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Overview



Founded in 1995, online retailer Amazon is a pioneer in the online shopping selling websites. Starting as an online bookstore, Amazon has emerged into a one-stop convenience store with endless purchasing and selling possibilities. Non-book sales count for over 75% of Amazon's sales now (Robinson, 2010) In your pajamas, you can shop for categories like electronics, groceries, jewelry and power tools. Amazon also allows you to sell items by creating a seller account, similar to bargain sites like eBay. Advertising on Amazon is similar to other websites, except not only are products advertised on Amazon, but most likely are available to buy on Amazon as well. There are two ways to advertise with amazon.com. They are product advertising and display advertising. Product advertising is based on a cost per click system and all the seller has to do is upload his product catalog and set a daily budget (Explore Advertising n.d.). Display advertising involves a sellers product being displayed throughout the amazon website in various ways including banners or expandable marquees (Explore Advertising n.d.). Even having a product listed for sale on their website can help gain a lot of awareness among consumers.


Other Interesting Qualities of Amazon


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No more trips to the grocery store, with the click of a button you can purchase endless possibilies

Reasons for use:

ONLINE SHOPPING!!! Who does not love online shopping? Stay at home moms are a great target because they do not have to pack up all the kids in the car to take they to the store, when they can just order the things they need offline. So why wouldn't a company want to advertise their products on this site to enhance the idea to the consumer the necessity of the products being advertised. Amazon.com sales in 2009 alone were over $24.5 billion dollars. Compare that to only $17 billion in sales for all US bookstores combined in 2008, and it is clear to see why advertising on Amazon.com can help promote vast amounts of exposure to consumers from all over the world (Robinson, 2010).
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Example of a women online shopping.


Limitations:

Some companies might be taking a risk of putting a message/advertisement on Amazon and not actually reach the target they want. Because Amazon.com is one of the most popular websites, advertising can be expensive. Amazon.com is known for their giant sales and great discounts. However, because Amazon sells products so cheap and the company expects increasing discounts from publishers and manufacturers that may not necessarily come, Amazon is more likely to increase advertising prices to compensate for the loss of revenue (Robinson, 2010) Also since Amazon is so popular, it attracts many companies to advertise, making the chances very slim that an advertisement can be seen on the first page.


Costs of using:


Amazon services lists their pricing on their website page. Amazon does not charge a monthly fee, rather a cost-per-click charge. Different categories are charged different amounts per-click. They also have a How it Works section complete with a video.

  • Ways to save on Amazon.com

  • Presentation on some good ways to save on Amazon.com

The cost per click method helps you avoid paying monthly fees and only costs the advertiser when their product is actually being searched. The costs per clicks with amazon vary depending on the product being advertised. The cost per clicks usually vary anywhere from 10 cents a click to 75 cents a click (Amazon Product Ads n.d.).


Reach & Frequency:

The reach for Amazon would be the first time anyone visits their site to see what they have, and look around at what they could possibly want to buy. The Frequency goes up when their consumers keep coming back to look for new items that they might want to purchase. The frequency of the ads placed on Amazon depends on the amount of ad time bought. Advertisements are placed on corresponding sections for the most part. For example, their may be Dell ads under the computer section, and their may be Disney ads under the Kids section. These help segment the audience they are looking for.


Scheduling:

The scheduling for Amazon would be continuous year round. This is because it is a Web site that customers often frequent because they know Amazon has the goods they want. However, Amazon is flooded with even more traffic during the holiday seasons (Robinson, 2010)

Impact:

A great impact has been made with the advertising on Amazon because they are still and up and running company. Beside the revenue they make from selling their inventory, a great deal on money comes in from the advertisements on their page.

Companies Using This Advertising

Most companies that can afford to advertise on Amazon.com are really big and popular companies. These companies include: Mastercard, HBO, Dell, American Express, Disney and many others.



Other Interesting Qualities:

Amazon Prime



  • Amazon's annual fee is just under $80 and includes discounts on shipping rates as well as discounts on many items.

Amazon launched a site for Audio Books called Audible.com



  • The easy nature of listening to an audio books as well as how easy it is to take that book with you on the go i.e.: Mp3 players, iPods, iPhones, iPads, Laptops, Blackberry's the list goes on and on. These developments in the past few years have made audio books both more accessible and more convenient than a paperback. Audible.com is run by Amazon.com and offers many books at great deals as well as being a central location in which many publishers turn to in order to generate a large amount of sales. With this massive market that Audible has publishers will lower their rates in order to appeal to this large market. This is wonderful news for the frequent reader. Especially if someone is constantly on the go an audio book may be the best way to go. Being able to listen to a book while driving, riding the bus or train, walking down the street, cooking dinner the possibilities are endless. This service also comes with discounts upon signing as well as a credit system giving even the most basic user a free book just for being signed up.


Amazon's Kindle is a device that is the next generation of eBooks. A price of $259 with an Amazon Prime account the Kindle allows it users to download books in minutes if not seconds. It does not need to connect to the internet in order to do so. The screen or face of the Kindle is designed to have more of a look and feel geared toward a paperback book. Having over 500,000 titles for sale it is one of the largest distributors of online books. Its largest market seems to be people on the go and despite being criticized for a lack of web browsing features it has been a hit.

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Reviews






Ads





Shoe and handbag website launched by Amazon.com -
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-ad for endless, Fall 2009
-They can also be found on Facebook

Amazon Fresh is a website that organizes home grocery delivery - Additional info

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Picture_5.pngIs a movie database owned by Amazon





References
Amazon Product Ads (n.d.). Amazon Services. Retrieved December 12, 2010 from
http://www.amazonservices.com/content/product-ads-on-amazon.htm?ld=AZAdvertLearn

Explore Advertising Opportunities With Amazon.com(n.d.). Advertise With Amazon. Retrieved December 12, 2010 from
http://www.amazon.com/Advertising/b?ie=UTF8&node=276241011.

Geck, C. (2009). Selling Online 2.0: Migrating from eBay to Amazon, craigslist, and Your Own E-Commerce Website. Library Journal, 134(11), 82. Retrieved from Academic Search Complete database.

Robinson, C. (2010). The Trouble With Amazon. Nation, 291(5/6), 29-32. Retrieved from Academic Search Complete database.