The Nonlinear Library LW - WSJ: Inside Amazon's Secret Operation to Gather Intel on Rivals by trevor
Apr 25, 2024
08:29
Welcome to The Nonlinear Library, where we use Text-to-Speech software to convert the best writing from the Rationalist and EA communities into audio. This is: WSJ: Inside Amazon's Secret Operation to Gather Intel on Rivals, published by trevor on April 25, 2024 on LessWrong.
The operation, called Big River Services International, sells around $1 million a year of goods through e-commerce marketplaces including
eBay,
Shopify,
Walmart and
Amazon AMZN 1.49%increase; green up pointing triangle.com under brand names such as Rapid Cascade and Svea Bliss. "We are entrepreneurs, thinkers, marketers and creators," Big River says on its website. "We have a passion for customers and aren't afraid to experiment."
What the website doesn't say is that Big River is an arm of Amazon that surreptitiously gathers intelligence on the tech giant's competitors.
Born out of a 2015 plan code named "Project Curiosity," Big River uses its sales across multiple countries to obtain pricing data, logistics information and other details about rival e-commerce marketplaces,
logistics operations and payments services, according to people familiar with Big River and corporate documents viewed by The Wall Street Journal. The team then shared that information with Amazon to incorporate into decisions about its own business.
...
The story of Big River offers new insight into Amazon's
elaborate efforts to stay ahead of rivals. Team members attended their rivals' seller conferences and met with competitors identifying themselves only as employees of Big River Services, instead of disclosing that they worked for Amazon.
They were given non-Amazon email addresses to use externally - in emails with people at Amazon, they used Amazon email addresses - and took other extraordinary measures to keep the project secret. They disseminated their reports to Amazon executives using printed, numbered copies rather than email. Those who worked on the project weren't even supposed to discuss the relationship internally with most teams at Amazon.
An internal crisis-management paper gave advice on what to say if discovered. The response to questions should be: "We make a variety of products available to customers through a number of subsidiaries and online channels." In conversations, in the event of a leak they were told to focus on the group being formed to improve the seller experience on Amazon, and say that such research is normal, according to people familiar with the discussions.
Senior Amazon executives, including Doug Herrington, Amazon's current CEO of Worldwide Amazon Stores, were regularly briefed on the Project Curiosity team's work, according to one of the people familiar with Big River.
...
Virtually all companies research their competitors, reading public documents for information, buying their products or shopping their stores. Lawyers say there is a difference between such corporate intelligence gathering of publicly available information, and what is known as corporate or industrial espionage.
Companies can get into legal trouble for actions such as hiring a rival's former employee to obtain trade secrets or hacking a rival. Misrepresenting themselves to competitors to gain proprietary information can lead to suits on trade secret misappropriation, said Elizabeth Rowe, a professor at the University of Virginia School of Law who specializes in trade secret law.
...
The benchmarking team pitched "Project Curiosity" to senior management and got the approval to buy inventory, use a shell company and find warehouses in the U.S., Germany, England, India and Japan so they could pose as sellers on competitors' websites.
...
Once launched, the focus of the project quickly started shifting to gathering information about rivals, the people said.
...
The team presented its findings from being part of the FedEx program to senior Amazon logistics leaders. They used the code name "OnTime Inc." to refer to FedEx. Amazon made changes to its Fulfillment by Amazon service to ...
The operation, called Big River Services International, sells around $1 million a year of goods through e-commerce marketplaces including
eBay,
Shopify,
Walmart and
Amazon AMZN 1.49%increase; green up pointing triangle.com under brand names such as Rapid Cascade and Svea Bliss. "We are entrepreneurs, thinkers, marketers and creators," Big River says on its website. "We have a passion for customers and aren't afraid to experiment."
What the website doesn't say is that Big River is an arm of Amazon that surreptitiously gathers intelligence on the tech giant's competitors.
Born out of a 2015 plan code named "Project Curiosity," Big River uses its sales across multiple countries to obtain pricing data, logistics information and other details about rival e-commerce marketplaces,
logistics operations and payments services, according to people familiar with Big River and corporate documents viewed by The Wall Street Journal. The team then shared that information with Amazon to incorporate into decisions about its own business.
...
The story of Big River offers new insight into Amazon's
elaborate efforts to stay ahead of rivals. Team members attended their rivals' seller conferences and met with competitors identifying themselves only as employees of Big River Services, instead of disclosing that they worked for Amazon.
They were given non-Amazon email addresses to use externally - in emails with people at Amazon, they used Amazon email addresses - and took other extraordinary measures to keep the project secret. They disseminated their reports to Amazon executives using printed, numbered copies rather than email. Those who worked on the project weren't even supposed to discuss the relationship internally with most teams at Amazon.
An internal crisis-management paper gave advice on what to say if discovered. The response to questions should be: "We make a variety of products available to customers through a number of subsidiaries and online channels." In conversations, in the event of a leak they were told to focus on the group being formed to improve the seller experience on Amazon, and say that such research is normal, according to people familiar with the discussions.
Senior Amazon executives, including Doug Herrington, Amazon's current CEO of Worldwide Amazon Stores, were regularly briefed on the Project Curiosity team's work, according to one of the people familiar with Big River.
...
Virtually all companies research their competitors, reading public documents for information, buying their products or shopping their stores. Lawyers say there is a difference between such corporate intelligence gathering of publicly available information, and what is known as corporate or industrial espionage.
Companies can get into legal trouble for actions such as hiring a rival's former employee to obtain trade secrets or hacking a rival. Misrepresenting themselves to competitors to gain proprietary information can lead to suits on trade secret misappropriation, said Elizabeth Rowe, a professor at the University of Virginia School of Law who specializes in trade secret law.
...
The benchmarking team pitched "Project Curiosity" to senior management and got the approval to buy inventory, use a shell company and find warehouses in the U.S., Germany, England, India and Japan so they could pose as sellers on competitors' websites.
...
Once launched, the focus of the project quickly started shifting to gathering information about rivals, the people said.
...
The team presented its findings from being part of the FedEx program to senior Amazon logistics leaders. They used the code name "OnTime Inc." to refer to FedEx. Amazon made changes to its Fulfillment by Amazon service to ...