Online Shopping As A Whole Has Impacted Consumer Behaviors

1488 WordsApr 21, 20176 Pages
Online shopping as a whole has impacted consumer behaviors and with Amazon being one of the biggest retailers it has had a significant impact on its consumers’ behavior. The days of having no option but to visit a physical location to conduct shopping are practically forgotten now. What started out as just an online bookstore in 1994 is now a contender for the number one retailer spot currently held by Walmart. Typically, the limited space available in any physical store selling books or CDs, and the fact that browsing physical catalogues took time, meant that a digital store for books and CDs would overcome the two major challenges with shopping for books and CDs at a physical store. Being a digital retailer allowed Amazon to have…show more content…
What made Amazon stand out from the rest and therefore allow it to survive once the bubble burst was that it was focused on long term market leadership to create shareholder value compared to short-term profitability which was the goal of most other companies. Aforementioned is the idea that Amazon carved out a niche for itself. However, in hindsight, they were simply the first in a very large market that other enterprises had failed to identify and capitalize on. Thanks to the volume of sales that Amazon enjoys, it is able to offer discounts ranging from 10 to 30% off the prices of books, this means that other websites have to do better than this to be able to compete with Amazon pricing. Comparing the prices of books and CDs on Amazon to those on other websites is a tedious process that most people are willing to forgo and stick with just Amazon instead (Lewis, 2005). Anyone willing to go through this would have to be under serious financial constraints and in that case, they become vulnerable to websites that claim to offer original books and CDs that may actually be pirated. Since expanding its catalogue to include more than books, there’s little that one cannot find on Amazon as far as frequent and regular purchases go. Notable exceptions are liquor and tobacco, which cannot be bought on the website. This means that the average Amazon consumer in America today has little reason to consider other online merchants, most of who also don’t sell
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