Price gauging: Amazon heightens its appeal with new pricing strategy

12/16/14 by Vanessa Evans

Ask any customer what they think of Amazon as it relates to describing their buying experience, and most will argue that the online entity is a bevy of breathtaking products and pricing that is highly competitive, particularly when you consider the diversity of the items being offered.
Furthermore, Amazon doesn't just compete with the brick and mortar retailers such as Target, Best Buy or Wal Mart but rather has been a major reason why those stores have struggled recently. Amazon not only delivers the same products right to your front door but also does so for less money more often than not.
Even though Amazon seems to be a step ahead of the competition, they're not resting on the laurels. They're actually upping the stakes even more so with a new pricing structure that is destined to create even more buzz behind their brand.

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Amazon is ushering in a name your own price type model, which this holiday season will allow customers to "make an offer" on thousands of products, hoping to catch the eyes of consumers who love the back and forth thrill of shopping online, the same group that loves to believe as though they're finding a deal and want to find the absolute lowest pricing.
Kudos to Amazon for taking what already is a stellar, savvy business model and making the large scale, giant retailers that much more nervous around the busiest shopping time of the year. Amazon already has forced those same stores to rethink just about every aspect of how they do business, so it would only seem appropriate that the online shopping spot is changing the game of how things are bought once again.
Negotiating, one could argue, was the element of Amazon that realistically was missing altogether. The goal behind this move, you'd assume, is to gain market control of the buyers who love online spots like eBay, where you're bidding on items more so than just outright buying them (although eBay still does its "Buy it Now" program). The other aspect of eBay that is intriguing to customers is the "Make an Offer" portion as well.
Amazon, to a degree, has taken a page out of the books of eBay. The difference is they already have a large clientele that loves their low pricing. Adding the thrilling element of making an offer on a product furthers the portfolio of Amazon and how they do business. It also gives sellers on Amazon a chance to communicate with potential buyers, an element of the web site experience that was sorely missing at Amazon.
The real winner in this bold move is the customers who already adore Amazon and how they do business but now can add another level of buying to their experience. Of course, you'd be hard pressed to not tab Amazon as coming out of this deal somehow looking better to the general buying public than they already did beforehand.

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