Amazon Slaps It's Brand On Some Consumer Electronics

http://bits.blogs.nytimes.com/2009/09/19/amazon-slaps-its-brand-on-some-consumer-electronics/index.html?ref=technology

Summary:

The widely popular online store (Amazon) is becoming the retailer of almost every other kind of product. Similarly to Safeway cereal, RadioShack batteries, and even Wal-Mart diapers, Amazon is launching out their own brand name of products such as Pinzon bath towels and sheets, Strathwood patio furniture, and Denali power tools. This way Amazon can gain a larger percent of retail profits and expand their name and popularity. Evidently, Amazon is starting their expansion in their own private-label line with Amazon Basics which is a collection of consumer electronics items. Amazon's vice president, Paul Ryder explains that Amazon hopes to source products directly and cut out the intermediary. In this way, Amazon is able to pass discounts directly to customers. Although, the items sold on Amazon Basics are not all that exciting, it is clear that the items will eventually gain excitement. However, it is doubtful that Amazon will be offering any HDTV's any time soon.

Connections:

This article explains Amazon's hope of becoming a retailer of more than just online items. In this way and with the business of Amazon Basics, Amazon will become apart of the normal channel of distribution. Consumers can find electronic items such as CDs and DVDs through this channel of distribution which are the majority of items sold on Amazon Basics. Also, it seems that Amazon hopes to be apart of the direct channel of distribution because Amazon hopes to pass discounts to customers directly. This channel of distribution returns to the original roots of Amazon; selling goods online to customers directly. Amazon is a prime example of an industrial user that buys products from secondary manufacturers to sell to consumers like ourselves. Finally, chapter 1 mainly highlights the field of retailing and by slapping their brand on various items, Amazon has entered an entire new area of retailing.

Reflection:

As a frequent consumer of Amazon, I am thrilled that Amazon is expanding their label. I found Amazon's business ethics described in the article to be very clever. For example, sourcing out products and cutting the intermediary to pass discounts directly is a convenient and easy way to gain good reputation and loyal customers. Although, the products available to consumers could be a bit more exciting, I am still very happy with a simple way to buy electronic goods. Fortunately, Amazon provides this and possibly, in time, more. With a smart and reliable business plan such as the one Amazon contains, I am certain that Amazon Basics will do wonders in the world of retailing.