It’s a mecca of online marketing event and demonstration of true economy of scale.
For non-Prime users, the Amazon Prime Day is an “annual deal event just for Prime members . . . delivering incredible savings on products from small businesses; top brands. Beat the holiday hustle & shop for everyone on your gift list during Prime Day!” (source: Amazon.com).
Amazon Prime membership costs $119 a year. (Basic membership is free but does not get the Prime Day savings). For 2020 the Prime Day is Oct 13 & 14 – delayed from the usual month of July due to the Covid-19 pandemic.
The timing is to beat the traditional Black Friday sales with the pre-holiday shopping while staying at home as a motivation. This event drives other competing merchandisers like Walmart and Targets into their own sales. But there is a difference. A Big difference.
Amazon’s advertised “savings” is based on a pricing strategy of lower profit margin/ higher volume for its suppliers. Higher volume is the key because of Amazon’s logistics prowess to handle its two day delivery for over 100 million prime members worldwide.
Dare I say that no others has squeezed supply chain as efficiently as Amazon can.
What other business strategy can turn a pandemic into profitable event?