Now Accepting Apple Pay

Apple Pay is the easiest and most secure way to pay on StudyMoose in Safari.

Pricing strategy of Amazon

When talking about the online booksellign industry, the ofirst thing that comes to mind is Amazon. com. Amazon has been considered as one of he largest website which has different services and over 32 million clients and consumers in over 150 nation. It is an online retailer of published books and other goods and was built as a micro business in the US. It is considered as one of the famous site providing different products and goods and tok advantage of the optentials of onlie marketing approach (Christensen & Raynor 2003).

In addition, it is also known as an information broker that sells through the use of online proces. With their ambition f becoming a premier online retailer through leveraging their brands as well as models in business, the company used different pricing approach as compared with brick and mortar companies. The company have low prices compared to other companies with various discounts offering to their target market. To be able to stay competitive in the online market, Amazon’s pricing strategy composes the needs of the two out of ten approaches in price variation.

Get quality help now
Bella Hamilton
Verified writer

Proficient in: Business

5 (234)

“ Very organized ,I enjoyed and Loved every bit of our professional interaction ”

+84 relevant experts are online
Hire writer

This includes Amazon’s approach of keeping the same price presently charged by the company but give the clients good quality. Herein, the management of Amazo sees to it that they keep their basic prices for their products and tried to give their clients a quality product that will meet their demands. It can be said that Amazon have great offers with affordable costs as their pricing approach because they know that there are many competitors online than brick and mortat companies (Gosain and Lee, 2002).

Get to Know The Price Estimate For Your Paper
Number of pages
Email Invalid email

By clicking “Check Writers’ Offers”, you agree to our terms of service and privacy policy. We’ll occasionally send you promo and account related email

"You must agree to out terms of services and privacy policy"
Check writers' offers

You won’t be charged yet!

In this regard, it is said that price dispersion is lower in Amazon than in the price of brick and mortar companies and one of the reasons is that cost structures for retailer is continuously increasing (Smith et al, 1999).


  1. Gosain, S. and Lee, Z. (2002). A Longitudinal Price Comparison for Music CDs in Electronic and Brick-and-Mortar Markets: Pricing Strategies in Emergent Electronic Commerce. Journal of Business Strategies Volume 19 (1).
  2. Smith, M. D. ; Bailey, J. ; Brynjolfsson, E. (1999). Understanding digital markets: Review and assessment. MIT Working Paper, Massachusetts Institute of Technology, Cambridge, MA.

Cite this page

Pricing strategy of Amazon. (2020, Jun 02). Retrieved from

👋 Hi! I’m your smart assistant Amy!

Don’t know where to start? Type your requirements and I’ll connect you to an academic expert within 3 minutes.

get help with your assignment