Marketing Strategy of Amazon

Amazon Ecommerce Company

by Shamsul
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Amazon Marketing Strategy | Marketing Strategy of Amazon


Amazon is a US-based multinational company focusing on ecommerce business, AI (artificial intelligence), digital streaming, and cloud computing. It was founded in 1994, and Jeff Bezos is the company’s founder. It has several subsidiaries. Amazon provides users with a better purchasing solution by offering products and services. It is like one-stop retail where you can get everything from clothes to furniture, home care, tech products, books, everyday essentials, and much more. It is impossible to run such a giant company without an effective marketing strategy. Want to know more about Amazon’s Marketing Strategy? Scroll down to find out the marketing strategies of Amazon.


Important Factors in the Marketing Strategy of Amazon

Segmentation, Targeting, and Positioning | Marketing Strategy of Amazon

In the segmentation strategy, Amazon uses psychographic and demographic factors for marketing its products. This is based on the actual buying behavior of users, interest, and price. Amazon targets each customer individually and tries to make the visitors their long-term and trusted customers. Amazon’s products are perfect for upper-class and middle-class groups who want to get their money’s value. They use differentiated and undifferentiated targeting strategies to secure their customers. They also target those customers who love to shop online or are tech-savvy. It is an excellent opportunity for those people who don’t have enough time to shop from physical outlets. The company has brilliantly positioned itself as a ‘’Go Global Act Local (Glocal)’’ Ecommerce company. You can purchase everything, and they deliver it to your location. They have successfully created a big and positive impact on customers. They want to become the world’s most user-centric company where users can search and grab their favorite items with just one click. The company’s main vision is to provide better products at affordable prices to enhance its shopping experience. They used several taglines in different regions, but its global tagline is ‘’From A to Z’’.


Competitive Advantage | Marketing Strategy of Amazon

Amazon is highly competitive in online retailing due to its subsidiaries and online startups such as Zappos, IMDB, Woot, Audible, Junglee,, and so on. These platforms helped the company to gain its correct value and reach in different regions of the world. Plus, it is a popular name in apparel, DIY, toys, games, furniture, and electronics, which makes it a highly competitive brand in the ecommerce market. They offer these products and services at much lower prices, so every shopper loves to buy essential products from Amazon. They have more than 50 percent repeat buyers under its consumer base. From the US to Europe and other regions, Amazon is a market leader in the online retailing business. With these benefits, the company is entering into different areas.


BCG Matrix | Marketing Strategy of Amazon

Most of the product portfolios of Amazon are cash cows; some are stars and question marks. Amazon prime, movies, and e-books are in the cash cow category because they are the most profitable product portfolios of Amazon. Basically, Amazon was a bookstore initially, and now it deals in every item and product. Kindle, Video on Demand, and Web Services are still in the question mark category of the BCG matrix because these things are now outdated due to the emergence of the latest technologies. Other consumer goods, electronics, and everyday essentials are in the star category of BCG. These items are constantly in demand due to their usage.


Distribution Strategy | Marketing Strategy of Amazon

Every customer wants to get its product in a quick delivery time. Amazon realized this thing, and due to this reason, they created an extensive distribution system. With 55+ fulfillment centers and warehouses, Amazon has several distribution centers, including the ‘’under-the-tent’’ strategy. The quantity of these spaces is increasing daily, giving users a significant competitive advantage. On the other hand, Amazon has established a structured and deep distribution network. This ensures that all the products are available in different remote locations and reduces the delivery cost. It is one of the most significant competitive advantages of Amazon.


Brand Equity

Amazon was just an ebook seller, but now it is one of the leading ecommerce companies in the world. Amazon invests in promotion and advertising to get customers’ attention to increase its brand equity. It is a giant in the ecommerce business, and it is all due to effective services and promotion. They have a sturdy consumer base, and nearly 55 percent of consumers are highly loyal to the brand. According to Forbes, it is one of the most valuable brands in the world.


Competitive Analysis:

The online retailing business is highly competitive. In books and content-related services, Apple is the biggest competitor of Amazon. Apple provides audiobooks, movies, magazines, and books. The Itune store will be the biggest threat to the Amazon store due to the presence of Apple devices such as Macbooks, iPad, iPhones, and so on. In web services, Google is the largest competitor of Amazon. In consumer goods like apparel, electronics, etc, Walmart is the biggest giant in the retail market. Walmart offers innovative services like same-day delivery options, high-quality products, and versatile portfolios. These things can threaten the visibility and brand image of Amazon. On the other hand, a range of retailers in the market, such as Flipkart, Snapdeal, and others, are giving tough competition to Amazon and eating its market share.


Market Analysis:

The international online market is still in the growing phase, and the credit goes to Covid. Amazon should invest in new technology to retain a competitive edge. Although Amazon is doing well in big markets, it can increase its market share and value by investing in specific areas. eBay, Alibaba, Flipkart, and Walmart are some of the major giants in the ecommerce business and the biggest competitors of Amazon.


Customer Analysis | Marketing Strategy of Amazon

Amazon has every type of customer under its consumer base due to its vast range of products and services. Its main customers are upper-class and middle-class people who want to buy reasonably priced high-quality items. If you are a tech-savvy customer, then Amazon is the best place for shopping. It provides ultimate convenience to users to shop for their favorite products without visiting stores physically. This thing is not only to save your time but also to save your money.


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