Friday, October 16, 2009

Amazon ups the eCommerce stakes

In yet another aggressive move on its competition in the "sell everything we possibly can online" market (BTW: who actually is in this market right now?) Amazon has announced it now has no minimum spend to qualify for its Super Saver Delivery option.
This basic delivery choice on (usually advertised on the site as '3 - 5 working days') is incredibly popular and in my experience nearly-always gets to me in only a couple of days.
Obviously someone at Amazon has done their maths and worked out that they will gain additional revenue without adding too much to their costs. This benefit should come either from incremental basket value or up-selling shoppers to premium rate delivery options.
This could be a blatant move to steal market share at a loss, but this activity could harm Amazon in the longer term if it subsequently raised the minimum spend back to £5 or higher.

Here's hoping the people with the spreadsheets have their assumptions correct and visitors won't make more frequent but lower value purchases...

in reference to: offers free delivery on all items — Internet Retailing (view on Google Sidewiki)
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