Amazon.com is the undisputed king of retail. Bigger than Walmart. According to reports, Amazon’s sales soared to $135.99 Billion in 2016. Up from $107 Billion in 2015.
Maybe the headline here should be 100 Billion reasons to buy on amazon.
Why is this important?
There is a reason that Amazon is outperforming every other retailer on the planet. Many reasons. Let’s talk about just five of them.
Trust is often listed as number one. While online buying is no longer new, many have yet to make a purchase online. For those who do, Amazon has proven its trustworthiness.
From the early days of selling books to the present, a very long list of customers have given the platform a thumbs up.
Chances are, if someone is making it, Amazon is selling it. The uniqueness of the sales platform makes a huge difference.
If you want a wrench you shop at a hardware store. If you need food, you visit the grocery story. If you are short on underwear it’s a clothing store. You get the point. Amazon has all of it.
But Walmart Super Centers have all that. Yes they do, but not nearly the options. A quick search for ‘wrench’ on Amazon and we find there are 63,905 options.
Find that at Walmart, or Home Depot. Both are fine stores but they don’t have what Amazon has.
When shopping in a traditional brick and mortar store, the products available come from hundreds of manufacturers. The makers and distributors of the store’s inventory.
In most cases, the retailer has purchased the product and sells it in their retail outlets. It’s why Macy’s and others have buyers. They pick the product and then sell it to you. They hope it’s what you want.
There are exceptions of course, but the retailer will generally own all the product in the store. They buy their inventory.
Not so with Amazon. Twenty years ago when Amazon started selling only books, they inventoried none of the titles. Amazon simply took the order and arranged the title to be drop shipped by the book distributor. Soon, they added music. Today, it’s everything from soap to saddles.
In 2016, while generating nearly $140 Billion in sales, they are still selling other people’s product. Taking orders and sending it out.
In a program known as Fulfillment By Amazon (FBA), the product is owned by the maker, the marketer or the distributor. Amazon does not own the inventory.
Over time, in a remarkably successful effort to assure timely shipping, Amazon built distribution centers to inventory third party products. The owner of the product pays Amazon a fee to have product in Amazon’s warehouse.
Product is ready to ship when sales occurs. The two day delivery promise for Amazon Prime customers is a result.
There is a difference between value and price. In many cases, Amazon is ahead regardless of the definition you chose to use.
If you were to scan a barcode at Walmart and compare the price to Amazon, you might be amazed how often Amazon is selling the exact same (UPC) product at a lower price.
What’s interesting in this value proposition, is many Amazon users don’t care if they save money, or pay more at Amazon. See reason number five below.
If value means something like ‘true worth’ then Amazon rates well.
- There is worth in knowing how far the seller will go to make you happy.
- There is worth in knowing that reviews are published and that the seller verifies the review. It is from an actual buyer of the product.
- There is worth in knowing that the seller will make all things right.
Many retailers offer quality customer service, Many have a no questions asked return policy. Many will offer a price guarantee. Amazon does all this. Value is not something that is missing at the worlds largest retailer.
Service, when dealing with retail can be summed up with, Getting what you paid for. Amazon, a platform where the buyer picks the product from a picture, having doubts could be a issue.
Sometimes it is the wrong color, size, or is broken, but usually, it’s what you ordered. When it’s not, Amazon fixes it.
There are times when your shipment never arrives. When it does happened, the experience can usually be laid at the feet of the post office.
There are thousands of customer reviews on Amazon. Because it’s an online service, every product has to be shipped. Occasionally something gets lost.
In reading a review on a late delivery, you’ll see that Amazon takes the blame. If they screw up, they admit it. No excuses offered. If a UPS truck crashes with your package in it, you’ll know that too.
This may belong at the top. The convenience of shopping from the sofa can not be overstated.
Shopping can be done in your pajamas while it’s raining outside. But that is just the beginning.
A lady mentioned that she buys nearly everything from Amazon. Dog food was one example she used. It’s delivered to her door two days after she orders.
Amazon Prime is the reason. After joining Amazon Prime, all orders fulfilled by Amazon are delivered in two days, guaranteed. And the shipping is free.
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At the risk of offending Walmart shoppers, the buying experience at Walmart can be just that. An experience. Facebook users will get it. They have seen the posts. Many have gone viral. There is a lot you wish you hadn’t experienced.
Those sorts of events don’t happen when shopping from your favorite chair.
There are more than 300 million active users on Amazon.com. There are a whole host of reasons for the popularity of the retail giant. The five reasons listed here are important. Amazon buyers will usually cite one of them for buying online. There are many more.
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