How does Amazon provide value to its customers ?

Why does a customer go to Amazon every time he wants to buy a product ? It is because the customer gets exceedingly good economic value.

Customers would not encourage Amazon if they were not satisfied with the services of Amazon and felt they were benefiting from Amazon. For some it is the extremely large variety of merchandise, for some others it is the good quality, for some it is getting original products (NO DUPLICATES) and for some others it is getting items at affordable and competitive rates. The value could come in different forms.

We can classify the economic value into four groups

• customer
• product
• delivery and
  
• environment

 Customer

• excellent variety, something that one can never get in any conventional store
• even the rarest of items, one can get fast delivery in the same day and for rare items in a maximum of 4-5 days
  
• excellent supply chain management from suppliers to warehouses to the customer premises
• An Amazon Prime customer gets free delivery 
• No botheration of visiting the store, traffic jams, pollution, waste of time ..
• reduced fuel costs 
• critical product details, images are very useful for customer
  
• Customer reviews help customer take the decision
  
• Unnecessary extra expenses like unnecessary softdrinks, tea, snacks etc are avoided
• better control over home expenses and expenditure
• high reliability of product and service
  
• regarding pricing one gets an excellent price for products
• fast and customer and after-sales service as Amazon  customers get preference over normal customers
  
• Amazon respects customer privacy as personal data has not yet been compromised
• Amazon respects customer uniqueness, individuality and freedom
• Amazon has excellent search and query system benefitting the customer 
• Buying recommendation for customers 
• full product details with safe operating procedures give customers added confidence to buy the products
  
• automatic one button reordering policy
• no-delay - lightning website opening and operations speed because of an efficient supporting cloud mechanism
• giving customers more than what they need or asked for
• constantly introducing new and innovative products at the website
• making site operation very mobile friendly
• Amazon brand items  reinforce customer belief
• Availability of polite, fast, quick, responsive, effective customer service
• fast and quick payment options
• Very friendly gifting options
  

 Product

• almost 100% of the time, one gets good quality products, undamaged due to transit
• high quality packing ensures safe delivery
  
• the instruction pamphlets that accompany helps give information regarding safe product usage and safe disposal
  
• no pilferage in transit, one get what one pay for and do not have to run after Amazon to get stolen / damaged goods replaced
  
• customers get original products (not duplicate) that offer good value for the money with good warranty. 
• Because of original products, the end result is longer life and utility of product
  
• good product return / exchange policies, giving great customer satisfaction often extending to 10 days by which customer get either a full refund or exchange of the product if not satisfied

Delivery

• because of the Amazon arrangement with companies and their service centres, an Amazon product gets fast service. 
• On time reliable and safe delivery, if not early 
• No pilferage
  
• courteous delivery partners instill confidence in customers for repeat orders
• convenient delivery timings for customers
  
• free delivery for Amazon Prime subscribers

Environment

• Amazon has commitment to lower the Carbon footprint of its operations by using renewable packaging, 
• avoiding unit last mile delivery and doing milk runs wherever possible
• making efficient use of technology for Information management, logistics, waste management, returns management
• combined deliveries for residential societies, educational institutions, offices etc mean less transportation and less fuel expended
  
• less vehicles on the road is good for the environment and roads
• less vehicles on the roads mean less congestion
  

Amazon overall assures the customer great value when he shops with them

As a result even with all purchases, the customer is able to have a control over his spending and have some savings at the end of the month.

Amazon should enter the field of logistic and supply chain services for other smaller organisation. It should also enter the field of healthcare and Insurance, which presently is being held by vested interests and customers are being threatened, terrorized and fleeced. 

George.