Sell ​​low, buy high, Amazon's business model

Sell ​​low, buy high, Amazon's business model

A few weeks ago we issued an article about how addictive it was to have a Kindle in our hands, many agreed with the opinion that the ease of buying through a Kindle favored impulse purchases that made us spend a lot of money on ebooks, music, applications and games among other things. Well, it seems that we are not the only ones who think that buying through the Kindle is expensive.

During yesterday, Amazon lowered the price of his Kindle at $ 49, considering that their eReaders and tablets are already cheap, How does Amazon make money? This is the question that many are asking and that after seeing a simple statistic we all understand and know its answer.

Amazon user makes a larger purchase

It is true that Amazon sells its devices very cheap, so much so that sometimes it is selling them below its cost but on the other hand, market studies are showing that the Amazon user who has a Kindle, be it an eReader or a tablet , buys more than a user who does not have it, so while a user without Kindle spends about $ 790 a year, a user with Kindle has an annual purchase worth $ 1233, more than 400 dollars a year which makes it profitable for Amazon to lower the price of its devices, because if this statistic is maintained in more than half of its customers, Amazon not only recovers the losses but also has profits.

Amazon with the business model of the s. XXI

The data from Amazon is surprising but at the end of the day they are logical in the times we live in, the problem is that a large part of the population is used to the times when IBM and Microsoft dominated the technology market and there were no more. Things change and the model that Amazon is proposing is not new, but it is unique with Amazon. Apple has already incorporated this business model to its devices, but after the fanatical follies, he retracted a bit of this and opted for the luxury range, which in the end is being introduced throughout society. But going back to Amazon, maybe at this point, in the cheap sale and the expensive purchase, the secret to defeating the great giant will be found. Let me explain, currently many bookstores and publishers complain about Amazon prices and the volume of business that Bezos's company has, but really Do they complain about it or do they complain because they see the results? What I really mean by this rodeo is Would the book and ebook market move the same without Amazon? I do not think so. I believe that this business strategy is addictive and may on many occasions lead us to buy ebooks or music that we would not otherwise buy. And at this point is where Amazon falters, if someone manages to do the same, Amazon could have serious problems. Do not you think? To you What do you think of this business model? Do you think it is legal and / or feasible? Will someone be able to unseat the giant Amazon?

More information - I've been eaten by amazon

Source - Business Insider


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  1.   l0ck0 said

    rakuten as soon as he makes available for sale in europe the material of his japanese filial fucks amazon.

  2.   l0ck0 said

    and normal that the kindle user spends more than the one who is not chained to that platform for the simple reason that he HAS NO MORE REMEDY than to buy in amazon

    1.    Pepe Potamo said

      What clairvoyance yours. They have had to veneer because of Amazon ...

  3.   Joaquín García said

    Hi L0ck0, first of all thank you for leaving your comment. Regarding what you comment, normally it does not have to be like that, the user of the Kindle does have other options, the point is that their store is the most comfortable. Regarding Rakuten, I don't know if the same dog with a different collar will come out in the end. At the moment, although it has good things, it is having some Amazonian streak. But hey, as they say, time to time