Amazon.com is the world’s largest retail stores which was founded in 1994 in Seattle, Washington DC. Amazon sells in a vast majority of categories from books, electronics to jewelry. The online retailer highly recommended itself in the world and currently is the world’s frequently visited retail website.
Over the years Amazon has been striving to offer its customers the best shopping experience at a competitive price. Owning to a far-reaching strategy, Amazon became the most customer-centric online retailer. In order to become the world’s leading online retailer, Amazon mainly focused its attention on pricing, vast product selection and customer convenience. First and foremost, they concentrated on the customer interface trying to make it …show more content…
Thus, Amazon tries to lower prices in these high-traffic categories with the aim of generating more revenue from sales and retain loyal customers. In less visited categories prices are comparably expensive. Another competitive advantage that Amazon has is the fact that they do not care if they lose money on some items to gain customers. Amazon has everyday deals for their customers. Many other retails wait for holidays or end of season sales to discount items. This proves to be very smart and extremely successful strategy to keep best-selling products at competitive prices and products in less visited categories as upsells. Given successful nature of online retail stores, there are thousands of competitors in the market selling the same category products as Amazon does. In order to stay competitive and remain its leading position in the market it is becoming challenging for the Amazon to constantly investigate and keep an eye on competitors pricing strategies. Amazon has the most impressive product’s distribution channels in the global market today in retail. Their distribution strategy is aligned with their business model and their mission is improving customer’s experience by increasing communication responsiveness and expediting service delivery. Amazon opens their online market to sellers and …show more content…
Amazon must continue to use a pricing strategy that is fully aligned with its business. Lowering prices on products might discourage customers from purchasing. The best technique is deciding where to position the product and determining the best price that is commensurate to the buyer and the market share. Marking prices too low on any merchandise devalues the product. A retailer such as Amazon do not want to make the price too low where it takes them out of the retail game where they can be over bid by competitors and take a financial loss by market
Over the years Amazon has been striving to offer its customers the best shopping experience at a competitive price. Owning to a far-reaching strategy, Amazon became the most customer-centric online retailer. In order to become the world’s leading online retailer, Amazon mainly focused its attention on pricing, vast product selection and customer convenience. First and foremost, they concentrated on the customer interface trying to make it …show more content…
Thus, Amazon tries to lower prices in these high-traffic categories with the aim of generating more revenue from sales and retain loyal customers. In less visited categories prices are comparably expensive. Another competitive advantage that Amazon has is the fact that they do not care if they lose money on some items to gain customers. Amazon has everyday deals for their customers. Many other retails wait for holidays or end of season sales to discount items. This proves to be very smart and extremely successful strategy to keep best-selling products at competitive prices and products in less visited categories as upsells. Given successful nature of online retail stores, there are thousands of competitors in the market selling the same category products as Amazon does. In order to stay competitive and remain its leading position in the market it is becoming challenging for the Amazon to constantly investigate and keep an eye on competitors pricing strategies. Amazon has the most impressive product’s distribution channels in the global market today in retail. Their distribution strategy is aligned with their business model and their mission is improving customer’s experience by increasing communication responsiveness and expediting service delivery. Amazon opens their online market to sellers and …show more content…
Amazon must continue to use a pricing strategy that is fully aligned with its business. Lowering prices on products might discourage customers from purchasing. The best technique is deciding where to position the product and determining the best price that is commensurate to the buyer and the market share. Marking prices too low on any merchandise devalues the product. A retailer such as Amazon do not want to make the price too low where it takes them out of the retail game where they can be over bid by competitors and take a financial loss by market