Amazon is one of the most popular and successful online retailers in the world. It has always been the first choice for many looking for particular products. The question thus becomes, how has Amazon been able to maintain being in the top spot despite the emergence of other similar online retailers? The answer is pretty simple. It is all about using strategies that involve various marketing tactics meant to attract a huge number of customers. They are as follows.
Price Comparison
This is a marketing tactic Amazon uses whereby the prices of the most popular products are low and the prices of the less popular products are high. If for instance a flat screen digital television costs $350, Amazon would consistently price them under the competition and the television could cost as low as $250 which is well below other competitive retailers. What the buyer does not realize is the prices for the accessories that come with the television like cables which are less popular go up and a shopper might end up paying more than the initial price of $350.
Free Shipping Offers
If you think free shipping is actually free on Amazon, then you are in for a surprise. Amazon Prime Membership costs $99 annually and it guarantees a two day free shipping and two hour delivery in certain areas. Amazon needs to recover that lost cost and they do so for instance by getting customers to increase the number of items in their shopping carts. Customers are also persuaded to pay extra for the Prime Membership in order to get better “benefits”.
Kindle Promotions
Amazon Kindle customers spend more money in comparison with non-Kindle owners. They also buy expensive items in addition to being frequent shoppers. The amount spend for Kindle owners per year is $1450 compared to $725 from non-Kindle owners.
To conclude, these are the tricks that have made Amazon become a multi-million empire. It is also convenient and reliable hence customers feel more at ease shopping from this website.
