Question

Argumentative reasoning on why Amazon should expand into Amazon-branded retail stores as a means to cost-effectively grow its business in North America

Answer 1

Amazon is the most outstanding hub in e-commerce. Offering the wide variety of product and from all sectors that to at the reasonable prices has built the strong image for amazon.

By proving services and goods on the basis of Demands and needs of customers have created the positive image of Amazon.

Recently for Expansion Amazon launched Amazon- Branded Retail Stores in North America

They tried this concept with clothing merchandise or books or any retail business i.e. to provide customer with their favorite brands. The customers has to browse and in the browse section there is quick link . The process involves select the brand or search the brand name from Amazon Clothing Store. Thereafter the icon is developed at the top corner of Amazon along with the brand URL .By clicking on the link one have variety in the brands and similar brands.

It is cost effective as

1. The range of prices of branded items are mostly high specific purchase of branded item will gain additional sale and profit to the Amazon.
2. The customers need are satisfied now the customers doesn't have to look on each and every section the direct link to brand store will help the customers to gain satisfaction.
3. Providing header and footer in the each web page helped the customer to know about the series of product in line.
4. The demand being satisfied retain the customer therefore the competition is reduced which will help Amazon to be the best in the league.
5. Every 18 out of 20 customers offers and prefer Amazon either to purchase or to compare. Attraction of consumer towards Amazon has helped to launch innovation in their business model and by offering 11 million products and reduce the cost per item of the company.
6. By proving new business the chance to showcase their talent will be additional benefit for Amazon as already they are in profit by adding this new branded retail store will give additional sale as well as new business tie up relation.
7. By launching this stores the annual subscription in Amazon have increased and rick crowd is attracted as well.
8. Brands in books have given new chance to authors to explore withing minimum monthly membership

CONCLUSION : By adding this new expansion has increased the sales in amazon and also the monthly subscription have also increased.If we look in the wider picture Amazon branded Store is

1. Adding expansion value and cost effective to Amazon by increasing sales.
2. Self service and entry of new members with minimum subscription as additional benefit.
3. Customers satisfaction and crowdsourcing is increased.
4. Overall cost is bifurcated and thereby reduced.

Hence we can summarize that taking this move has increased the sales and membership to the Amazon thereby adding profit and revenue to the financials of the company . Moreover both the customer and the vendor is satisfied by this transition.