Amazon.com – A Detailed Study

Running head: AMAZON.COM – A DETAILED STUDY
Amazon.com – A detailed study
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1AMAZON.COM – A DETAILED STUDY
Chosen company: Amazon.com
Amazon is known as the largest marketplace of e-commerce worldwide. The founder
of the company is Jeff Bezos. It was founded in 5th July, 1994.
Current customers of the company
Amazon.com has various sorts of current customer namely consumers, vendors,
enterprises, and content providers.
According to a research partner regarding the intelligence of the consumer, 45% out
of all the customers of amazon are a registered user of Amazon prime i.e. approximately 40
million of customers around the world. One-day delivery and a better loyalty program is the
benefits which they are getting because of their prime membership (Amazon.com 2019). On
the other hand, roughly 39% out of the total customers of Amazon in U.S. are using amazon
kindle e-readers or tablets which are owned by the company amazon itself, 7% are using
Kindle fire sticks or TV boxes and amazon fire smartphones are used by less than 1%
(Sumner-River 2015).
Demographic and psychographic: Well-known e-commerce company amazon try to use
their segmentation of demographic & psychographic to segment their market. This process is
completely based upon the purchase behaviour of the customers.
Buying behaviour: Customers are buying the product online through the internet. They
directly buy any items or goods or products from a registered seller over the internet.
Price sensitivity: Amazon changes the price of their product frequently almost 2.5 million
times in each day. For this, some customer is getting annoyed whenever they saw the price
drop just after they have purchased it, but at the same time it also helps them to boost their
profit by 25%.

2AMAZON.COM – A DETAILED STUDY
Customer satisfaction: It is generally known for the best customer satisfaction. Currently,
Amazon is the no. 1 rank holder in satisfying their customer.
Customer loyalty: This is the thing that will attract the targeted customer. So that the
particular product is being repurchase by them.
What do the customers buy/use?
Amazon customer literally have so many options to buy. As it sells more than 200
million of products across 35 categories of department in the US alone. Amazon offers quite
a large number of departments namely clothing department, sports and outdoors departments,
office products, jewellery department of amazon, departments of electronics, beauty, baby
products, quite a large number of grocery items and much more. These are all the
departments offered by amazon to all their customers from which they can use or buy.
Expectations of the company in the future
We can assume to see even more growth in Amazon’s future (Gloor et al. 2015).
Amazon’s has a long-term plan that includes “ramping up its shipping services and
continuing to have a predictable delivery system”. Three areas of focus include an
uninterrupted growth momentum, expanding services such as their drone project, and
diversification as they increase video-streaming service capabilities.
Opportunities
 There is a certain rise of the buyers on or over the internet
 In US e-commerce, there is an increase in forecasting.