• Amazon workers at several warehouses went on strike on Thursday.
• The strike comes in the middle of Amazon's key holiday shopping and shipping season.
• Amazon said that it wasn't seeing an impact on its operations.

Amazon workers at seven Amazon fulfillment centers went on strike Thursday, though the retailer said it wasn't seeing effects on its holiday delivery operations.

The workers are walking off the job after Amazon refused to bargain with them over a contract, according to a statement from the Teamsters, which represents the employees.

The strike will affect three Amazon fulfillment centers in Southern California as well as one each in New York, Atlanta, San Francisco, and Illinois, according to the Teamsters. The union said it will also set up picket lines at other Amazon facilities.

The action comes in the middle of the key holiday shopping season. Amazon's highest quarterly revenue has historically come during the final three months of the year. This year, that period included the company's October Prime Day as well as deals for Black Friday.

"If your package is delayed during the holidays, you can blame Amazon's insatiable greed," Sean O'Brien, general president of the Teamsters, said in the statement.

O'Brien said that the Teamsters "gave Amazon a clear deadline to come to the table and do right by our members."

"They ignored it," he added.

An Amazon spokesperson said Thursday morning that the company hasn't seen its operations affected by the strike.

Spokesperson Kelly Nantel said in a statement that the Teamsters recruited non-employees to participate in the strike and intimidate Amazon employees. When Business Insider asked for evidence of those claims, an Amazon spokesperson said, "We know our employees, and we know they are not out there. Our employees repeatedly claim to management that they experience harassment from activists."

"We appreciate all our team's great work to serve their customers and communities, and are continuing to focus on getting customers their holiday orders," Nantel said.

Workers at some Starbucks stores were also preparing for a potential strike this week. On Tuesday, a union representing about 10,000 baristas said its members had voted to authorize a strike, though negotiations with Starbucks have continued and no strike date has been set.

Do you work for Amazon and have a story idea to share? Reach out to this reporter at [email protected]

Stumped on what to get my mom for Christmas this year, I turned, desperately, to Perplexity AI's chatbot. In response to my initial broad question: "What should I get my mom for Christmas?," the robo-elf gave me links to several gift guides published on sites including Target and Country Living. Then the chatbot suggested generic favorites like a Stanley mug and a foot massager. But as I scrolled, it also dropped links directly to more esoteric gifts, including a mug with Donald Trump on it. "You are a really, really great mom," the mug read. "Other moms? Losers, total disasters." I hadn't given Perplexity any indication of political ideology among my family, but the bot seemed to think sipping from Trump's visage every morning was a gift any mother would love. Then it suggested I make a jar and stuff it with memories I've written down. A cute idea, but I did let Perplexity know that I'm in my 30s — I don't think the made-at-home gift for mom is going to cut it.

'Tis the season to scramble and buy tons of stuff people don't need or really even want. At least that's how it can feel when trying to come up with gifts for family members who have everything already. Money has been forked over for restaurant gift cards that collect dust or slippers and scarves that pile up; trendy gadgets are often relegated to junk drawers by March. As artificial intelligence becomes more integrated into online shopping, this whole process should get easier — if AI can come to understand the art behind giving a good gift. Shopping has become one of Perplexity's top search categories in the US, particularly around the holidays, Sara Platnick, a spokesperson for Perplexity, tells me. While Platnick didn't comment directly on individual gift suggestions Perplexity's chatbots makes, she tells me that product listings provided in responses are determined by "ratings and its relevance to a user's request."

There are chatbots to consult for advice this holiday season, like Perplexity and ChatGPT, but AI is increasingly seeping into the entire shopping experience. From customer-service chatbots handling online shopping woes to ads serving recommendations that follow you across the web, AI's presence has ramped up alongside the explosion of interest in generative AI. Earlier this year, Walmart unveiled generative-AI-powered search updates that allow people to search for things like "football watch party" instead of looking for items like chips and salsa individually; Google can put clothes on virtual models in a range of sizes to give buyers a better idea of how they'll look. In a world with more options than ever, there's more help from AI, acting as robo-elves in a way — omnipresent and sometimes invisible as you shop across the web.

For the indecisive shopper, AI may be a silver bullet to choosing from hundreds of sweaters to buy, plucking the best one from obscurity and putting an end to endless scrolling — or it might help to serve up so many targeted ads that it leads people to overconsume.

Either way, AI has been completely changing the e-commerce game. "It allows a company to be who the customer wants it to be," says Hala Nelson, a professor of mathematics at James Madison University. "You cannot hire thousands of human assistants to assist each customer, but you can deploy thousands of AI assistants." Specialization comes from using third-party data to track activity and preferences across the web. In a way, that's the personalized level of service high-end stores have always provided to elite shoppers. Now, instead of a consultation, the expertise is built on surveillance.

Companies also use AI to forecast shopping trends and manage inventory, which can help them prepare and keep items in stock for those last-minute shoppers. Merchants are constantly looking for AI to get them more — to bring more eyes to their websites, to get people to add more items to their carts, and ultimately to actually check out and empty their carts. In October and early November, digital retailers using AI tech and agents increased the average value of an order by 7% when compared to sites that did not employ the technology, according to Salesforce data. The company predicted AI and shopping agents to influence 19% of orders during the week of cyber deals around Thanksgiving. And AI can help "level the playing field for small businesses," says Adam Nathan, the founder and CEO of Blaze, an AI marketing tool for small businesses and entrepreneurs.

"They don't want to necessarily be Amazon, Apple, or Nike, they just want to be the No. 1 provider of their service or product in their local community," Nathan says. "They're not worried about AI taking their job — they're worried about a competitor using AI. They see it as basically a way to get ahead."

AI early adopters in the e-commerce space benefited last holiday season, but the tech has become even more common this year, says Guillaume Luccisano, the founder and CEO of Yuma AI, a company that automates customer service for sellers that use Shopify. Some merchants that used Yuma AI during the Black Friday shopping craze automated more than 60% of their customer-support tickets, he says. While some people lament having to deal with a bot instead of a person, Luccisano says the tech is getting better, and people are mostly concerned about whether their problem is getting solved, not whether the email came from a real person or generative AI.

After my ordeal with Perplexity, I turned to see how ChatGPT would fare in helping me find gifts for the rest of my family. For my 11-year-old cousin, it suggested a Fitbit or smartwatch for kids to help her "stay active." A watch that tracks activity isn't something I feel comfortable giving a preteen, so I provided some more details. I told ChatGPT she loved the "Twilight" series, so it suggested a T-shirt with the Cullen family crest and a "Twilight"-themed journal to write fan fiction. It told me I could likely find these items on Etsy but it didn't give me direct links. (As her cool millennial cousin who has lived to tell of my own "Twilight" phase in 2007, I did end up buying a makeup bag from Etsy with a movie scene printed on it.) I also asked ChatGPT for suggestions for my 85-year-old grandpa, and it came up with information about electronic picture frames — but the bulk of our family photos are stuffed in albums and shoeboxes in his closet and not easily digitized.

I could navigate this list because these are deep contextual things that I know about my family members, something AI doesn't know yet. Many of the best gifts I've ever received are from friends and family members who stumbled upon something they knew I would love — a vinyl record tucked in a bin or a print from an independent artist on display at a craft show. AI can play a role in helping people discover new items they may never have known to buy online, but it can't replace that intuition we have when we find the perfect thing for a loved one. "We're still really wrestling with: How accurate is it? How much of a black box is it?" says Koen Pauwels, a professor of marketing at Northeastern University. "Humans are way better still in getting cues from their environment and knowing the context." If you want to give a gift that's really a hit, it looks like you'll still have to give the AI elves a helping hand.

Amanda Hoover is a senior correspondent at Business Insider covering the tech industry. She writes about the biggest tech companies and trends.

• Lacoste is using AI tech Vrai to detect counterfeit returns.
• Return fraud costs retailers billions, with billions lost globally.
• Amazon and other retailers face scams exploiting return policies for financial gain.

Spotting designer knockoffs is now easier than ever.

French luxury brand Lacoste is using Vrai, an AI technology developed by Cypheme, a leader in anti-counterfeit artificial intelligence, to catch scammers returning counterfeit items.

Trained on thousands of images of genuine merchandise, Vrai aims to distinguish real products from fakes with 99.7% accuracy, according to Semafor.

At its warehouses, Lacoste employees can snap a picture of a returned item with Vrai and verify its authenticity. The AI model can detect subtle discrepancies, from a slight variation in color to an extra tooth in the brand's signature crocodile logo.

Represenatives for Lacoste and Cypheme did not respond to Business Insider's request for comment,

The technology combats return fraud — a growing practice of exploiting return and refund processes for financial gain. Often, it involves returning different items for a refund. Some companies have even received boxes full of bricks after customers banked refunds for items like televisions.

Total returns for the retail industry came to $743 billion in merchandise in 2023, according to a report released by the National Retail Federation and Appriss Retail. US retailers lost a little over $100 billion in return fraud, or around $13.70 for every $100 returned, up from $10.40 per $100 in 2022.

Major retailers are frequent targets of such scams. In July, Amazon filed a federal lawsuit accusing a Telegram group of stealing more than 10,000 items through fraudulent returns. Members of the group fabricated stories to convince Amazon customer service to refund their accounts, sometimes even using falsified police reports.

Amazon, along with other online giants like Walmart, Target, and Wayfair, were also targeted by a crime ring that recruited legitimate shoppers to purchase items, have them refunded, and then keep or resell the goods. According to a federal indictment, the group exploited a "no-return refunds" policy that allows customers to get refunds without physically returning items—an option many retailers have implemented to reduce return costs for both themselves and consumers.

• Adobe reports record $7.9 billion in online spending on Black Friday so far, up 8.2% from 2023.
• Adobe expects final online Black Friday numbers to be between $10.7 and $11 billion.
• Inflation and high credit card debt make consumers cautious, yet spending remains resilient.

Americans continued to spend on Black Friday after strong Thanksgiving sales numbers, even despite inflation concerns.

Adobe's initial Black Friday e-commerce data reveals consumers spent $7.9 billion online this Black Friday through 6:30 p.m. This total is up 8.2% compared to last year's value.

With spending expected to accelerate between 8 and 10 p.m., Adobe expects final online Black Friday numbers to be between a record $10.7 and $11 billion, in line with the $10.8 billion estimates from its Black Friday preview.

Shoppers were eager to buy skin and hair care products, air fryers, PlayStation 5 consoles, and Wicked-related toys. Black Friday sales continue to trend this holiday season with greater electronics, cosmetics, and appliance sales compared to average October 2024 sales, according to the data.

"Adobe is reaffirming its forecast that a new e-commerce record will be set on Black Friday and surge past the $10 billion mark," said Vivek Pandya, lead analyst of Adobe Digital Insights, in a statement. "This is being driven by big discounts in advance of Cyber Monday, as well as the continued acceleration of mobile commerce that is contributing to more impulse shopping."

However, many Americans are still cautious about spending as inflation remains above the Federal Reserve's 2% target. As of October 2024, the inflation rate was 2.6% year over year.

Retail researchers told The Washington Post that though consumer spending has remained resilient, record-high credit card debt and sticker shock over the last few years have made consumers — particularly those who are lower- or middle-income — more intentional about spending and alert to price comparisons. Consumers continue to flock to discount retailers while going to some big box stores like Target less often.

Shoppers have been increasingly relying on buy-now-pay-later purchases. This Black Friday, consumers are expected to spend $711.3 million using BNPL online — up 12.8% year over year — and $430 million on Thanksgiving.

Adobe data shows that Thanksgiving spending hit a record high this year. This Thanksgiving, consumers spent $6.1 billion online, up 8.8% from last year's $5.6 billion. Nearly 60% of online sales were from a mobile device, with sales peaking between 8 p.m. and 10 p.m.

Pandya said in a statement that this Thanksgiving had larger-than-anticipated discounts, which drove impulse shopping. Toys had discounts peak at 27.2% off the listed price, while apparel was 22.6%.

Consumers were willing to shell out hundreds of dollars on electronics, as Adobe data reveals the most expensive electronics goods had a 72% increase in the share of units sold compared to pre-season trends. Sporting goods increased by 44%, while appliances spiked by 36% compared to pre-season trends.

Adobe expects $5.2 billion in spending on Saturday, $5.6 billion on Sunday, and $13.2 billion on Cyber Monday, up 6.1% from last year.

Adobe is anticipating the greatest discounts on computers, peaking at 23% off the listed price. Adobe projects $40.6 billion in online spending this Cyber Week and $240.8 billion in total holiday spending.

• Even as online Black Friday shopping increases, people still formed lines at stores across the US.
• Crowds descended on stores like Best Buy and shopping centers like the American Dream mall.
• Target attracted in-person Black Friday shoppers with exclusive in-store Taylor Swift merchandise.

The ease of online shopping and the disruption of in-person events at the height of the COVID-19 pandemic have continued to impact attendance at Black Friday doorbuster sales, but shoppers still turned out at stores in large numbers this year.

In 2023, Black Friday online shopping hit a record high with a total of $9.8 billion spent — a 7.5% increase from 2022, according to an Adobe report.

Even so, shopping in person the day after Thanksgiving hasn't completely died out. Of the 131.7 million people expected to shop on Black Friday in 2024, 65% said they planned to shop at stores in person, according to the National Retail Federation's annual survey.

Retailers like Target also drew customers to brick-and-mortar locations by releasing exclusive Taylor Swift merchandise in-store on Black Friday before making it available online the following day.

Take a look at Black Friday crowds across the US.

The parking lot at Citadel Outlets in Commerce, California, was already packed on Thursday night.

Shoppers lined up outside retailers like H&M, Kate Spade, and Tory Burch at Citadel Outlets to await their turn.

Lines formed outside Macy's flagship store in New York City early in the morning on Black Friday.

Target's exclusive Taylor Swift merchandise attracted a line of Swifties in Jersey City, New Jersey.

Fans picked up copies of "The Eras Tour Book" and exclusive versions of Swift's latest album, "The Tortured Poets Department."

Shoppers also waited outside Best Buy in Downey, California, in the early hours of the morning on Black Friday.

At the American Dream Mall in New Jersey, shoppers were drawn to experiences like its Nickelodeon Universe theme park, not just its stores.

Of course, the American Dream mall's retail offerings still proved popular.