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Three months ago they unionized. Now a strike by Amazon contract drivers is heating up

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Three months ago they unionized. Now a strike by Amazon contract drivers is heating up

Two days after Amazon Prime Day, a group of over 60 Palmdale Amazon contract drivers, backed by Teamsters and community members, picketed outside Amazon’s ONT 5 warehouse, blocking trucks from entering or leaving the San Bernardino facility.

They waved signs demanding that Amazon recognize their contract, which stipulates a $30-per-hour wage by September, and safe working conditions, as they marched across the street in 95-degree heat.

The July 13 picket was one of 10 that these drivers have organized at Amazon warehouses in Michigan, Georgia and other states since they went on strike last month. Though they made deliveries for Amazon, they worked for Palmdale-based Battle-Tested Strategies, which since 2019 has been one of many small companies that Amazon contracts with to run the retailing giant’s short-distance deliveries under its Delivery Service Partner program.

Amazon canceled its contract with BTS in June, citing “poor performance.” Since then, the Palmdale contract drivers, who unionized with the Teamsters last April, have engaged in an unfair labor practice strike, demanding that Amazon recognize and bargain with their unit.

Cecilia Ozier is one of the contract drivers who formerly made deliveries for Amazon through BTS from DAX8, Amazon’s Palmdale facility. She said BTS employees unionized in hopes of getting higher wages and better working conditions, but the company refused to meet with the drivers’ union.

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“Some vans really don’t have AC and we tell them and they don’t do anything about it. Sliding doors don’t open, which are used to get the packages in and out,” said Ozier, who led Thursday’s picket and also has traveled to pickets in New Jersey, Connecticut and Massachusetts. “ It’s too hot out there. And we work hard for $19.75. Who’s that going to help? I live paycheck to paycheck.”

The level of responsibility that Amazon has for the drivers and their well-being is disputed by the shipping giant. Amazon says that the subcontracted drivers are not Amazon employees, and has not agreed to bargain with their union. In a statement to The Times, Amazon spokesperson Eileen Hards said that at Amazon, vehicles without properly functioning air conditioning are immediately removed from service and that its delivery partners decide on break times and pay rates.

“The Teamsters are being intentionally misleading and continue to promote a false narrative. Their contract is with Battle Tested Strategies, not Amazon,” Hards stated. “The facts remain that months ago, Amazon terminated its contract with Battle Tested Strategies effective June 24. That company and their employees no longer deliver Amazon packages.”

The dispute leading up to the strike began in late April, when 84 Palmdale contract drivers for Amazon joined Teamsters Local 365, settling a tentative contract with BTS, which agreed to voluntarily recognize the union. At the time, BTS owner Johnathon Ervin told Bloomberg News that he hoped to include Amazon in the bargaining process to further enhance the morale and welfare of the drivers.

However, on April 14, weeks before the union’s public announcement, Amazon told Ervin that it would terminate its contract with BTS on June 24, months before it was originally set to expire in October. Hards said that Amazon canceled the contract due to six breaches of contract including failing to pay its insurance providers. In mid-June, Ervin told Wired that he was contesting the breaches and that he resolved three of the breaches last year, although they remained on BTS’ record. He claimed that Amazon ended the contract because he had voiced concerns about his employees’ working conditions.

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The Teamsters allege that Amazon terminated BTS’ contract in retaliation for the drivers unionizing and have filed a complaint against Amazon with the National Labor Relations Board.

The director of the Teamsters’ Amazon division, Randy Korgan, said that the level of control Amazon had over the drivers’ working conditions, which included dictating routes and performance expectations, meant the retail giant was acting as a joint employer with BTS and therefore was ignoring its responsibility to bargain with the drivers.

“In my 30 years I’ve never seen a more restrictive relationship between a company and its subcontracting agency,” Korgan said. “We’re trying to show Amazon that they need to rewrite their operations because what they’re doing is illegal. Their business model has been misleading. We didn’t rewrite the facts. We’re taking what Amazon did and holding them accountable.”

United Parcel Service drivers, who are also represented by the Teamsters and do some deliveries for Amazon, reached a tentative contract with UPS this Wednesday, averting a potential national strike. The union said the new UPS contract will set “a new standard in the labor movement.”

Amazon contract drivers and allies picket outside of Amazon’s San Bernardino warehouse on July 13.

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(Mariana Duran/Los Angeles Times)

As the popularity of online shopping has grown, so has the logistics industry’s presence in Southern California. Over 1,100 warehouses have been constructed in the area since 2010, the Guardian reported in December. Amazon, which has invested hundreds of millions of dollars in the region, opened a regional air hub in San Bernardino in 2021, the seventh Amazon air site in California, and has plans to finish construction of its largest fulfillment center in Ontario in 2024. It also operates a number of logistics centers across the region.

Recent years have also seen more union drives at Amazon warehouses in California and other states, with mixed results. Last April, workers at an Amazon warehouse in Staten Island, N.Y., voted to unionize with the grassroots Amazon Labor Union, becoming Amazon workers’ first U.S. union. The company continues to challenge the results. This month, the NLRB ordered Amazon to bargain in good faith with those employees, finding merit to a series of complaints that alleged Amazon had violated labor laws by refusing to come to the bargaining table.

In Riverside County, a group of Amazon warehouse workers in Moreno Valley filed a petition to hold a union election last October but withdrew it weeks later after Amazon challenged whether the organizers had gathered enough signatures. Amazon workers in Bessemer, Ala., held a second union vote in 2022, after losing the first in 2021, but with a narrow vote difference, objections and contested ballots on both sides, the results are still too close to call. Last month, the NLRB ordered a hearing for September to go over these contested votes and allegations of unfair labor practices.

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The Palmdale contract drivers are not the first employees of an Amazon delivery partner to unionize. In 2017, drivers working for Silverstar Delivery in Brownstown, Mich., voted to join the Teamsters. But weeks later, some drivers reported they were fired for joining the union, and a shop steward told BuzzFeed News that Silverstar had shut down its Michigan location months after. Although the Teamsters named Amazon in a labor complaint related to the matter, according to Buzzfeed News, Amazon told the NLRB it was a contractor, and not the drivers’ employer.

The model with which large employers like Amazon subcontract work to other companies is becoming increasingly common, said Ellen Reese, chair of the labor studies program at UC Riverside, who studies warehouse and labor economics in the Inland Empire. Under this structure, Reese said, it becomes more difficult for workers to exercise their rights and bargain collectively with their employers.

“I think the case involving the drivers in Palmdale is really important,” Reese said. “This campaign, if it’s successful, will set a precedent that employers can’t just contract away the rights of their workers and that they still have responsibilities to provide good terms of employment to people that help their businesses to run.”

Drivers first staged a walkout from the DAX8 Palmdale facility on June 15, demanding that Amazon recognize and bargain with the Teamsters union over pay and working conditions. They walked out again on June 24, the day their contract would be terminated, starting the ongoing strike.

“After unionizing, we feel like we’ve got more power on our hands to be able to not just defend ourselves, but to defend even the little people out there that don’t have a voice or are too scared to stand up for what’s right,” said Heath Lopez, who worked as a delivery driver at Amazon’s Palmdale facility the past three years.

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In the weeks since, the strike extended to other parts of California and other states. Drivers have also continued to picket at the DAX8 Palmdale facility six or seven days a week, said Teamsters Communications Director Alex Moore.

Workers striking at Amazon’s DDT6 hub in Pontiac, Mich., invited delivery drivers to join their picket line so they would stand in solidarity with one another, said Alicia Ozier, an employee and union organizer at the facility. Much like the Palmdale drivers, Ozier said, Pontiac workers struck July 14 for increased safety protections, stricter regulations for dealing with extreme heat and higher pay. She said that prior to the strike, she experienced retaliation for her organizing efforts.

“We’re all employees of Amazon. We’re all getting the same unfair, unjust treatment,” she said.

Amazon did not respond to questions about the strike at its Pontiac facility. Hards said the company doesn’t retaliate for union organizing.

Several community groups and local unions are supporting the Palmdale drivers. During the San Bernardino picket on July 13, Tania González, an Inland Empire activist with the People’s Collective for Environmental Justice, noted the intersections between environmental and labor justice in her community, where warehouse-related pollution has become a growing concern for residents.

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“These workers did begin their fight because of the heat issues with the facilities,” González said. “Climate change is getting worse. Their conditions within their trucks and the facilities are not getting any better with climate change. So it’s important for us to support them.”

Contract drivers picket at Amazon's San Bernardino warehouses.

Heat, and higher pay, have been at the forefront of striking Amazon drivers’ demands.

(Mariana Duran/Los Angeles Times)

Strengthening heat protection measures has been at the center of some Amazon workers’ unionizing efforts. Workers in Pontiac who walked out earlier this month said Amazon’s industrial fans and temperature control systems weren’t sufficient to combat hot conditions.

Similarly, last summer, workers in San Bernardino’s Amazon Air hub walked off the job, demanding higher pay and relief from what they said were unsafe work conditions caused by extreme heat. A few of the Amazon Air workers joined drivers’ pickets in San Bernardino and Palmdale this July. So far this month, the average daily temperature in Palmdale has ranged from 69 to 110 degrees, and from 61 to 102 degrees in San Bernardino.

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During previous summers when he worked as a Palmdale Amazon contract driver, Lieb said conditions in his van were often worse during the week around Amazon’s Prime Day, as he was often expected to deliver more packages in the same amount of time.

“Prime week should never be in the peak season of the heat,” Lieb said.

Hards said Amazon has a robust heat mitigation plan and that the company’s heat-related safety protocols often exceed industry standards and federal guidance. She said professionals monitor these systems and can take extra steps if needed.

“The health and safety of our employees is always our top priority,” she said.

Amazon, Hards said, is committed to the “safety of drivers and the communities where they deliver,” was investing in supplies to help the drivers stay cool and hydrated and strongly encouraged drivers affected by the heat to return to the station.

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Korgan said he expected the Palmdale drivers’ pickets to keep growing to include more warehouse workers and community members.

“Amazon wants to create a narrative that this is a futile process, that these are outsiders,” Korgan said. “These are working people fighting to have middle class jobs.”

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The lowdown on inherited IRAs

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The lowdown on inherited IRAs

Dear Liz: I inherited my mother’s Roth IRA when she died in 2015 and have been taking yearly required minimum distributions based on my age. My spouse is my primary beneficiary on this inherited Roth IRA. What happens if I pass away before she does? Can she just roll it over into her existing Roth IRA, as is generally permitted for spousal IRA inheritance? Or are there additional limits imposed because it becomes a “doubly inherited” Roth IRA?

Answer: The SECURE Act largely eliminated the so-called stretch IRA that allowed non-spouse beneficiaries to take distributions over their lifetimes. IRAs inherited on or after Jan. 1, 2020, must typically be drained within 10 years.

That likely would be the case for your wife. Special rules allow a spouse to treat an inherited IRA as their own, but only when they inherit from the original IRA owner, says Mark Luscombe, principal analyst for Wolters Kluwer Tax & Accounting.

There are a few exceptions. Your wife may be able to spread the distributions over her lifetime if she is disabled or chronically ill, for example.

If that’s not the case, she’s back to draining the account within 10 years. Many inherited IRAs require annual distributions. Since this is a Roth IRA, however, the original owner would not have been required to start distributions. Therefore, the spouse of the inherited Roth IRA beneficiary does not have a requirement to distribute annually over the 10-year period but may wait until the end of the 10-year period to do the full distribution, Luscombe says.

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Dear Liz: I am in my late 50s, married and woefully unprepared financially for my later years. I was a stay-at-home mom for many years. I now work almost full time but my employer has no 401(k) or profit sharing or really any benefits at all. I just started putting $8,000 (the catch-up amount) into my Roth IRA. What else can I do now to make up for lost time?

Answer: You can’t really make up for the decades of compounded returns you missed by not investing earlier. But you can make some smart decisions now for a more comfortable retirement.

Your most important decision likely will be how you and your spouse claim Social Security. Your spouse almost certainly should wait to claim until age 70 to maximize their lifetime benefit and to lock in the highest possible survivor benefit. If you outlive your spouse, this benefit could comprise the bulk of your income. Consider reading “Get What’s Yours,” a book about Social Security claiming strategies by Laurence J. Kotlikoff and Philip Moeller. Just make sure to get the updated version that was published in 2016, since earlier versions refer to strategies that Congress eliminated.

Delaying retirement is another powerful way to compensate for a late start, since you’ll have more years to work and save. Consider finding an employer who will help you secure your future by providing a 401(k) with a generous match. You’ll be able to contribute substantially more to a workplace retirement plan than you would to a Roth.

You and your spouse should consider hiring a fee-only financial planner to review your situation and offer customized advice.

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Dear Liz: You recently responded to an elderly couple who planned to move into assisted living, but were concerned about capital gains taxes on the sale of their home. You suggested an installment sale or renting out the home as possible options. While not for everyone, another possibility is a home loan or a reverse mortgage to cash out tax free.

Answer: Reverse mortgages have to be repaid if the borrowers die, sell or permanently move out of their homes. If one of the spouses planned to stay in the home, a reverse mortgage might work, but not if both plan to move to assisted living.

A home equity loan or home equity line of credit might be options if the couple have good credit, sufficient income to make the payments and a cooperative lender. A tax pro or a fee-only financial planner could help them assess their options.

Liz Weston, Certified Financial Planner®, is a personal finance columnist. Questions may be sent to her at 3940 Laurel Canyon, No. 238, Studio City, CA 91604, or by using the “Contact” form at asklizweston.com.

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Plastic Spoons, Umbrellas, Violins: A Guide to What Americans Buy From China

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Plastic Spoons, Umbrellas, Violins: A Guide to What Americans Buy From China

Photo Illustration by Zak Bickel/The New York Times; Photographs via Getty; Unsplash

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Tariffs are up. Tariffs are down. Shipping is frozen. Shipping is back on.

In the past several weeks, Chinese imports to the U.S. have been on a seesaw, leaving Americans uncertain how tariffs will affect their lives.

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It’s impossible to say what tariffs will do to the price or availability of any particular item, although even the Trump administration’s current level of 30 percent tariffs — on top of previous levies — will certainly make many things more expensive.

But thanks to detailed trade data, we know what Americans buy from China, and how much of it, and thus what might be most sensitive to future swings in trade status.

Here are several ways of understanding what’s on those container ships, based on 2024 data from the U.S. International Trade Commission.

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First, the products where the greatest share of our imports are Chinese imports:

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Goods Americans import almost exclusively from China

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ITEM Imports
from China
in millions
1 Baby carriages $380
2 Artificial plants $991
3 Umbrellas $491
4 Filing cabinets $88
5 Vacuum flasks $1,634
6 Fireworks $465
7 Children’s picture books $505
8 Portable lighting $901
9 Combs $367
10 Travel kits $42

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This list is the simplest way to think about which Chinese goods the U.S. relies on most. But percentages aren’t everything. Americans buy so much from China that even goods with smaller imported shares from there could still be significantly affected by tariffs.

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Chinese goods that Americans spend the most on

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ITEM Imports
from China
in millions
1 Telephones $50,085
2 Computers $35,473
3 Electric batteries $17,022
4 Other toys $13,463
5 Motor vehicles; parts and accessories $9,059
6 Video and card games $7,083
7 Video displays $6,770
8 Electric heaters $6,607
9 Seats $6,582
10 Packaged medications $6,146

This list skews slightly toward more expensive goods that the average American purchases infrequently, particularly electronics. But the International Trade Commission also tracks how many of each good the U.S. imports.

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Chinese goods with huge U.S. import quantities

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ITEM Items imported
from China
in millions
1 Plastic housewares 67,895
2 Other plastic products 19,158
3 Plastic lids 13,688
4 Electrical capacitors 12,125
5 Semiconductor devices 11,368
6 Electrical resistors 9,276
7 Other toys 6,390
8 Other cloth articles 5,466
9 Shaped paper 3,895
10 Low-voltage protection equipment 3,626

In that list, you can see Americans’ well-documented reliance on China for plastic products.

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Many of America’s major imports from China are consumer goods: things you buy for yourself, like clothes, housewares or entertainment. Drill down into those categories and specific products stand out.

For example, American wardrobes are somewhat dependent on China: about a fifth of U.S. clothing imports. But a majority of neckties and gloves and pantyhose are imported from China.

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Clothing

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ITEM Imports
from China
in millions
1 Hosiery $149
2 Neckties $52
3 Gloves $724
4 Handkerchiefs $13
5 Women’s and girls’ bathrobes $217

Includes knit and non-knit clothing. Excludes leather, plastic and rubber clothing. Various fibers combined into single categories.

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The U.S. is more reliant on China for things made with polyester and nylon (like pantyhose) than for those made with cotton.

Athletes, especially racket-sport players, are also dependent on China:

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Sporting goods

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ITEM Imports
from China
in millions
1 Badminton or similar rackets $64
2 Equipment for table tennis $34
3 Lawn-tennis rackets $41
4 Gym and athletic equipment $1,652
5 Other sports and pool equipment $1,345

There are also consumer-goods categories whose “Made in China” status may not be as well known. For example, the U.S. gets a lot of its imported string instruments — such as violins and cellos — from China.

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Musical instruments

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ITEM Imports
from China
in millions
1 String musical instruments played with a bow $31
2 Brass-wind instruments $49
3 Percussion musical instruments $42
4 Wind musical instruments except brass $48
5 Grand and upright pianos $4.8

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The Japanese company Yamaha manufactures some of its instruments in China, including trumpets and drums.

The U.S. also relies on China for many of its vitamins …

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Vitamin derivatives

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ITEM Imports
from China
in millions
1 Vitamin B6 $32
2 Vitamin B1 $43
3 Vitamin B12 $59
4 Vitamin C $139
5 Vitamin B3 and B5 $35

… and eels. (China has a robust eel farming industry.)

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Fish

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ITEM Imports
from China
in millions
1 Preserved eel $38
2 Frozen cod-like fish $8.5
3 Frozen tilapia fillets $308
4 Dried, salted and brined cod-like fish fillets $37
5 Frozen flatfish fillets $58

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Includes processed, frozen, fresh and live fish.

Then there are the goods that the U.S. imports primarily to put inside other things, like car parts.

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Car parts

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ITEM Imports
from China
in millions
1 Vehicle windshields and window parts $358
2 Motor vehicle wheels and accessories $1,338
3 Vehicle parts: brakes, servo-brake and parts $1,697
4 Bumpers and parts for motor vehicles $79
5 Seat belts for motor vehicles $11

The U.S. relies heavily on Chinese imports to build electric vehicles in particular: Some 70 percent of its imported lithium-ion batteries are from China.

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Even batteries made in the U.S. often rely on raw materials from China, particularly graphite. (China tightened its export controls on graphite at the end of last year, so this year’s numbers could end up looking very different.)

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Critical minerals used in E.V. batteries

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ITEM Imports
from China
in millions
1 Graphite and artificial graphite $376
2 Manganese ores, oxides and articles $86
3 Cobalt ores, oxides, hydroxides and articles $9.8
4 Nickel ores, oxides, hydroxides, sulphates and raw nickel $30
5 Lithium oxide, hydroxide and carbonate $2.6

Mr. Trump’s newest tariffs are not the only levies imposed on Chinese goods, and there’s a complicated interplay of which tariffs apply to which products. Some goods that a lot of Americans buy received exemptions from the latest tariffs (though perhaps not future ones), including one item the U.S. imports almost exclusively from China: children’s books.

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Select exempted goods

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ITEM Imports
from China
in millions
1 Children’s picture, drawing or coloring books $505
2 Smartphones $40,675
3 Portable computers $32,169

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That’s a window into what Americans buy from China. But for some imports, the U.S. doesn’t rely on China. It’s a list that includes large vehicles, precious metals and tomatoes, all of which America imports largely from other countries.

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Goods that the U.S. imports the least from China

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ITEM Total imports
in millions
1 Delivery trucks $47,524
2 Other precious metal products $21,231
3 Planes, helicopters, and/or spacecraft $18,309
4 Diamonds $15,938
5 Raw aluminum $10,113
6 Refined copper $8,627
7 Platinum $6,973
8 Wine $6,697
9 Other fruits $5,923
10 Silver $5,088

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Imports value includes all countries, not just China. Includes categories where less than 0.5 percent of goods are from China.

It’s also worth noting what America exports to China. Though the U.S. sends fewer goods to China than it receives, these could still be affected in a trade war. (China has been instituting its own exemptions, which are broader than those of the U.S.)

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Goods that the U.S. exports the most to China

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ITEM Exports
to China
in millions
1 Soybeans $12,761
2 Civilian aircraft $11,522
3 Integrated circuits $8,716
4 Vaccines, blood, antisera, toxins and cultures $6,680
5 Petroleum gas $6,187
6 Crude petroleum $6,160
7 Cars $4,931
8 Machines used to manufacture semiconductor devices, electronic integrated circuits or flat panel displays $4,170
9 Medical instruments $3,460
10 Scrap copper $2,795

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Export value includes only exports to China, not other countries.

To let you take a closer look at what America does and doesn’t import from China, we’ve included a searchable list below of all goods for which the U.S. imported at least $20 million (from any country) in 2024, excluding America’s major exports.

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About the data

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We analyzed U.S. International Trade Commission data on goods imported for consumption in 2024. We used product descriptions from the Observatory of Economic Complexity to label the goods, and edited these descriptions lightly.

For the lists of major imports and exports, and the full searchable list, we grouped goods using the first four digits of their code in the Harmonized Tariff Schedule, which lists categories of products. For more specific lists of goods within these categories, we looked at the first six digits of the product code.

We excluded goods that are widely produced in the U.S., using export data to remove goods where the U.S. exports at least 50 percent of what it imports by value. (We did not do this for the critical minerals or imports by quantity data.)

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AI is changing shopping. Will consumers buy in?

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AI is changing shopping. Will consumers buy in?

Carolyn Bennett remembers flipping through a yellow telephone book in the 1980s to find carpet stores and workers who refinished wood to help renovate her home.

Today, the 67-year-old uses a chatbot to help her shop. Bennett has turned to ChatGPT, which she refers to as “Chat,” to find vendors for a kitchen renovation project, compare heat pumps and weigh in on whether she should buy a convection oven.

The San Francisco resident could have browsed websites on Google, but she prefers using ChatGPT to save time.

“Any product that has multiple features that you want to compare across different products, I think it’s super helpful,” she said.

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The rising popularity of artificial intelligence-powered chatbots that can generate text and images is already changing the way people brainstorm ideas, write and research. Tech companies and payment services are also betting that AI will transform how people shop. They’re even experimenting with AI agents that can place orders on a customer’s behalf with their permission.

Google, Amazon and other major tech platforms envision a future where online shopping becomes even more personalized and proactive. But companies will also have to convince consumers to buy into the idea, ensuring them that they’re protecting their privacy and providing accurate results.

AI chatbots have spewed out incorrect or nonsensical information before. And shoppers might be reluctant to give control to AI agents, especially when it comes to handing them their credit card, some retail experts said.

“There’s a lot of concern about the reliability of these kinds of tools,” said Rachel Wolff, a retail and ecommerce analyst at eMarketer. “So you might not want to trust these agents fully to make decisions on your behalf.”

For now, AI shopping experiences are growing. Last month, OpenAI said it’s experimenting with new shopping features, including a way to see images and prices of several products along with links for people to buy the items.

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Perplexity, which introduced a new feature last year that allows subscribers to buy items through its chatbot, also teamed up with Visa to help improve its shopping experience in the future.

“Visa knows a lot about its customers, and if customers opt in, there can be that anonymized data sharing, so that the recommendations you get in Perplexity are in line with your kind of purchase and transaction history so you can get better quality answers,” said Dmitry Shevelenko, Perplexity’s chief business officer.

(The Los Angeles Times partners with Perplexity to generate summaries of ideas expressed in opinion pieces.)

These efforts are still early, but AI companies are also trying to differentiate themselves from rivals such as Amazon and Google that also have chatbots and AI shopping features. Both Perplexity and OpenAI note the products shown within their chatbots are not ads. The chatbots cite websites that review and rate mattresses, coffee makers and other products.

Google also is stepping up its AI shopping features as it competes with OpenAI. Last week, the search giant said in the coming months people will be able to use AI mode, a tool where people can ask questions and get answers like they would to a chatbot, to find and compare products. The tool is powered by Google’s AI model Gemini.

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Vidhya Srinivasan, who leads the Ads and Commerce teams at Google, said Monday in a press briefing before Google’s annual I/O developers conference that the company displays search results in AI mode based on what’s most relevant to questions people are asking.

Some of the results also highlighted reviews from websites, but Google has more than 50 billion product listings and that information gets refreshed.

“We’re doing even more personalization in this mode, where we get to personalize based on brands and styles,” Srinivasan said.

The Mountain View-based company is exploring and experimenting with ads in their AI shopping experiences. Google unveiled other AI shopping tools, including a way to try out clothes virtually and buy products when the price falls.

Visa executives say they envision a future in which AI agents will book plane tickets, hotel rooms and other services and products on behalf of the customer with their approval.

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Rajat Taneja, president of technology for Visa, said that people will be able to set limits around what an AI agent could purchase like when someone hands over their credit card to a friend, family member or assistant, to help them shop.

The San Francisco-based payment company, partnering with such AI companies as OpenAI, Perplexity and Anthropic, unveiled a new initiative in late April to enable AI agents to shop and buy products for people but that work is still being tested.

Product recommendations, he said, will only get more personalized in the future.

“They’re going to be different ways in which this will manifest itself, much like the analogy of the internet has evolved in so many different ways,” Taneja said. “The most important thing is we are all unique, in our likes, in our dislikes, in what we gravitate towards and what we buy.”

Consumers are already using generative AI for shopping, research shows. Adobe Analytics, which surveyed 5,000 U.S. consumers, said that 39% reported using generative AI for online shopping and 53% planned to do so this year. Shoppers used generative AI for research, product recommendations, deals and other shopping tasks, according to the survey.

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Capgemini Research Institute, which surveyed 12,000 adult consumers across 12 countries, found that 24% of consumers used generative AI in shopping experiences. The use was higher among Gen Z and millennials compared to Gen X and boomers. But the survey also found that consumer satisfaction with generative AI also fell.

Elliot Padfield, a 21-year-old growth marketing consultant in San Francisco, uses AI for other tasks but he says the shopping experience has fallen short. As a result, he doesn’t always trust a chatbot’s recommendations.

When he tried out shopping on Perplexity for the first time, his order never arrived but he was able to get a refund.

And while chatbots can provide a comparison of four types of wireless headphones, for example, he wants more information about how the recommendations fit his needs and priorities.

“I still have to guide the AI through supporting me in the way that I need it to,” he said. “I actually find it easier at that point to then just go to the retailer.”

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From going to the mall to shopping on websites or through social media, retail experts see generative AI as just another option for consumers.

Retailers will have to learn how to navigate chatbots that might not recommend their products. But AI could also level the playing field for small businesses, experts say, if the results aren’t based on optimizing for a search engine or buying a ton of ads.

Caroline Reppert, director of AI and Technology Policy at the National Retail Federation, said she thinks generative AI is here to stay. Ultimately retailers will meet consumers where they are, she said.

“The trend is kind of still emerging and we’ll see if it ends up being an enduring one,” Reppert said.

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