Essay on Amazon.com Outshines Global Retail Market: Safe, Secure, & Professional Shopping

Amazon.com operates internationally through the Online Retail Industry. Amazon outperforms many of the ordinary retail marketplaces. Amazon is an online retail shop specialized on electronics, fashion, Jewries, utensils, electronics, books, and other reading materials, and groceries. Amazon's competitive advantage positions it in the perfect spot for future growth, among them include: Safe and secure system; Wide variety of products; professional and efficient customer services; Warranty on the products; affordability of the products; authenticity of the products; quality and value of the products; 30 day return policy; warehousing and distribution system; and free shipping (Seifert & Markoff, 2019). These competitive advantages are rare in many of the ordinary physical retail shops. Despite the reputation that Amazon has built in the online retail industry, still, there are stiff competitors such as Alibaba, Walmart, Otto, JD, Priceline, eBay, among many more. As the competition gets stiff, Amazon diversifies into other products such as groceries to expand their profit margin (Seifert & Markoff, 2019).

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Amazon step to diversify into the grocery was a smart idea. The venture can be prosperous if proper investment measures are considered. Previously, Amazon groceries had excellent performance; Haddon (2019) shows that as at the last four months of 2017, AmazonFresh recorded an increase of sale of 35% to 135 million. While the research conducted by Wells, (2018) shows that Amazon's groceries sales were expected to grow up by 15% this year to make up a 6.3% share of total groceries dollars. While for the groceries that give both store pickups and deliver, anticipates showing higher values ranging between 25% and 30% (Haddon, 2019). However, Amazon has to be ready for challenges such as high perishability of the groceries, cities with heavy traffic that will delay delivery, and dealing with clients who want to return products after pre-order and yet they are perishable (Haddon, 2019). The weakness of such a venture is that, it will serve people who are close to the market, poor terrain and weather can affect the delivery of such urgent orders, most of the people will prefer to purchase from the stores near to their residence, and people are very speculative on consumable products from online (Haddon ,2019).

As the company has established a solid reputation in the market that it operates, people have gained confidence with their product and service; this will serve as an advantage since they have potential clients to purchase groceries from its website. The market has the potential to grow, as discussed by Brick Meets Click research; Amazon has an average income of $45 for every online grocery order related to $116 for supermarkets (Wells, 2018). Amazon streams supermarkets since most of its orders depend on the on ship-to-home fulfillment, restricting what consumers purchase. As was to endorse its sales, the company can introduced introduction promotion and discounts to introduce more customers, and offer a different customer care department that will respond quickly to the groceries to avoid delays that can lead to losses of disappointing the client, the merchandiser and leaving the product to go stale without being sold. Also with more online platforms, such as Prime Pantry, AmazonFresh, Prime Now, and Amazon Go, gives the company more exposure to the public and different options that they can place, order, make payment and have their orders delivered (Seifert & Markoff, 2019).

References

Haddon, H. (2019). Amazon's Grocery Sales Increased After It Devoured Whole Foods. Retrieved from https://www.wsj.com/articles/amazons-grocery-sales-gained-weight-after-it-devoured-whole-foods-1515934801

Seifert, R., & Markoff, R. (2019). Will Amazon do to the grocery industry what it did to e-commerce?. Retrieved from https://theconversation.com/will-amazon-do-to-the-grocery-industry-what-it-did-to-ecommerce-96874

Wells, J. (2018). Amazon is struggling to make online grocery profitable. Retrieved from https://www.grocerydive.com/news/amazon-is-struggling-to-make-online-grocery-profitable/544883/