Friday, February 06, 2009

Why Does Amazon Thrive?

This is a great breakdown on why Amazon is doing so well while almost every other retailer in the world is suffering.

Customers want cheap stuff, but they also want convenience, quality, and a friendly, hassle-free atmosphere. Amazon isn't Tiffany's, but it's not a chaotic, out-of-the-way discount zoo, either. Instead it occupies a sweet middle spot—it's the nicest place to buy cheap stuff. These days, that combination goes a long way.

I think this is the crux of Amazons appeal. You can save money but not feel like you are forced to do it. I think the idea that people can still feel like it wasn't the recession even though they are forced to save money. Amazon fills the niche that Wal-Mart or the Dollar Store has a hard time with. They provide just about everything you want at a discount and without the hassle of driving, parking and dealing with giant bins of things you probably wouldn't buy if there wasn't a recession on.

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