Tag Archives: Amazon

Amazon Prime Still Keeps Growing

19 Feb

As we know, Amazon dominates the world of online retailing. And it is a very creative firm.  Think about the Kindle, the Kindle Fire, Alexa, and Amazon Prime. [Click here to read more.] Also, it leads online retailers in customer service, including returns, Because Amazon Prime is the basis for a lot of the firm’s success, today’s post deals with Amazon Prime still keeps growing.

Clearly, Amazon itself has been a true marketing innovator. Think of its 2018 Super Bowl Ad for Alexa. Many observers chose it as the best commercial during the game.

And we know that Amazon Prime has been a brilliant program. See Amazon Creates Its Own “Prime” Holiday and Amazon Prime: A Loyalty Program That Really Pays Off .

Thus, it is no wonder that Amazon is the largest online retailer. As well as the number two retailer in overall sales (trailing only Walmart).

 

Amazon Prime Still Keeps Growing

As reported by eMarketer:

“New data from Kantar Consulting estimate that an impressive 45% of households in the US are willing to fork over membership fees to Amazon in exchange for the promise of free two-day shipping on eligible items, along with ancillary benefits like access to Amazon’s library of streamable content. That’s a figure Kantar said is equal to about 56.9 million homes.”

And “According to a report from Consumer Intelligence Research Partners (CIRP) released in October 2017, Amazon Prime members spent an average of almost $1,300 per year on the platform, compared with $700 for nonsubscribers.”

Now, take a look at these two charts developed by eMarketer.

 

The Growth of Amazon Prime

Amazon Primes for More

 

Frequency of Purchases via Amazon Prime

Amazon Primes for More
 

Another Technological Innovation from Amazon

3 May

Not only is Amazon the leader in online retailing overall, it continues to develop innovative technology. Among its already popular innovations are the Kindle, Kindle Fire, TV Fire Stick, and Echo (Alexa).

Due to its getting more heavily involved in apparel retailing, Amazon has just patented a unique new technology-driven, custom-clothing process.

As Nick Wingfield reports for the New York Times:

“This year, Amazon will surpass Macy’s to become the largest seller of apparel in America, by several analysts’ estimates. It is looking at ways to keep expanding, too. Amazon is exploring the possibility of selling custom-fit clothing, tailored to the more precise measurements of customers, and it has considered acquiring clothing manufacturers to further expand its presence in the category.”

“If there are tipping points in retail — moments when shopping behavior swings decisively in one direction — there’s a strong case to be made that apparel is reaching one now, with broad implications for jobs, malls, and shopping districts.”

Also for the New York Times, Wingfield and Kelly Couturier describe Amazon’s customization effort:

“In April [2017], Amazon received an intriguing patent for an ‘on demand’ apparel manufacturing system, which can quickly fill online orders for suits, dresses and other garments. Here’s how it would work. (1) The process starts when customers submit online orders to the retailer for shirts and other articles of clothing, accessories, bedding, curtains, and towels. The patterns, printed onto rolls of fabric or other material, are arranged to reduce scrap.”

“(2) A “cut engine” then carves out the various pattern pieces, while cameras analyze them to make sure they aren’t being distorted in the process. (3) A robotic arm with a mechanical gripper places all the pieces into a tote on a conveyor belt. (4) The conveyor belt delivers the totes to a sewing station, where ‘an attendant and/or automated sewing machine’ stitches the item together. The items are then examined at a quality control station, packed up and shipped to customers.”

 

Click the image for many other figures that visually highlight Amazon’s customization process.

Source: Amazon 

 

Customer Service Means a Good Return Policy

3 Jan

Now that the 2016 holiday shopping season is over (except for spending gift cards), a vital question to consider from both the customer’s and retailer’s perspective is: What kind of return policy best serves my needs? For many consumers, the answer may be: an unlimited time frame to return a purchase. For many retailers, the answer may be: holding down costs as much as possible. In either case, the return policy is a key element of customer service.

These are some return practices disliked by consumers: [Note: Many good retailers do not follow these practices.]

  • An overly short time period to make a return for a full refund.
  • The amount of the refund for a gift item when the gift recipient does not have a receipt.
  • A discounted refund merely for opening the product’s box.
  • The time to process a refund for a return.
  • Items excluded from refunds, such as computer software.
  • The shipping fee to return a purchase made online.

 
Two of the acknowledged leaders are Amazon, whose return policy is easy to use and consumer friendly, and L.L. Bean, whose return policy has received various honors and awards.

As a prelude to a YouTube video about returns at L.L. Bean, Business Insider’s Sam Rega recently stated: Here’s what makes L.L.Bean’s ‘100% satisfaction guarantee’ the best return policy of any retailer.”
 

 

More Gamesmanship on Retail Prices — Even Online

14 Mar

As we wrote a short time ago, companies are not always transparent or honest when they say an item is ‘on sale’ when it really is not: “Unfortunately, many retailers misuse the term ‘sale.’ And shoppers are often persuaded that a product is on sale even when it isn’t.” According to Evans and Berman’s Marketing in the 21st Century: Price advertising guidelines have been set by the FTC and trade associations such as the Better Business Bureau. The FTC’s guidelines set standards of permissible conduct in these categories.”

STILL not convinced that all ‘sales’ really are sales? 

Then, consider these observations from David Streitfeld, writing for the NY Times:

“The perception of a bargain is fostered by online retailers’ use of something variously labeled list price, suggested price, reference price, or manufacturer’s suggested retail price. Whatever its name, the implication is that people are paying much more somewhere else. But with many products online, you could not pay the list price even if you wanted to. That is because hardly anyone is actually charging it. It is a sales tactic that is drawing legal scrutiny, as well as prompting questions about the integrity of E-commerce. If everyone is getting a deal, is anyone really getting a deal?”

“Here is one recent example of how retailers use list prices to motivate online buyers: Le Creuset’s iron-handle skillet, 11 ¾ inches wide and cherry in color. Amazon said that it would knock $60 off the $260 list price to sell the skillet for $200. Sounds like a bargain, the sort of deal that has helped propel Amazon to over $100 billion in annual revenue. Check around, though. The suggested price for the skillet at Williams-Sonoma.com is $285, but customers can buy it for $200. At AllModern.com, the list price is $250 but its sale price is $200. AtCutleryandMore.com, the list price is $285 and the sale price is $200. An additional 15 or so online retailers charge $200. On Le Creuset’s own site, it sells the pan for $200.”

 

Click the image to read more from the NYT.

A Le Creuset 11¾-inch skillet sold for $200 at more than a dozen Web sites, but the list prices they quoted varied. Photo Credit :Gretchen Ertl for The New York Times

 

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