Amazon Shipping System Case Study

Amazon’s new shipping system is certainly an interesting idea. On one hand, I can see how this would be beneficial and on the other, I can see how it would not be. Certainly, if Amazon shipped products right to your door, it would increase spending. With more consumers buying, then the cost of gifting or returning would be greatly reduced. One aspect of their new system I thought would be very helpful would be to ship products to a warehouse near you and sell the products at a discounted rate. I know I always love a bargain and would probably be checking to see what was in the nearby warehouse. Moreover, this new system would definitely increase their sales. For instance, say you were debating on getting a product for a while, and all of a sudden you see a package at your doorstep. First, getting a package is very exciting; two, you are really excited its the item you were waiting for the longest time. Once the product has landed into the consumer's hand, they are more likely to consent to the purchase. I

Since Amazon would be shipping all my household items, I would be spending less time in stores, which means companies would see a loss of revenue. I know Amazon cut down on my need to run errands, I would be spending much less at Target. I often end up sending about $50 at Target even if I just went in there to buy face wash.

Overall, there are pros and cons to Amazon’s new strategy. I think if they can fine-tune their system and allow consumers to regulate what is being sent to them, then this system would work great. The company would have to be very transparent and let consumers know what their new system is before launching the “automatic shipment”. If consumers are not aware of this new system, I can see how consumers would be angered and how they could lose business. In general, I could see myself liking Amazon’s “automatic shipment”