Amazon trading benefits
Introduction
Amazon is a global online platform that assists firms in the marketing of their products. Trading as a third party or primary marketer at amazon has got advantages; this has been experienced by several companies like pharm-packs, Veeva systems, Oppo, Jonnes CDs, Ring, Zappos, wholefood groceries and others. These companies started at a low level of about $15 million growth annually but have grown at amazon in their interaction with customers; the following has been achieved.
Findings
The casting of vast rage market. Features of the amazon platform like the ‘everything stores,’ millions of customers are convinced. Oppo has been able to maintain its profit margin of $ 465 million as an annual revenue mean. The platform grants customer-based interactions that allow the traders to have the customers experience on taste and choice. The feature of ‘fulfillment’ on the amazon platform gives the traders a chance to have their inventory and delivery done on their behalf.
Reduction of marketing costs. Having amazon as a trading partner, the indulgent to the market is direct. There are hectic procedures to start up and own a new market platform Veeva systems had made trials to start one, but the cost was unbearable. The decision on where to sell online isn’t easy, but amazon simplifies the ask. The reduced expenses, example, in the Pharmpacks’ case, have enabled the firm to grow with a margin of $2.23 billion. The CEO exclaims that “we get wholesale profit from the shipping and risk margins, services offered by Amazon”.
According to 2015 Inc. publications, over 500 lists of America’s fastest-growing companies have been growing by ten times or more. 45-60% of this success is related to amazon platforms. Pharmpacks in their vinegar dealing notched a $31.5 million gain in the year 2014 that led to a growth rate of 3035%. By the end of 2015, their gain was over $70 million. Hall, A says that this gave the company morale to targeting $ 140 million to $160 million in the following year. By the end of the year 2018, the firm had managed a revenue of $206.1 million primarily from amazon trading.
Whole foods, a grocery company, had financial issues before acquisition by amazon. From studies by Peterson, P. E, since the deal, wholefood has experienced $10 billion revenue from amazon primarily marketing, the grocer was also ranked 176 in the 2017 fortune 500 lists. From the firm’s physical stores, $4.5 billion has been gained
According to Marshak, R, another company that has benefited from amazon marketing is the Veeva systems. The revenue for this firm has gradually increased from $47 million in the year 2014, $106 by 2015 up to $371 million in the year2018.reseach by Hall. A indicates that initially, the systems had challenges of marketing due to a lack of platforms. The success of more than 45% has been achieved while in amazon.
Conclusions
Trading with amazon is a road to market and financial success. Being a private sports and nutrition company, the firm in this case study has the best to drain from amazon as a third-party trader. As seen from the viewed companies, the financial transformation is within a short time.