For more than two decades, Amazon has been enticing customers through “discounted” prices, focusing on sales volumes over profit. But the company is now dropping list prices from its products, with only the final sale price visible to customers. Being a firmly established e-commerce player, Amazon no longer needs to use discounts or best prices to attract consumers, in the view of many. Its loyal user base will continue to use the e-commerce portal for their online shopping needs, irrespective of whether they get the best deal or not. This strategy should help Amazon focus on both sales volumes and profits, allowing it to create a profitable product mix in its general merchandise segment. This move will also allow the e-commerce giant to mute controversies over fake discounts as it highlights real deals.
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