Benefits and opportunities for Amazon of having an online presence
P4
Purchase History available to help selling technique
Amazon are able to see the purchase history of customers, because you have to have an
Amazon account to be able to buy. This means they can send emails to customers with
recommendations of products to buy based on what they’ve seen before, as well as being able
to recommend on the Amazon site products based on previous purchases.
This relates to product, because it is offering a product for customers to buy. This also relates
to promotion, because they are promoting a product (through email, or recommendations).
M2
Being able to promote to customers using their purchase history means they are likely to
recommend products the customer will actually want to buy as the recommendations are more
targeted, this means customers are more likely to spend more money which will increase
Amazon's profits.
P4
Quicker response times
Amazon have an Amazon Prime service, where products can be delivered quicker than usual.
Customers getting their products quicker means Amazon is able to get the money quicker.
This is related to Product, as they offer a service (Amazon Prime) to the customer, it also
relates to Price because Amazon Prime requires the customer having an Amazon Prime
Membership which costs money.
M2
Amazon Prime being able to deliver quickly (next day on a lot of products) it means that
customers can get things they order quickly so there are more likely to use Amazon rather than
go to stores for things they need quickly. This means they are likely to buy other stuff on
Amazon too, so it helps to increase Amazon’s profits and loyal customers.
P4
Market Development
Because Amazon is an online-only site, they are able to expand their business easier than
physical stores because their store is not limited for space - they can put as many products as
they want on their site. They also don’t have to have stores which look tidy and easy to look
around with all the products, so they can have lots of warehouses which don’t need to be easy
to get around from people apart from employees.
This is related to Place, because Amazon does not have a physical store location, they are
able to expand as much as they want and do not need to worry about being able to fit it into an
offline store.
, M2
This benefits Amazon because the more products they offer, the more likely they are to have a
wider customer base, and it also means customers are more likely to use Amazon often
because they know what they want will probably be on there so they will become more loyal
customers which will help to increase Amazon’s profits.
P4
Lower entry costs for smaller businesses
It is cheaper for a business to set up online and offline, because online you do not need a
physical store, and if it is a very small business you can do it all on your own from your home so
don’t need the costs of a store, employees etc. Amazon allows sellers to sell on their websites,
so small businesses can do this and only have to pay Amazon a percentage of their sales rather
than having to pay to set up, build and maintain a website of their own.
This relates to Price, because it is cheaper for people to sell on Amazon than to have their own
online store and these cheaper running prices may also decrease the price for the customer
because the seller does not need to cover extra costs.
M2
This benefits Amazon because it is cheaper to have an online store than to have a physical
store because they don’t need to pay for physical stores which are more expensive than
warehouses because they are usually in retail parks or on the high street where it is expensive
to rent. Amazon also benefit as they have smaller businesses using their site to sell their own
product and they get a share of the sale.
P4
Virtual Service
Amazon have videos of some products which lets customers to get a better look of the size of
a product as well as how it works etc. Customers can also zoom in and out on pictures and see
360 views of some products. Amazon also have trailers for moves they sell / rent and have on
Amazon Prime Video.
This relates to Promotion, as the videos and the ability to zoom in and out etc, on a product
image help to promote it and the trailers for videos also help to promote as people can see a
hint of the product before buying.
M2
Amazon benefit from this because being able to see a video of a product etc. can make a
product stand out and make a customer feel better about buying it as they are better able to see
what they are ordering, this increases trust between customer and Amazon and also can help to
boost sales.
P4
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