Amazon.com, Inc. (NASDAQ:AMZN) is shipping expired food

Amazon.com, Inc. (NASDAQ:AMZN) is shipping expired food

Amazon.com, Inc. (NASDAQ:AMZN) is shipping expired food

Amazon’s sprawling marketplace, consisting of millions of third-party sellers, has become a go-to site for many grocery shoppers, especially since the company’s acquisition of Whole Foods over two years ago.

But an increasing number of consumers are finding that, just as the broader Amazon Marketplace has a major issue with counterfeits and unsafe products, the grocery section is littered with similarly problematic items in the form of expired foods.

From baby formula and coffee creamer to beef jerky and granola bars, items are arriving spoiled and well past their sell-by date, Amazon customers say. Interviews with brands, consumers, third-party sellers and consultants all point to loopholes in Amazon’s technology and logistics system that allow for expired items to proliferate with little to no accountability. Consumer safety advocates worry that as the marketplace grows, the problem will only get worse.

Within Amazon’s $900 billion empire, food sellers are among the more than 2.5 million businesses using the site for distribution, a group that now accounts for 58% of the company’s total merchandise sold. Third-party merchants sell products, new and used, from all over the world that they purchase from official distributors, flea markets and clearance aisles.

CNBC scanned the site’s Grocery & Gourmet category, finding customer complaints about expired hot sauce, beef jerky, granola bars, baby formula and baby food, as well as six-month-old Goldfish crackers and a 360-pack of coffee creamer that arrived with a “rancid smell.” A data analytics firm that specializes in the Amazon Marketplace recently analyzed the site’s 100 best-selling food products for CNBC and found that at least 40% of sellers had more than five customer complaints about expired goods.

Closeout sales and liquidation warehouses can be a hotbed for expired food that ends up on Amazon. In 2017, when Starbucks announced it was shuttering its Teavana locations, many sellers purchased discounted tea-related merchandise from the stores and resold it on Amazon. Today, you can find Teavana products such as rock sugar and fruit teas listed on Amazon even though they were discontinued two years ago.

For one Teavana listing, the top customer review says the tea had a “terrible chemical smell” possibly from spoiled fruit. The listing also clearly shows a “not for resale label,” which is alarming, said Sarah Sorscher, deputy director of regulatory affairs at the Center for Science in the Public Interest, or CSPI, a consumer advocacy group.

“At least someone in the supply chain considered these not suitable to be offered for consumption,” Sorscher said.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 1,823.13.

The projected lower bound is: 1,688.88.

The projected closing price is: 1,756.00.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 72.8017. This is not an overbought or oversold reading. The last signal was a sell 0 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 48.96. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 51 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 92. This is not a topping or bottoming area. The last signal was a sell 0 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 5 period(s) ago.

Rex Takasugi – TD Profile

AMAZON COM closed down -29.970 at 1,757.510. Volume was 5% above average (neutral) and Bollinger Bands were 49% narrower than normal.

Open     High      Low     Close     Volume___
1,787.8001,793.9801,749.2001,757.510 3,366,091
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1,743.86 1,778.73 1,794.49
Volatility: 20 24 29
Volume: 2,684,691 3,048,734 4,048,670

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

AMAZON COM is currently 2.1% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of AMZN.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on AMZN.O and have had this outlook for the last 15 periods.

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