Impact of Amazon's Online Marketing Strategy on Conventional Retail Stores

This article discusses the impact of Amazon's online marketing strategy on conventional retail stores, advantages of online firms over brick and mortar stores, advantages of local retail stores over online shopping, and how Amazon is providing managed logistics services to other firms.

Running head: SERVICES OF AMAZON
Services of Amazon
Name of the student
Name of the University
Author note

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Q.1 Describe how Amazon’s online marketing strategy is impacting conventional retail
stores. What specific advantages do Amazon and other online firms have over brick and
mortar department stores? What advantages do local retail stores have over online
shopping?
Answer 1)
The marketing strategies of Amazon are having a tremendous amount of impact on
that of conventional retail stores. The e-commerce giant like that of Amazon makes use of
demographic segmentation in order to divide the markets. The segmentation of Amazon is on
the basis of actual purchase behaviour of that of the customers that has an advantage over that
of the conventional retail stores (Heng et al., 2018) The conventional retail stores are
suffering great losses owing to the successful online marketing strategy of Amazon.
The marketing strategies of Amazon are simple and effective that applies 4 P’s in
relation to marketing. Amazon has got unlimited products and their prices are lower as
compared to that of the retail stores. The customers can shop very conveniently from the
comfort of their home. They can select a product and buy it within a very short span of time.
The local retailers enjoy some advantages as the customers can get the products on
immediate basis. The customers does not have to pay any kind of shipping cost which is an
advantage that the local retail stores enjoy over that of online shopping. In the event of
buying the products from the local retail store the customers can involve themselves in
discussion with that of the product expert who is on the site (Omar, 2018). They can thus help
in supporting the local merchants like that of the non-chain stores that depends on that of the
local traffic.
Q.2 How are brick and mortar retail stores responding to the online shopping
competitors? Provide an example.

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Answer 2)
With the advent of mobile technology, listening to what the customers are saying has
become a necessity in relation to the retailers. The companies that have brick-and-mortar
store are experimenting and they have also started to offer different kinds of products in the
online mode. They are adding new product categories that can draw the customers towards
these stores. The products offered on website should be different from that of the store
inventory. This can help in preventing self-cannibalization in between the two channels
(Johansson & Kask, 2017). Brick and Mortar can mix the best aspects of that of in-store
along with that of online shopping. They can optimize the show rooms for serving
entertainment along with pleasure. The crucial factor can prove to be customer service. The
shoppers in the stores can get the services of an attentive clerk with whom they would be able
to connect very easily. They can contact the associate with the help of chat, telephone and e-
mail (Chiu et al., 2014
Costco has further added different categories like that related to apparel and health.
The retailer has managed to improve the shipment timings and it has three depots instead of
that of one. Costco operates the e-commerce operation in that of three international
geographies- Canada, UK and that of Mexico. The company is entering new market like that
of Japan, Australia and that of Korea.
Q.3 Can an “even playing field” be achieved for both the local department store and an
online merchant offering the same products? Explain and support your answer.
Answer 3)
There cannot be an even playing field for that of the local department store and that of
the online merchant. According to me, the online merchants who are offering the same
products as that of the department store will be able to capture the market on account of the

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various convenience factors that are associated with it. This is the era of fragile economy and
the shoppers can easily find deals in the online mode. They can also take the advantage of
that of free shipping that can eliminate the hassle that is associated with buying from that of a
retail store (Pantano & Viassone, 2015). The modern shopping malls are located in the urban
areas of that of the country and the people are overworked in these regions. They do not get
sufficient amount of time to go to the retail store to buy different items. Online shopping
provides one with the facility of buying things from the comfort of home with the help of
their smart phones. Weak economy along with that of customer preference in relation to
buying things in the online mode will lead to the decline of the local department stores.
Q.4) How is Amazon looking beyond retail shopping to providing managed logistics
services to other firms?
Answer 4)
Amazon is looking for new ways that can expand its business and ensure its
sustainability within the market. Amazon is creating new devices that can act as delivery
vehicles for the different firms. Logistics services can be provided by the company with the
help of the advanced infrastructure that it possess. The different products will be transported
to the houses with the help of unique services of that of Amazon. The superior technology
used by amazon like that of map locating software and the layout of their ware houses can
help in providing superior customer service (Turban et al., 2015 The ware houses of Amazon
have been designed in such a manner that many kinds of products can be stacked inside it.
This can greatly facilitate Amazon in providing logistics services to that of the other firms.
Automation along with communication technology can be made use of by the company for
providing the logistic services. They can work with different suppliers by the help of
forecasting software in order to communicate in an effective manner the delivery dates.

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Q.5 “Plans fail for the lack of counsel, but with many advisers they succeed” (Prov.
15:22 NIV). Explain what this means to a follower of Christ in their business practices.
Answer 5)
The business owners are often pulled in different kinds of directions. The business
owners have to make crucial financial decisions in relation to their everyday practice. The
business owners should have advisors who can provide valuable insight in relation to their
business. They can provide guidelines in relation to the financial matters regarding which the
business owners are not familiar with. The business owners should have a true banker at their
service who can help in suggesting financial ideas. The professional advisors can help in
reviewing the current business situation (Lu & Liu, 2015). They can help regarding advising
on different actions that should be taken in order to reduce further damage. They can help in
the determination of suitable options that can help in solving the problem. They can assist the
business and inform the people involved in the business about the positive along with the
negative outcomes. The advisors should be trustworthy as one has to discuss regarding the
business performance with them and reveal data that is confidential.

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References:
Chiu, C. M., Wang, E. T., Fang, Y. H., & Huang, H. Y. (2014). Understanding customers'
repeat purchase intentions in B2C e‐commerce: the roles of utilitarian value, hedonic
value and perceived risk. Information Systems Journal, 24(1), 85-114.
Heng, Y., Gao, Z., Jiang, Y., & Chen, X. (2018). Exploring hidden factors behind online food
shopping from Amazon reviews: A topic mining approach. Journal of Retailing and
Consumer Services, 42, 161-168.
Johansson, T., & Kask, J. (2017). Configurations of business strategy and marketing channels
for e-commerce and traditional retail formats: A Qualitative Comparison Analysis
(QCA) in sporting goods retailing. Journal of Retailing and Consumer Services, 34,
326-333.
Lu, Q., & Liu, N. (2015). Effects of e-commerce channel entry in a two-echelon supply
chain: A comparative analysis of single-and dual-channel distribution
systems. International Journal of Production Economics, 165, 100-111.
Omar, P. D. O. E. (2018). UK CONSUMERS'ADOPTION OF THE INTERNET FOR
GROCERY SHOPPING. AU Journal of Management, 3(1), 11-18.
Pantano, E., & Viassone, M. (2015). Engaging consumers on new integrated multichannel
retail settings: Challenges for retailers. Journal of Retailing and Consumer
Services, 25, 106-114.
Turban, E., King, D., Lee, J. K., Liang, T. P., & Turban, D. C. (2015). Electronic commerce:
A managerial and social networks perspective. Springer.

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Reply to student 1
Jonathan, your post was nice to read and I completely agree with you regarding the
fact that there are some advantages that the conventional retail stores enjoy over that of
online marketing like looking at the item at first hand before purchasing it. Jonathan you have
aptly pointed out regarding the online shipping of Walmart that makes it competitive in the
industry. You have rightly suggested that the other stores are offering easy return policy and
returning of an online product can be more tedious as compared to that of traditional stores. I
would like to add here that the online retailers of the present age are also offering easy return
policy in order to attract the buyers. They do not have to go through any hassles and simply a
phone call will be enough for facilitating the return of the items. I agree with you on the fact
that the stores coming up with new ideas can be of great help for both the traditional retail
stores along with that of the online retailers. You is right about the fact that if the shipping
time is around 5 days then in such a case the customer would like to pick the article from the
store. Amazon helps in saving the receipts and they generate report for that of business
accounting purpose. Jonathan, your saying is right that the business owners often become
proud and they like to do things on their own is absolutely right. I would like to add here that
the business owner should be cautious when looking for counsel.
Reply to student 2
Nick it felt great reading your post and I agree with you on different aspects. I think
that you are absolutely right when you have said that the success of Amazon has greatly
inspired the other companies. Nick you have very rightly brought out the fact that Amazon
will continue to be the leading competition and this will have an impact on that of other
companies in a negative manner. The broad range pertaining to Amazon have enabled it to
spread in that of the production world and other business would not be able to break free of

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the effect of Amazon. I also agree with you on the fact that revamping of the websites can
help in meeting the specifications of that of online shopping competitor. You have correctly
suggested that providing different kinds of facilities like free shipping and that of quick
shipping can be of great help for the brick and mortar companies and they will thus be able to
grow in the competitive environment. Nick you are right when you suggest that the local
department store would never be able to match with that of the online merchants. I would
however like to add here that the local department stores offered the facilities of that of online
retailers would be able to meet the challenge of that of online retailer. Nick you are right
when saying that teamwork can help people in bringing about unique success and the
knowledge that is got from everyone will prove to be difficult to match. I think your saying is
right that in the same way that iron can sharpen iron in the similar manner one man can
sharpen the other person.