On February 20, 2023 and with little fanfare, the AmazonSmile program officially shut down.

For some of you reading this, you may be saying, “really, they shut it down? I had no idea!” For others, you are saying, “what the heck was AmazonSmile?” Allow me to respond to both camps mixed with my opinion of this move.

What it was

Back in 2013, the retail behemoth introduced the AmazonSmile program as a way of giving to charities supported by their customers. For every purchase made by a customer who signed up for the program and visited Amazon with a special link, 0.5% of every purchase of items eligible for AmazonSmile went to a charity who is enrolled in the program.

Those 2 previous sentences are packed with conditions that must have been met for a charity to earn that percentage. First, you the consumer had to sign-up for the program as well as navigate to the link smile.amazon.com – yes, you had to do this, as any purchases made at www.amazon.com would not count. Really. Of course that navigating was done in a Web browser (e.g. Safari, Chrome) and early on purchases made with their mobile app didn’t count. These alone led to many of my purchases not counting towards my contribution.

A charity must also enroll in the program, as you couldn’t just designate the Mike Maddaloni Society of Reflection and Coffee as your charity. Once an organization was accepted, you could choose them as the destination for your half-percent of purchases. You could also change charities at will, as I have done over time. Originally I had my kiddos first school as they were an early adopter of AmazonSmile, but when we moved, I chose their new school. On top of this, there were occasional items that didn’t qualify towards AmazonSmile contributions; I never looked into why this was, as I only saw it infrequently as I shopped their platform.

Why shut it down?

I first heard about the shutdown in a roundabout way, and with some searching I found this official announcement on Amazon’s corporate blog. Interestingly, I never received an email on this, but I digress. In smaller circles I saw news stories on it, such as this article from the Associated Press that quoted Amazon spokespeople as well as charities impacted by this. But by and large, this passing went by without much attention.

I’ll let you read both of those linked stories above, but I will share my interpretation of what happened. A quote from an Amazon spokesperson said they were making a “strategic shift” and those 2 words also pack a lot. First off, Amazon doesn’t need a program like this – after the lockdowns over the past few years, people’s shopping habits have moved more and more virtual with Amazon being a major beneficiary of this. With their recent layoff announcements, they and many other companies are cutting back and an assumption that they are cutting this simply to reduce overhead costs isn’t an unfair assumption. Plus a CEO handing a giant Happy Gilmore-style check to an equally giant charity makes for better public relations than an anonymous check arriving in the mailbox of a needy charity. Blend in global inflation and recession and all of this is only amplified.

Define impact

Learning about this a mere few days before the program closed and disappeared from their Web site, I decided to take a look at my own impact, which you can see in the screenshot below:

As you can see, in the almost half decade I was using AmazonSmile, my family and I helped raise a whopping $117.51 for charities. Not a lot, eh? But again we are merely one shopping family with the previously-mentioned caveats.

Another way to look at this is in a glass half full way; as AmazonSmile is going away, enter local distribution centers and delivery in your area and the jobs that come with this. Though to some charities it may be a slap in the face to see an Amazon truck driving through a neighborhood that is losing a quarterly charity donation from its owner. Where one economic door closes, another opens.

Speaking of economics, one way to express your disappointment with this move by Amazon is to shop elsewhere. Granted the convenience of throwing things into your cart and ordering whenever is not to be dismissed, but many of the items you are shopping for may be available in local stores you likely have forgotten about. Check them out – you may be pleasantly surprised.

How do you feel about AmazonSmile’s departure? I welcome your comments to this blog post at thehotiron.com.

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This is from The Hot Iron, a journal on business and technology by Mike Maddaloni.

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