That's the mainstream narrative, which lags the actual reality (cutting through socialthink) by a good 5 years. Amazon needed to do something about this 7+ years ago, like introduce trusted supply chains and distill the gensym brands into useful singular results. At this point these problems have become embedded in their operations, and the incentives are such to keep them going while papering over ill effects.

But every large business ultimately relies on cognitive dissonance and reality distortion fields to maintain their relevance. Amazon has been seemingly successful at keeping people buying into their sunk cost fallacy ("Prime"), so momentum wise I'm sure they'll be fine.