As the world's largest cross-border e-commerce platform, domestic entrepreneurs have invested in the platform and started operating stores. Today we will learn about Amazon's marketing model to help everyone quickly understand Amazon.
What is Amazon's marketing model?
Amazon's main business model is online sales, mainly in cooperation with book publishers. Amazon is not a product producer, but a medium, a platform, which builds a platform and a channel between booksellers and consumers. Display products through the powerful Internet.
Amazon's B2C business model is based on the Internet and is very different from the traditional value chain business model. From a single book, and book-related audio-visual, record and other products, the company has gradually expanded its business scope to include multiple fields, including photography, home furnishings, food, sporting goods and so on. Amazon's current target customers who come to buy books can also be new target groups in addition to these.
Amazon's website adopts the form of online sales, facing consumers directly, eliminating the profit retention of middlemen, and naturally the prices are lower than those of goods in traditional stores. Moreover, mature logistics management makes the system more efficient, which naturally reduces costs. Amazon continues to expand its business scope and provide price discounts on its products, which has strongly attracted customers, maintained its customer base, and improved its competitiveness in the same industry.
What are the characteristics of Amazon’s marketing model?
(1) Consumer-centric values. Amazon focuses on consumers and has a consumer-oriented philosophy. It uses its advanced network servers to make it easier and faster for users to search for books. Senior technical R&D personnel carefully analyze the different requirements of customers in every detail and then solve various problems. When consumers are selecting books, the system will display information about products provided by multiple suppliers, making it convenient for them to compare and weigh their products. For some consumers whose goals are unclear, the store provides a free preview function for books, allowing customers to have a more comprehensive understanding of the products, thereby improving the shopping experience and customer satisfaction.
(2) Business philosophy of reducing costs. Amazon is an online e-commerce company whose virtual network economy connects merchants and consumers. Compared with physical stores at the time, early online e-commerce had no rental costs and store maintenance fees, no time and space restrictions, longer transaction times, breaking down barriers to transaction scope, reducing transaction costs, and improving transaction efficiency. As mentioned before, Amazon can offer substantial discounts on its core book business without the involvement of middlemen. Consumers are more sensitive to product prices, so a more favorable price for products of the same quality can attract more consumers, so prices must remain competitive.
(3) Expansion scope across the entire region. In 2001, Amazon officially chose a horizontal alliance cooperation form and cooperated with some music companies, publishing websites, and some physical stores. This unique form of cooperation has enabled Amazon to expand its business categories and market scope, attract more potential consumers, and bring in more operating income.
This is the end of the introduction to Amazon's marketing model. If you want to get more information about Amazon's marketing model, please pay attention to it~