Many people thought online shopping would be an evanesce. It would never challenge traditional ¨brick-and-mortar¨ retailers. However, after making $75 billion Amazon CEO Jeff Bezos believes in two key essential philosophies that has proven the naysayer wrong is customer service and price. The first and most significant point is ¨putting the customer at the center of everything we do¨ while applying ¨an intense focus on cost and efficiency resulting in lower prices.¨ (Kerin & Hartley, 2015) Amazon and online shopping have several advantages over traditional retailers.As mentioned earlier by CEO Jeff Bezos statement, prices are lowered to be competetive. This equates to a daily low price, which in practice is usually lower than when
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Shipping fees at Amazon are waived for two day delivery if you pay an annual fee of $99. Shipping rates for corporations are contracted by volume. Higher the volume, lower the rate. These rates are substantially lower over what a consumer would pay to ship the exact item. Not only with Amazon, but equally with all online orders the consumer must read the fine print. Terms and conditions may apply to certain items costing the consumer. Hidden fees or cost are associated if you neglect the legalese. When you purchase an item from a store that is defective, you can return it and get a replacement quickly. This is not the case with online orders. Shipping it back to Amazon for a replacement can take up to five business days for the complete process. Smaller items may not be an inconvenience. However, if it is a major appliance or computer then the disruption of service can be contentious hot button for a …show more content…
Epic battles in the past have been fought with advertising agencies specially targeted to increase brand recognition and sales. Today with computer technology, the two titans are fighting a new war on the internet. ¨A few years ago, Walmart was the undisputed ruler of retail. Its $444 billion in revenue in 2012 was 16 times the revenue of Amazon and equal to 3% of the U.S. economy. It was the third-most valuable American company and the most valuable retailer by a wide margin. But then a new narrative began to appear. As online retail growth surpassed that of Walmart’s traditional retail model, a rivalry emerged between Walmart and Amazon, as price wars broke out. Today, Walmart’s revenue is still much larger–although only 5 times larger now–and Amazon’s revenue per employee ($623,000) is nearly three times that of Walmart.¨ (Kelleher,
Shipping fees at Amazon are waived for two day delivery if you pay an annual fee of $99. Shipping rates for corporations are contracted by volume. Higher the volume, lower the rate. These rates are substantially lower over what a consumer would pay to ship the exact item. Not only with Amazon, but equally with all online orders the consumer must read the fine print. Terms and conditions may apply to certain items costing the consumer. Hidden fees or cost are associated if you neglect the legalese. When you purchase an item from a store that is defective, you can return it and get a replacement quickly. This is not the case with online orders. Shipping it back to Amazon for a replacement can take up to five business days for the complete process. Smaller items may not be an inconvenience. However, if it is a major appliance or computer then the disruption of service can be contentious hot button for a …show more content…
Epic battles in the past have been fought with advertising agencies specially targeted to increase brand recognition and sales. Today with computer technology, the two titans are fighting a new war on the internet. ¨A few years ago, Walmart was the undisputed ruler of retail. Its $444 billion in revenue in 2012 was 16 times the revenue of Amazon and equal to 3% of the U.S. economy. It was the third-most valuable American company and the most valuable retailer by a wide margin. But then a new narrative began to appear. As online retail growth surpassed that of Walmart’s traditional retail model, a rivalry emerged between Walmart and Amazon, as price wars broke out. Today, Walmart’s revenue is still much larger–although only 5 times larger now–and Amazon’s revenue per employee ($623,000) is nearly three times that of Walmart.¨ (Kelleher,