me. “If I was a parent at School 10, I would be livid.”

After Peluso announced the plan, the district held two public forums, followed by sessions at the targeted schools. The School 10 auditorium was packed for its session, and Kpor lined up at the microphone to speak. She asked Peluso if Thomasena and her classmates would get priority for placement in School 53, so that they could stay in the building. “I do not want her to go to any other school,” she said. “Every time we think we’re doing something right for our kids, someone comes in and dictates to us that our choices are not valid.” Kpor was encouraged to hear Peluso say that School 10 kids would get priority.

Janice Kpor, whose youngest child had just started at School 10 when the city announced its closure.

On October 19th, five weeks after the announcement, the school board met to vote on the closures. During the public-comment period, a teacher from School 2 pleaded with the board to let its students enroll at the school that would be replacing it. A teacher from School 106 asked that the vote be delayed until after board members visited every school, including hers, which was engaged in a yearlong special project geared toward the coming total solar eclipse, so that they could get a more visceral sense of the school’s value. The principal of School 29, Joseph Baldino, asked that the school’s many students with autism-spectrum disorder be kept together, along with their teachers, during the reassignment. “They’re unique, they’re beautiful, and they don’t do real well with change,” he said. Chrissy Miller, a parent at the school, said of her son, “He loves his staff . . . he loves his teachers, and he wants everybody to stay together as one.”

In the end, the closures passed, five to two.

In September, 2020, as many public schools in Democratic-leaning states started the new academic year with remote learning, I asked Randi Weingarten, the president of the American Federation of Teachers, whether she worried about the long-term effects on public education. What if too many families left the system in favor of homeschooling or private schools—many of which had reopened—and didn’t come back? She wasn’t concerned about such hypotheticals. “At the end of the day, kids need to be together in community,” she said.

The news from a growing number of districts suggests that the institution of public schooling has indeed suffered a lasting blow, even in cities that are better funded than Rochester. In Seattle, parents anticipate the closure of twenty elementary schools. The state of Ohio has witnessed a major expansion of private-school vouchers; in Columbus, a task force is recommending the closure of nine schools.

In Rochester, the continuing effects of the pandemic weighed heavily on some. Camille Simmons, who joined the school board in 2021, told me, “A lot of children felt the result of those decisions.” She went on, “There were a lot of entities at play, there were so many conversations going on. I think we should have brought children back much sooner.”

Adam Urbanski, the longtime president of the Rochester teachers’ union, said that the union had believed schools should not reopen until the district could guarantee high air quality, and it had not been able to. “When I reflect back on it, I know that I erred on the side of safety, and I do not regret the position that we took,” he said.

But Rebecca Hetherington, the owner of a small embroidery company and the former head of the Parent Leadership Advisory Council, the group Kpor was part of, feared that the district would soon lack the critical mass to remain viable. “I am concerned there is a tipping point and we’re past it,” she said. Rachel Barnhart, a former TV news reporter who attended city schools and now serves in the county legislature, agreed. “It’s like you’re watching institutions decline in real time,” she told me. “Anchors of the community are disappearing.” School districts have long aspired to imbue their communities with certain shared values and learning standards, but such commonality now seemed inconceivable.

By the spring of 2024, parents at the eleven targeted schools were too busy trying to figure out where their children would be going in the fall to worry about the long term. A mother at School 39, Rachel Dixon, who lived so close to the school that she could carry her kindergartner there, was on the wait list for School 52 but had been assigned to School 50. She wasn’t even sure where that was. Chrissy Miller was upset that School 29’s students with autism were being more broadly dispersed than promised; she worried that her son’s assigned school wasn’t equipped for students with special needs. Many of her fellow School 29 parents were now considering homeschooling or moving, she said, and added, “We don’t have trust in the district at all.” It was easy to envision how the closures could compound the problem, leading to even fewer students and even more closures.

Thomasena had been assigned to School 45, which was close to her family’s home but less convenient for Kpor than School 10, which was closer to her work. Kpor wondered how many other families were in similar situations, with assignments that didn’t take into account the specific context of their lives. “All of this plays into why kids are not going to school,” she said. “You’re placing kids in locations that don’t meet the families’ needs.”

She had taken Peluso’s word that students from School 10 would be given priority at the Montessori school taking its place, and she was disappointed to learn that Thomasena was thirtieth on the wait list there. It was also unclear to her which branch of the central office was handling placement appeals. “It’s all a jumble, and no one really knows how things work,” she said.

On March 26th, as families were dealing with the overhaul, Peluso announced that he was leaving the district to become the superintendent of the Churchville-Chili district, in the suburbs. The district was far smaller than Rochester, with some thirty-eight hundred students, more than seventy per cent of them white, but the job paid nearly as much. “It’s one of the hardest decisions I’ve had,” Peluso said at a news conference. “There’s a lot of commitment I’ve had to this district.” Rodgers, the School 53 parent, told me, “This hurts. It’s another situation where the suburbs are taking something from the city.”

Parents and district staff tried to make sense of Peluso’s departure. Some people speculated that he had grown tired of the treatment he was receiving from certain board members. Other people wondered if he simply wanted a less challenging district. Peluso told me, “It was the best decision for me and my family.”

In Late June, I returned to Rochester for the final days of the school year. I stayed at School 31 Lofts, a hotel in a former schoolhouse that was built in 1919. (The Web site advertises “WhimsyHistorySerenity.”) An empty hallway was still marked with a “Fallout Shelter” sign. I stayed in a room that, judging from its size and location, might have been a faculty lounge.

One afternoon, I met with Demario Strickland, a deputy superintendent who’d been named interim superintendent while the school board searched for a permanent replacement for Peluso. Strickland, a genial thirty-nine-year-old Buffalo native who moved to Rochester last year, was the seventh superintendent of the district since 2016. He told me that he was not surprised the closures had prompted such protests. “School closures are traumatic in itself,” he said.

But he defended the district against several of the criticisms I had heard from parents. School 10 had been improving, he said, but still fell short on some metrics. “Even though they met demonstrable progress, we still had to look at proficiency, and we still had to look at receivership,” he said. And, he added, School 53 had limited slots available, so the district had made no promises to parents of School 10 about having priority.

Still, he said, the district could perhaps have been more empathetic in its approach. “This process has taught me that, in a sense, people don’t care about the money,” he said. “When you make these decisions, you really have to think about the heart. That’s something we could have done a little more. It makes sense—we’re wasting money, throwing money away, we have all these vacancies, that makes sense to us. But our families don’t care about that. Our families want their school to stay open—they don’t want to do away with it.”

At the end of the academic year, Rochester closed eleven of its forty-five schools, including School 39.

I asked him whether he worried that the district’s enrollment decline might continue until the system could no longer sustain itself, as Hetherington and Barnhart feared. “I try not to get scared about the future,” he said.

On the second-to-last day of the school year, I went to School 10 to join Kpor at the end-of-year ceremony for Thomasena’s kindergarten class. She and her fourteen classmates sang songs, demonstrated spelling on the whiteboard, and rose one by one to say what they had liked best about kindergarten. “Education and learning,” Thomasena, a tall girl with her front teeth just coming in, said. “When it’s the weekend,” one boy said, to the laughter of parents.

It was not hard to see why Kpor and other parents were sorry to leave the school, with its gleaming new tile work and hardwood-composite hallway floorboards. A few weeks earlier, the latest assessment results had shown improvement for School 10, putting it close to citywide averages. “All of us are going to be going to different places, but I hope one day that I get to see you again,” the class’s teacher, Karen Lewis, said.

Kpor was still waiting to find out if she had moved up on the list for School 53. I asked if she might have Thomasena apply for Urban-Suburban, like her siblings, and she said she was hoping it would work out in the district. “I still have faith,” she said. Outside, I met a parent who was worried about how her daughter would fare at her new school after having been at School 10 with the same special-needs classmates and teacher for the past three years. “The school has been amazing,” she said.

The Next Day, I attended a school-wide Rites of Achievement ceremony in the gym. Parents cheered as students received awards for Dr. Walter Cooper Character Traits—Responsibility, Integrity, Compassion, Leadership, Perseverance, and Courage. (Thomasena won for Courage.) Thomas, the principal, called up the school’s entire staff, name by name. The shrieks from the assembled children for their favorite teachers and aides indicated the hold that even a school officially deemed subpar can have on its students and families: this had been their home, a hundred and eighty days a year, for as long as seven years.

Walter Cooper himself was there, watching from a thronelike chair with gilt edges. Eventually, he addressed the children for the last time, recounting his upbringing with a father who had received no formal schooling, a mother who preached the value of education, and six siblings, all but one of whom had gone to college. “The rule was we had to have a library card at seven. We didn’t have a lot in this community, but we had books,” he said. “There are always things in the street for you, but there is much more in books. . . . The guiding thesis is: books will set you free.”

The children sang a final song: “I am a Cooper kid, a Dr. Walter Cooper kid, I am, I am / I stand up for what’s right, even when the world is wrong.” Sylvia Cooksey, a retired administrator who is also a pastor, gave the final speech. “No matter where you go, where you end up, you are taking part of this school with you,” she said. “You are taking Dr. Walter Cooper with you. We’re going to hear all over Rochester, ‘That child is from School 10.’ ”

After the assembly, I asked Cooper what he made of the closure. “It’s tragic,” he said. “It points to the fundamental instability in the future of the schools. Children need stability, and they aren’t getting it in terms of the educational process.”

Wanda Zawadzki, a physical-education teacher who had worked at the school for eight years and received some of the loudest shrieks from the kids, stood looking forlorn. She recalled the time a class had persuaded the city to tear down an abandoned house across the street, and the time a boy had brought her smartphone to her after she dropped it outside. “My other school, that phone would have been gone,” she said. “It’s the integrity here.” Like many teachers at the targeted schools, she was still waiting for her transfer assignment. “This was supposed to be my last home,” she said.

And then it was dismissal time. It was school tradition to have the staff come out at the end of every school year and wave at the departing buses as they did two ceremonial loops around the block. Speakers blared music from the back of a pickup, and the teachers danced and waved. “We love you,” Principal Thomas called out.

It was quieter over at School 29, the school with many special-needs kids. The children were gone, and one teacher, Latoya Crockton-Brown, walked alone to her car. She had spent nineteen years at the school, which will be closing completely. “We’re not doing well at all,” she said, of herself and her colleagues. “This was a family school. It’s very disheartening. Even the children cried today.”

She was wearing a T-shirt that read “Forever School 29 / 1965 to Now.” The school had done a lot in recent days to aid the transition—bringing in a snow-cone truck and a cotton-candy machine, hosting a school dance. “One girl said she feels like she’s never going to make friends like she had here,” Crockton-Brown said. “But we have to move on. We have no other choice.” ♦

— This Article is a Collaboration Between The New Yorker and ProPublica. ProPublica is a Nonprofit Newsroom that Investigates Abuses of Power. Published in the Print Edition of the September 2, 2024, Issue, with the Headline “The Last Day.”