Amazon Marketing

Amazon is an incredible platform on all fronts. With an massive reach (to the tune of 47%
market share in the US and UK and 31% market share in Germany), it’s an incredible outlet to
showcase products, earn more sales, and build brand awareness.

Amazon marketing strategy

Amazon uses the high runner strategy to market its products. This strategy uses data to uncover
which products are in the highest demand in every category. Amazon's pricing algorithm then
prices those products competitively and bids heavily on advertisements to pull people to these
products. Once a consumer is on the Amazon site, they’re likely to buy accessory products at full
price.  

How to target Amazon sellers on Facebook

Search Facebook groups for Amazon Sellers and see if there are any interesting groups to join.
You can even try localization efforts and look for Amazon seller groups in your area.

Note that many of these groups are intended for Sellers to form a community; as a result, many
don’t tolerate any “selling” within the group. Regardless, connecting with others in this
community is a great way to get in touch with potential customers and learn more about your
target market. 

You can use this information to run better targeted campaigns on Facebook. You can discover
who big names are in the Amazon Seller community, then run ads based on the audiences that
like that public figure’s Facebook page.  

You could even reach out to the public figure and see if they would be interested in marketing
your product directly to their audience. 

What is Amazon’s marketing service?

Amazon Marketing Service was Amazon’s first portal for product advertising. It has since been
retired and replaced with Amazon Advertising. This new portal is a simplified way for Sellers to
control all their media, marketing, and advertising under one unified umbrella. 

 Amazon Advertising is where you’ll find all advertising options available to you. There are
currently three different types of paid ads that you can buy. 
Below is a great 3-minute video about Amazon Marketing Service and how it works.

How Amazon uses big data to boost its performance

Before getting into the logistics of Amazon’s advertising program, it’s important to understand
what makes the platform different from other marketplaces: data. 

Consumer data may be Amazon’s most valuable asset. And Amazon has a lot of it. As Neel
Mehta, Parth Detroja, and Aditya Agashe wrote for Business Insider,

[Amazon has] 1.5 billion items listed for sale and 200 million users. Amazon has one billion gigabytes of
data on their items and users. If you put all that data on 500-gigabyte hard drives and stacked them up, the
pile of hard drives would be over eight times as tall as Mount Everest. Now that's some big data.  
 
Amazon’s goal is to learn as much about consumer shopping habits to deliver better experiences to
customers. Amazon knows which products are popular, when they purchase it, how much they pay, and
more. 
 
Amazon uses data to boost its performance through three main measures.
 
First and foremost, it uses data to adjust prices and capture more margin via a high-runner strategy. 
 
Second, Amazon uses consumer data to power its advertising business. In 2018, Amazon made $10
billion USD in revenue from advertising alone. This made Amazon the third-largest advertising business
that year. For comparison, Facebook made $16 billion on advertising in 2018 and Google sold $135
billion worth of ad space. 
 
This is a powerful number, and it makes Amazon nearly impossible to ignore as an advertising space in
its operating markets. 
 

How does Amazon promote its products?

Amazon may also use this consumer data to develop its own brands. 
 
The AmazonBasics label has been around since 2012, but in the last few years the label has exploded.
Rachel Kraus reported in an October 2019 Mashable article: 
 
Amazon launched AmazonBasics, a line of everyday products like batteries and cookware, in 2009. It has
been growing its private labels ever since, constructing more than 100 fashion, home, and electronics
brands in the last 10 years. In 2017, private label brands accounted for $450 million in sales. And in July
2018, analysts estimated that private labels would account for $7.5 billion in sales in 2018. (Amazon has
not yet released its 2018 annual report.) Amazon sells its private label products in its Marketplace, right
alongside nearly identical products from independent sellers.
Amazon advertising on my website

Marketing your Amazon products doesn’t begin and end on the Amazon platform. You can also
connect with Influencers to get your products in front of engaged audiences via the Amazon
Affiliate Program. 

In the Affiliate program, Influencers generate unique links to your Amazon product listings.
They can then place these links across all their channels, whether that’s a blog, a Youtube
channel, or even Pinterest. 

While Influencers can pick and choose which items they want to advertise on their channels, it
may be worth it to reach out to them directly and offer a partnership: you can provide free
product, and the Influencer can promote your products with an affiliate link. 

Influencers can earn up to 10% of the profits when someone purchases through their Amazon
Affiliate link. If the Influencer has a large enough audience, this can easily be a great source of
(recurring) revenue for your Amazon products. 

Amazon a+ page examples

Amazon has a premium program called A+ Content that helps you build product pages that are
inspiring, informative, and conversion-focused. The program is only available to professional
sellers who have been approved as brand owners. 

A+ Content lets you put more multimedia content on your page through the form of several
different types of widgets. You can add rich text, additional images, videos, and more through
A+ Content. 

TheraBreath is a great example of a stellar A+ Amazon page. It includes the standard of four
images, a video, and five compelling bullet points. If you scroll further down the page though,
you’ll see the A+ Content, pictured below. It includes a table comparing different products to
each other, a note about the creator, and some unique graphics that reinforce the benefits of the
product. 
Another nifty feature is that when you click on one of the ASIN products featured in the table,
you’ll be automatically redirected to that specific product page.  

If your product category is especially competitive, A+ Content might be a worthy investment. It

can help make your product stand out and can improve sales conversions and increase your
visibility in Amazon's search algorithm. 

What is Amazon DSP?

Amazon Demand Side Platform (DSP) is a platform that enables you to programatically buy
display and video ads. 

Launched as a competitor to Google Display Ads, DSP allows you to create advertisements
quickly and drive traffic directly to an Amazon listing. Where Google ads send traffic to a
website, DSP ads link directly to Amazon. Sellers can place these ads on Amazon, but also on
third-party websites. 

Amazon launched this service to help bring more shoppers directly to the site. As the number of
Sellers exploded on Amazon, the company needed a way for Sellers to pull in more shoppers as
well. 

There are four different types of ads that Sellers can purchase through Amazon DSP:

1. Desktop ads: display on a user’s desktop browser

2. Mobile banners: display in a shopper’s mobile browser
3. Mobile interstitial ads: display across mobile and desktop browsers
4. In-stream video ads: run video ads on Amazon’s websites, mobile apps, and the Kindle
Fire wake screen

Why use Amazon DSP

The biggest benefit of Amazon DSP is to get access to Amazon’s exclusive market data. 

 As the world’s largest e-commerce platform, Amazon has incredible amounts of data on
consumers.Buying into the DSP platform gives you access to this consumer data and lets you
create tailor-made advertisements that match different audiences and different buying intentions. 
You can not only learn more about the people who are already buying your products, but also
learn more about new audiences whose interests overlap with your existing audience. If you give
Amazon a sample of your existing audience, it can automatically generate a “lookalike” audience
that is similar to yours.  

Amazon DSP also makes it easy to reach these people. The program automatically generates
advertisements based on your audience and its insights and will automatically test the
performance of these ads. 

Amazon Marketing Mix

Product Element in Amazon Marketing Mix
Amazon products can be divided into the following four categories:

1. Amazon websites that enable hundreds of millions of products to be sold by Amazon and
by third parties across dozens of product categories. About 58% of all items sold in
Amazon websites in 2018 was from third-party sellers. There are more than 100 million
Paid Prime members.
2. Electronic devices such as Kindle e-readers, Fire tablets, Fire TVs, and Echo. In 2018,
customers bought tens of millions of Echo devices, and Echo Dot and Fire TV Stick with
Alexa. Since the first generation of Echo, customers have bought more than 100 million
Alexa-enabled devices. In 2018, the company improved ability of Alexa to understand
requests and answer questions by more than 20%.
3. Media content. An extensive range of products and services, including cloud-based
services that can be used to produce content.
4. Amazon Web Services (AWS). This segment offers a wide range of global compute,
storage, database, and other service offerings. AWS serves developers and enterprises of
all sizes, including start-ups, government agencies, and academic institutions.

Place Element in Amazon Marketing Mix

Traditionally, Amazon didn’t have physical stores and the company relied on online sales
channel due to e-commerce nature of its business operations. Starting from 2015, the online retail
giant has been concentrating in physical retail “during which time it’s opened half-dozen
bookstores that double as gadget emporia, a score of campus bookstores that don’t sell books and
a convenience store without cashiers.”

Moreover, Amazon also has an alternative store format that operates in a cost-effective manner.
“Students order textbooks and dorm furnishings online and come to these stores to pick them up.
The centralized pickup location reduces shipping expenses. The company is also testing a
grocery pickup service at two locations in Seattle. Once it launches, Prime members will be able
to order groceries online and visit one of these stores for pickup, skipping the aisles.” To
summarise, Amazon has an omnichannel sales strategy and customers access its offerings
through its websites, mobile apps, Alexa, and physically visiting Amazon stores.

 
Price Element in Amazon Marketing Mix
Amazon’s business is highly seasonal. The company generated 32%, 34%, and 31% of its annual
revenue during the fourth quarter of 2016, 2017, and 2018 respectively.. This pattern of revenue
generation has certain implications on Amazon pricing strategy. Amazon pricing strategy can be
generally described as cost leadership; nevertheless, the largest internet retailer in the world also
applies alternative pricing strategies in certain segments.

Cost leadership is placed at the core of Amazon pricing strategy. Analysts note that “Amazon’s
strategy is to frequently lower prices until they beat competitors–for all products”. Famously, the
online retail giant changed the price of Bible more than 100 times during the last five years.

At the same time, Amazon uses premium pricing for its products and services, where the
company possesses solid market share and competitive advantage. For example, publishers with
Kindle Direct Publishing are offered 70% royalty option and make their books available in the
Kindle Store[9]

Additional range of pricing strategies used by Amazon sparingly include penetration pricing,
price skimming, psychological pricing, product line pricing, promotional pricing and
geographical pricing strategies. The e-commerce giant earns fixed fees, a percentage of sales,
per-unit activity fees, interest, or some combination of these according to its seller programs.

Promotion Element in Amazon Marketing Mix

This component of the marketing mix involves the strategies and tactics that a company uses to
communicate with its target market. Amazon.com Inc. aims to persuade its customers to visit its
websites and pay for its online services. The following strategies and tactics are used in such
promotional mix, arranged according to importance in the company’s e-commerce business:

1. Advertising (most important)

2. Sales promotions
3. Public relations
4. Direct marketing

Advertising functions as the primary means for Amazon to communicate with its target market.
For example, the company has an affiliate program for website owners or online publishers to
earn revenues by displaying advertisements and corresponding links to products sold on the
Amazon.com website. This strategy widens the company’s market reach. Also, Amazon.com
Inc. applies sales promotion as a secondary strategy to attract customers and persuade them to
purchase goods and services on the website. For example, the company occasionally uses
discounts and special offers to generate more sales. On the other hand, the firm strengthens its
brand image through public relations programs, such as Amazon Smile, which donates a
percentage of sales to charitable organizations. These programs enhance consumer perception
about the corporation Moreover, in using direct marketing, the company directly communicates
with businesses to offer its online services, such as publishing and digital content distribution. In
this component of Amazon.com Inc.’s marketing mix, advertising is the main determinant of the
organization’s marketing communication effectiveness.

Amazon new product development approach

There is an approach called "working backwards" that is widely used at Amazon.
We try to work backwards from the customer, rather than starting with an idea for
a product and trying to bolt customers onto it. While working backwards can be
applied to any specific product decision, using this approach is especially
important when developing new products or features.

For new initiatives a product manager typically starts by writing an internal press
release announcing the finished product. The target audience for the press release
is the new/updated product's customers, which can be retail customers or internal
users of a tool or technology. Internal press releases are centered around the
customer problem, how current solutions (internal or external) fail, and how the
new product will blow away existing solutions.

If the benefits listed don't sound very interesting or exciting to customers, then
perhaps they're not (and shouldn't be built). Instead, the product manager should
keep iterating on the press release until they've come up with benefits that actually
sound like benefits. Iterating on a press release is a lot less expensive than iterating
on the product itself (and quicker!).

Here's an example outline for the press release:

 Heading - Name the product in a way the reader (i.e. your target
customers) will understand.
 Sub-Heading - Describe who the market for the product is and what
benefit they get. One sentence only underneath the title.
 Summary - Give a summary of the product and the benefit. Assume the
reader will not read anything else so make this paragraph good.
 Problem - Describe the problem your product solves.
 Solution - Describe how your product elegantly solves the problem.
 Quote from You - A quote from a spokesperson in your company.
 How to Get Started - Describe how easy it is to get started.
  Customer Quote - Provide a quote from a hypothetical customer that
describes how they experienced the benefit.
 Closing and Call to Action - Wrap it up and give pointers where the
reader should go next.

If the press release is more than a page and a half, it is probably too long. Keep it
simple. 3-4 sentences for most paragraphs. Cut out the fat. Don't make it into a
spec. You can accompany the press release with a FAQ that answers all of the
other business or execution questions so the press release can stay focused on what
the customer gets. My rule of thumb is that if the press release is hard to write, then
the product is probably going to suck. Keep working at it until the outline for each
paragraph flows. 

Oh, and I also like to write press-releases in what I call "Oprah-speak" for
mainstream consumer products. Imagine you're sitting on Oprah's couch and have
just explained the product to her, and then you listen as she explains it to her
audience. That's "Oprah-speak", not "Geek-speak".

Once the project moves into development, the press release can be used as a
touchstone; a guiding light. The product team can ask themselves, "Are we
building what is in the press release?" If they find they're spending time building
things that aren't in the press release (overbuilding), they need to ask themselves
why. This keeps product development focused on achieving the customer benefits
and not building extraneous stuff that takes longer to build, takes resources to
maintain, and doesn't provide real customer benefit (at least not enough to warrant
inclusion in the press release).

Brand Positioning Strategy -Amazon

 For a startup, the way to succeed is to start focusing on a small niche market. Focus
on a particular need, work on it, make your product distinctive and dominate the
niche market. Smaller the segment, it is easier for the entire company to focus and
meet the customer needs, wants and desires. Once you become a leader in the niche
market, you could move to the larger markets. So, the first step is to position your
brand for this niche market.

Amazon’s Earlier Niche — In 1994, Jeff Bezos after being jolted by Internet’s
2300 percent annual growth rate, began to think about building a true ‘everything
store’ online. But he knew that building such a store is impractical at least in the
beginning. So, to position his service in people’s mind, he had to focus on a niche.
How to choose a niche? He made a list of twenty possible categories — Computer
software, office supplies, apparel, music, etc… One interesting option popped out
— The Books.

Why Books? — Bezos chose the ‘Books’ category for the following reasons

 Books was a $10 billion industry in the united states in the year 1994. A
considerable percentage of people had already been buying books through mail
order or through postal services — A potential customer base with a need for
convenience and also familiar with mail order deliveries.

 Generally, most of us would have a “Fear Of Failure” while trying out any
new things. Consumers at that time had little exposure to online buying. They
had this fear of buying goods of unknown quality. But books were pure
commodities. A copy of a book in one store was identical to the same book in
any other store. So, the customers had no “Fear of Unknown”. They knew what
they would be getting.

 That time, books were primarily supplied by two major distributors and this
would help Bezos not to waste time in approaching individual publishers.
 Millions of books were in print worldwide which even a massive retail store
cannot stock — too many SKUs — a potential advantage for an online store
since it had no such limitations. Though Jeff Bezos could not build ‘Everything
store’ in the beginning he could catch the essence of the possibility of
‘unlimited selection’ in the books category.

POSITIONING — THE DIFFERENTIATION

As Amazon began to sell books online, it was beginning to find ways to establish
and preserve the difference in a consumer’s mind as it was the next foundational
step in building a sustainable competitive advantage.

Amazon’s Difference — According to Bezos, Amazon’s major difference would

be providing greater value to customers by a combination of extraordinary
convenience, instant access, and comprehensive selection. These differences would
have been sufficient to build a competitive advantage but Jeff had one more idea.
He decided to add a foremost valuable difference — Low Prices. Amazon would
provide both value and low price.

Why Low Prices? He had his own reasons to believe that Amazon would have a
natural advantage in selling products with low-profit margin.

Bezos “I didn’t want to repeat the mistake of Steve Jobs — pricing the iPhone in a
way that was so fantastically profitable that the smartphone market became a
magnet for competition”.
He is of the opinion that high-profit margins justified rivals’ investments in research
and development and attracted more competition, while low margins attracted more
customers and were more defensible.

Amazon Competitors
In this competitor analysis tutorial, we will discuss Amazon competitors in detail.
Amazon Inc. is the largest e-commerce company founded in 1994 by Jeff Bezos
and headquartered in Seattle, Washington, United States. Amazon is the tech giant
expanding its businesses and focuses on e-commerce retailing, cloud computing
(Amazon Web Services), digital streaming and other related services. 

It started operations as an online bookseller and expanded its operations to sell

electronics, video games, food, future, movies, grocery, clothing, toys and many
more. Amazon is no more focus on only e-commerce but it also expand its physical
(brick and mortar) presence to increase its customer base and brand presence.  

Amazon e-commerce segment dominates almost 50% of the U.S e-commerce

market. All this success is made possible due its huge expansion, loyal customer
base and the Amazon prime membership program and lastly the competitive
advantage of change and adoptability.

Amazon key strength is its strong financial position which enabled Amazon
expansion decision and support other business like Amazon Web Services. AWS is
a cloud computing platform that provide services to individuals, companies and
governments. In the year 2018, Amazon annual revenue from AWS services
reached to $25.656 billion which was only $17 billion in 2017.

Let us discuss in detail who are the strongest competitors of Amazon.

1. eBay
2. Walmart
3. Home Depot
4. Etsy
5. Best Buy
6. Flipkart
 7. Kroger
8. Target
9. Netflix
10. Microsoft Azure
11. Facebook
12. FedEx
13. Alibaba

Amazon E-commerce Competitors

eBay
In the e-commerce segment Ebay is the top competitor of Amazon. eBay Inc. is an
e-commerce marketplace founded in 1995 by Pierre Omidyar headquartered in San
Jose, California. The company website engages both business-to-business and
business-to-consumer sales. After its humble beginning, eBay turned into a
household name. 

It is “the online marketplace” where individuals and businesses buy and sell
variety of goods. Buyers can freely use website but sellers are charged fee for their
items sold after providing limited free listings. Countless transactions go through
eBay website on daily basis. After Amazon, eBay is the second largest e-
commerce company in the United States in sales share at 6.1%. 

Walmart
Walmart is one of the fastest growing ecommerce retailer in 2019. This retail
giant surpassed Apple to become the third largest e-commerce retailer. Walmart e-
commerce sales up 43% in Q4 of 2018 in the US market. This was made possible
due to growing online grocery, delivery business and huge collection of
assortments on Walmart.com. Walmart has become the strongest competitor of
Amazon, Instacart and many other grocery businesses. Wal-mart.com is working
with several partners to offer grocery delivery to customers door step at more
affordable prices. 
Home Depot
Home depot is an American home improvement retailer that sells tools,
construction products and services. It has 2290 stores located in United Stated,
Canada and Mexico and these stores are the hub of its business. In the year 2018
the company generated 108.2 billion which increased by $7.3 billion as compared
last year. The Home Depot online generated 7.9% of net sales which was 6.7% of
net sale in 2017. The company online sales grew 26.2% in 2018.  
The analysis I gave shows that Home Depot online community presence is
increased as a result it is gradually investing in website and mobile application to
enhance search capabilities and overall website functionality that will increase the
user experience. As compare to Amazon the Home Depot has maintained its
position as home improvement retailer. No doubt Home Depot has one of the key
competitor of Amazon.

Etsy
Etsy also etsy.com is an online marketplace that focuses on craft and vintage items
under the categories of jewelry, home decor, furniture, clothing, bags and many
more. It provides a storefront to sellers where they can offer their listings for a
certain fee per item.

There is no comparison of Etsy with Amazon, as it generated only $603 million

revenue in the year 2018 which was 441.23 million in 2017. But my logic behind
this mentioning is the survival of Etsy in this competitive business environment.
Amazon launched “Amazon homemade” in October 2015 to target the artisan
community. Etsy charges lower commission and provides more freedom to sellers.
With all initiatives, Etsy is not only competing with “Amazon homemade”
marketplace but also improving its sales figures year by year.

Best Buy
Best Buy Co. is an American Consumer Electronics Retail Company operates in
United States, Canada and Mexico and headquartered in Richfield Minnesota.

According to forbes.com the company e-commerce sales is around 14% of the total
revenue. The company is focusing on e-commerce growth to remain competitive in
the Amazon dominated ecommerce marketplace. This consumer electronic
company is working hard to cut costs, stabilize its revenue stream and increase its
online sales. Best Buy made huge investments in the online platform and shown
improvements in the online sales. The company is also looking forward to build
digital capabilities that can increase customer shopping experience on digital
devices.

Costco
Costco Wholesale Corporation also known as Costco is a multinational corporation
founded in 1976 by James Sinegal and Jeffrey Brotaman. Costco has many success
stores, in 2015 it was the second largest retailer in the world after the retail giant
Walmart. Costco ecommerce sales for the last quarter surged by 25.5%. Loyalty
reward programs is the key factor of online sales growth. According to Costco
CFO, the company is planning to expand its ecommerce operation in Australia and
Japan. Costco need to improve its digital capabilities to better compete with
Amazon and other ecommerce businesses.

FlipKart
Flipkart is a major eCommerce platform based in Bengaluru, India. Sachin Bansal
and Binny Bansal founded Flipkart in 2007. Walmart acquired Flipkart 77% stakes
in 2018 for US$16 billion. Flipkart is competing with Amazon India. Both these
giants in Indian e-commerce market extending in similar direction e.g. digital
payments, private labels and groceries and aggressively expanding in the market. 

Amazon China Competitors

Amazon China is facing fierce competition not only from Chinese e-commerce
giants Alibaba.com and JD.com but small domestic companies like Pinduoduo,
sunning and VIP.com are a huge threat to Amazon in the Chinese e commerce
market. Amazon has less than 1% market share in China which was 15% in 2011
and 2012. According to CNN.com the U.S e commerce giant is partially retreating
from Chinese e-commerce market. It will shut down its e-commerce platform in
China in the coming few months. Other operations like cloud computing services
and Kindle e-readers and content will be fully functional in the country. Here is a
list of top eCommerce retailers in China.

 Alibaba
 JD.com
 Suning
 Pinduoduo
 Vip.com
 Gome
Amazon Competitors in Brick and Mortar Retail Industry
Walmart
Walmart Inc. is the world leading brick and mortar Retail Corporation. The
company achieved the milestone of $514.4 billion revenue. The company
expanded its wings and operating 11,368 stores worldwide and one of the world’s
leading employer with 2.2 million employees. 

Walmart is the top competitor of Amazon. Walmart is worried about Amazon.com

for a decade. Walmart started its online presence to beat Amazon business strategy.
After acquiring Whole Foods, Amazon has become a direct competitor of Walmart
in groceries. In Indian market Walmart has acquired majority of shares in FlipKart,
which is one of the leading ecommerce retailer in India and both giant retailers are
competing for market share and loyal customer base.

Costco
Costco Wholesale Corporation is another American retailer which operates
membership-based warehouse clubs. Costco is behind Amazon and trying to give a
tough time to Amazon in retail business. 
Costco offers bulk quantity of products at discounted prices to its members who
pay annual membership fee.

According to Costco fiscal report 2018, Costco generated annual revenue of

$141.576 billion with reported net income of $3.134 billion. Over the previous
fiscal year this total revenue is 9.7% increased. The company has a worldwide
presence with over 770 warehouses globally.  

Kroger
The Kroger Co. is a retailing company founded in 1883 by Bernard Kroger in
Cincinnati, Ohio. Kroger has a huge presence in 35 states and operates more than
2700 supermarkets and multi-department stores.

Kroger became a direct competitor of Amazon after Amazon acquired Whole

Foods in 2017 for $13.7 billion. Amazon offers two-hour delivery service but not
able to find success in the grocery business. Walmart and Kroger have made huge
investment in technology and stores and one of the key advantage they have is
number of physical stores.

Kroger has not only increased number of organic food items but also charge lower
prices than Whole Foods. This really affects the competition between Kroger and
Amazon. Huge products assortment and lower prices allow millions of customers
to shop at Kroger and Walmart instead of Whole Foods which is part of Amazon. 

Target
Target is another brick-and-mortar store and strong Amazon competitor. Like
Walmart, Amazon and Costco, Target offers a huge list of products. Target
Corporation is a huge presence in United Stated operating 1851 stores as of May
2019.

The merging of online and offline retailing is a key advantage to Walmart and
Target as these both retailers have a large neighborhood store presence. Retailers
like Walmart and Target have changed the retailing game in the industry. If
Amazon wants to snatch a huge chuck from the $800 billion grocery market, it
have to create a business model to its e-commerce capabilities with a physical store
network. Amazon must expand its physical presence in order to fulfill its retail
ambitions.

Amazon Competitors in Streaming Media 

Netflix
Netflix is Amazon competitor in the segment of streaming media services i.e.
Amazon Prime. It is a video on demand services founded in 1997 by Reed and
Marc headquartered in Los Gatos, California. The company offers a subscription
based streaming services with a huge collection of tv series, feature movies and
documentaries. Being one of the leading internet entertainment services having 148
million subscribers in more than 190 countries around the globe.

If we compare Netflix and amazon prime, Amazon Prime is also a subscription

services that only offers streaming videos, music and reading books but the service
also includes two day free delivery and several other benefits. Netflix is purely a
streaming-video platform whereas Amazon Prime offers a variety of added
benefits. Amazon Prime doesn’t charge extra for different video quality whereas
Netflix charges for video quality and number of devices.

Other Amazon Competitors

Microsoft Azure
Both Microsoft Azure and Amazon Web Services are the leading cloud computing
services around the globe. Microsoft Azure is a leading cloud computing platform
offered by Microsoft. Azure is responsible to build, test, deploy and manage
different application with the help of Microsoft-managed data centers. Microsoft
reported $30.6 billion revenue in Q3 2019 where Azure revenue grown by 73%
which makes it’s one of the largest cloud computing services in the world.

Facebook
Facebook is a huge social media platform and dominate the social sphere while
Amazon online retail business. Amazon is trying to add social aspects while
Facebook want to enter e-commerce. Facebook marketplace has a huge success in
2018. Small business owners and local sellers are using Facebook marketplace to
offer goods and services. This is a direct threat to Amazon’s resale market which is
moving Amazon to private labelling even more. Facebook and Amazon are
marketing competitors where small business owners use Facebook sponsor ads and
Amazon PPC.
FedEx
FedEx is a Courier delivery services founded in 1971 by Frederick W. Smith. The
company is headquartered in Memphis, Tennessee. The company has a robust
delivery system known for overnight shipping services that provide customers to
track package and real-time location updates. In the fiscal year 2018 FedEx
delivered 8.34 million packages on daily basis. The company is operating in 220
countries and territories. Amazon has already mentioned that it will compete with
FedEx and UPS which means that Amazon is trying to become a key player in the
shipping and logistics industry. According to analysts Amazon Air is an important
progress in this regard.