Amazon.com, Inc (NASDAQ:AMZN) has come along to get to where it is today. The company started as a bookstore and has now expanded to become an “everything store.” This business guru admits that it has had to tackle one product category to the next until it got to its current stature. Today, the company has indicated its determination to crush its competition.
The new strategy
An official working with the company says that the sale of the low-priced items had started becoming a nightmare for them. It resulted in significant losses considering that customers paid a much lower rate compared to what the company spent on shipment.
The company thought it wise to make it difficult for customers to purchase single sub-items. This did not turn out well because the company ended up with huge volumes of the unsold low-priced items.
Amazon decided it wouldn’t let the challenge get on its way. That was the reason it decided to start shipping such items for free within one day to the Prime Customers.
Facing criticism from other players
Some businesses haven’t welcomed the move by the company. According to them, Amazon has always been the kind of company that always resorts to anticompetitive behavior. They think that the move will affect their sales volumes, but Amazon, on the other hand, says it will continue doing what is good for its business.
An Amazon spokesperson has spoken regarding the matter. He says that customers have always been fond of the company’s dynamic products and the associated low prices. This leader says that it is their right to choose what they want, including shipping products within a day. He adds that they will keep looking into ways to improve the experience of those consuming their products.
A former New York State antitrust enforcer Sally Hubbard has also aired his sentiments about the matter. He doesn’t trust Amazon’s move to ship items for free and believes there is something the company is not telling them.
He stated, “It’s not possible and it highlights how pricing strategies can be used to drive rivals from the market. But antitrust law currently misses this anticompetitive conduct with its obsession with low prices.”
