It’s Hard to Compete With the Economics of Amazon (Video)
Amazon’s focus on doing business with customers who buy everything from books to food to home goods from the online retailer puts those solely concerned with selling books at an economic disadvantage, said McQuivey at the Digital Book World Conference in an exclusive video interview.
Amazon…wants to aggregate everything…. They want to bring books together with movies…they want to centralize it all in this very inexpensive and elegant device called the Kindle Fire.
That portal to a customer relationship is more powerful than anyone else’s, even Apple’s, because Amazon has the ability to sell you whatever you want. You want to buy a book? Sure, they can help you do that. You want to buy who knows what else…you can get all of it on Amazon.
Amazon, in the long run, only cares whether or not they make money from you, the customer. They don’t care as much whether they make money from you, the book-buyer, and that changes the economics for everyone who is principally concerned with you, the book-buyer, because how do you compete with the economics of aggregating all of those profit margins into one single customer relationship? No one else has the power to do that…not google, not Microsoft, not apple…not even Facebook.
More Insights From McQuivey and Forrester Research:
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