Exploring Amazon: From Bookstore to E-commerce Giant and

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Grand Canyon University **We aren't endorsed by this school
Course
MKT -415
Subject
Marketing
Date
Apr 18, 2023
Pages
4
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Amazon Summary Amazon is the largest online retailer company in the world today. In 1994, Jeff Bezos quit his job as an investment banker and started creating Amazon in his garage with just a few employees. Amazon first started off as a bookstore and as time went on it morphed into an internet-based business (Yasar, K., & Wigmore, I., 2022. Para. 2). In 1995 he sold his first book. Amazon focuses on distribution from books, e-readers, web hosting, tv, clothes, and much more. They have amazing opportunities for people who want to get their name and brand out there. This is referred to as the third-party seller, and it enables anyone to utilize Amazon as a platform to offer their goods directly to customers. There is 60% of products that are sold on the Amazon platform. In 2020 about 80.5 billion dollars were from third parties (Robinson, J., 2022. Para.12). The products that Amazon sells are pretty reliable, checking the reviews, shipping policies, and ratings is going to also help you figure out if the product is what you want. By checking the reviews, you are able to gauge how other people felt about the product and see how many stars that person has. "The information contained in reviews is very helpful for both the shoppers and product makers" (Techboomers.com., 2022. Para. 8). If a person has a higher rating, they are going to be more reliable than if they had a one-star rating and the product owner is going to be able to fix that problem and make it better from what the reviews said. "Amazon also takes a more hands-on approach to customer service than its top competitor ebay.com" (Wedjdane, N., Khaled, R., & Okba, K. 2021). They make sure that if there is a problem with your order then they will respond to your concerns and work with you to resolve the problem. Amazon has many different competitors including Target, Walmart, E-bay, Costco, and many more. They have created so many different branches of the amazon brand that in-person stores are having to fight the online market. For example, Amazon started Amazon Fresh which
is an online and physical grocery store. They "offer low prices on everyday favorites, plus free same-day delivery and pickup in select locations for Prime members" (Amazon Fresh Groceries., n.d., Para 1) By creating this it gives people the opportunity to not leave the house and get what they need. Amazon is "likely to add pressure to an already highly competitive market" because they are offering lower prices than the competing stores to help you save on groceries and other products (C-stores..., 2015. Para. 2). People want to have the lowest prices they can get. What is so interesting is that Amazon and Walmart have very similar target markets. But Amazon is "still fighting to win over lower-income shoppers... one of [they're] biggest priorities [is to attract them to the prime membership]" (Carmely, M., 2022. Para. 13-14). This is because Walmart is more accessible and not as expensive as Amazon. Have you ever wondered what kind of people want to buy at Amazon? The three segments we are going to be focusing on are Behavioral, Psychographic, and Demographic. In psychographics, we have easygoing, determined, ambitious, any social class, and much more. In behavior, we have 37% of nonprime purchases multiple times a year whereas 48% of people with prime purchase at least once a week and 78% every few weeks. People think that it's easy and resourceful to go online and buy what they need then and there. Amazon also personalizes what you might want by what you have looked up or bought. Amazon's demographic looks at people ages 18-60 with about 45% 35-49 years old. While many people who buy from amazon are single, married, or have kids' amazon focuses on middle-aged families with an annual household of $85,000 (The average..., 2020. Para. 3+10).
References: Amazon Fresh Groceries . (n.d.). from https://www.amazon.com/fmc/m/30003175? almBrandId=QW1hem9uIEZyZXNo Carmely, M. (2022, July 11). Amazon Target Market & Customer Segmentation: Who is Amazon's Target Audience? 2022 Overview . Start.io - a Mobile Marketing and Audience Platform. from https://www.start.io/blog/amazon-target-market-customer-segmentation/ C-stores face online shopping challenge; The launch of Amazon Fresh will add pressure to a competitive market. (2015, July 31). Convenience Store. https://eds-p-ebscohost- com.lopes.idm.oclc.org/eds/detail/detail?vid=7&sid=85f1e95a-33f8-4a3b-a86d- a6e2d034477f%40redis&bdata=JnNpdGU9ZWRzLWxpdmUmc2NvcGU9c2l0ZQ%3d %3d#AN=edsgcl.611934597&db=edsggo Robinson, J. (2022, July 19). What Is a Third-Party Seller on Amazon - How It Works? | SageSeller . SageSeller for Amazon Sellers #1 Seller Tool. from https://sageseller.com/blog/how-can-third-party-sellers-make-money-on-amazon/ Techboomers.com. (2022, March 11). Is Amazon Safe, Trustworthy, and Reliable? + 6 Safety Tips . TechBoomers.com. from https://techboomers.com/t/is-amazon-safe The average Amazon shopper still earns more than Walmart's, and it reveals a key challenge for the e-commerce giant. (2020, January 25). The Business Insider (Blogs on Demand). Wedjdane, N., Khaled, R., & Okba, K. (2021). Better Decision Making with Sentiment Analysis of Amazon reviews. 2021 International Conference on Information Systems and Advanced Technologies (ICISAT), Information Systems and Advanced Technologies (ICISAT), 2021 International Conference On, 1-7. https://doi- org.lopes.idm.oclc.org/10.1109/ICISAT54145.2021.9678483
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