Amazon and Walmart Set New Benchmarks In Retail
While Walmart, the retail chain with 11,527 stores is promising to match the competitor’s price if the shopper exhibits an advertisement of the same product, ecommerce giant, Amazon is betting big on price drops for its merchandise, purchased recently by shoppers.
If the pricing of a product is slashed within 7 days of purchase, Amazon will refund the difference to the consumer. As per experts in the retail segment, the third party refund tracking applications have influenced Amazon’s pricing algorithm concluding in lowered margins retrospectively.
For competitors of Amazon, it will be a tough road ahead as Amazon has already build a huge customer base, owing to its one among the lowest pricing for products. The company has also managed to transform its business as one among the most sought after web properties, giving a tough competition even to google in this regard.
The growth story of Amazon in the search domain has also been well recorded, comprising of 44 per cent of all direct searches for products, over search engines at 34 per cent and other merchants at 21 per cent.
With the billions spent on ads on properties like Google, Facebook et al., Amazon’s “control” in this space equates to billions in savings on advertising and a massive competitive advantage.
With Amazon’s collateral services including Prime, Echo and sophisticated logistics, they definitely have an upper hand over competitors, with only Walmart, with its sheer physical presence, size and logistics coming as a rival to the company.
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