It’s no question that Amazon’s ever-growing influence has changed the way consumers shop. That coupled with the number of consumers who decide to skip the store lines and order online, marketers are increasing their spending on Amazon advertising as they seek to sell their products where the consumers are looking. Their spending is going towards products or the brand becoming sponsored by Amazon.
Survey’s for this year are predicting that this seasons shoppers will use Amazon 3 to 1 over Google for their holiday shopping needs. To increase their revenue during the holiday season, Amazon announced they’re offering free shipping on ALL orders that are to arrive during the holiday season. Competitors like Walmart launching their own 2 day shipping offers that couple with the always low prices and Best Buy is offering online price matching to bring customers in to their stores. Amazon is taking steps to grow their number of shoppers, to increase their number of prime members and to increase revenue during the holiday retail battle.
I think this promotion will prove to be beneficial in customer growth, however I do not think it will ultimately increase profit for the company as their shipping expense will increase significantly. It could definitely prove to be beneficial for customer acquisition purposes though. With free shipping, I think Amazon will see a large increase in sales and it will certainly attract customers to use Amazon as a one stop shop where they browse for potential gifts on their site. Though this will be great for Amazon, this could have large negative effect on brick and mortar stores.