Why Are Things Cheaper on Amazon? (A Look at Prices)

Everyone loves a good deal, and Amazon is one of the sites you to turn to when you want to save money. Why are things cheaper on Amazon, though? Does it mean the products aren’t good quality?

This blog will outline why Amazon’s prices are usually much lower than major retailers such as Walmart and Target.

Let’s get into it.

Why Are Things Cheaper on Amazon?

Amazon’s lower prices come down to three main factors.

Marketplace Power

The first is marketplace power. Amazon is the biggest marketplace in the world, and this means competition is fierce. Because of the sheer number of sales on offer, third-party sellers and vendors are happy to sell their products for less because they know the overall volume is huge.

Innovation

The second is innovation. Amazon hires the best of the best; their systems and infrastructure enable them to harness AI, utilize robots in their warehouses, and generally ensure their operations are as streamlined and as cost-effective as possible. Who benefits from this, you might ask? Well, Amazon and the customer since their innovation and cost savings activities end up in their customer’s pockets.

Innovation and customer obsession is the core reason for Amazon’s popularity, and this popularity allows them to offer the very best prices.

Purchasing Power

Then there’s Amazon’s purchasing power. Amazon has more cash and resources than anyone else in the space; they can secure the very best purchase prices with their marketplace reach.

If you are in the buying and selling game yourself, you’ll know that the more you can buy, the better discount you can secure; for some brands and manufacturers, a contract with Amazon can be life-changing.

Manufacturers can also sell directly on Amazon, and by cutting out the middleman, they can sell at lower prices (This is exactly what we do!).

Are Things Cheaper on Amazon Prime?

One of the other perks of purchasing products on Amazon is that if you sign up for Prime, you pay even less. Amazon Prime members hardly ever pay for shipping, which reduces the overall checkout total.

This keeps Amazon customers coming back for more, which in turn increases the popularity of their platform and continues to compound the points I mentioned in the section above.

You can still qualify for free shipping as a non-Prime member; it just means you need to spend more.

Does Amazon Sell Fake Products?

Amazon has suffered from fake products and dodgy sellers for some time; it’s understandable for a marketplace of this size.

Last year they launched a task force with the sole responsibility of battling this issue.

Fake products have always been a concern among Amazon shoppers, which is why I am often asked: Is Amazon safe?

Amazon is an established marketplace that is dedicated to protecting both buyers and sellers. Not only is your personal and financial information safe, but there are steps you can take if you believe you’re dealing with a fraudulent buyer or seller.

Here are the steps you would take to file an A-to-z Guarantee Claim against a seller on Amazon.

Ideally, you want to avoid scammers and fake products altogether.

To ensure you are protected, make a point of checking a seller’s reviews and ratings before you make a purchase. And if at any point you get a request to make a payment outside of Amazon, consider this a scam.

If you do end up buying something and it isn’t right, Amazon’s policy is always to refund the customer; most of the time, you’ll have to provide pictures or send the item back (free of charge).

Lastly, be careful when clicking on any links in an email you believe might be from Amazon. Unfortunately, phishing is still a reality.

If you’ve got any questions, let me know in the comments below.

More soon.

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