It is due to quick delivery and easy shopping that Jeff Bezos was bent on stating that consumers are addicted to Amazon.com (NASDAQ:AMZN). He thinks this is the reason why they won’t cause uproar as the negotiations between the company and suppliers are making it difficult to come across products on the website.
The CEO of Amazon (NASDAQ:AMZN) is betting on consumers like Paul Shi, a resident of New York, that started purchasing on the company’s site around two years back. This consumer used to purchase used books, flip flops and other items that they offered. He stated that his spending patterns will remain the same even after considering Amazon’s (NASDAQ:AMZN) competition with Walt Disney Co. (NYSE:DIS) and Hachette Book Group.
It has come to notice that negotiations between Amazon (NASDAQ:AMZN) and Hachette related to the decreased sales because of e-books have become public. Amazon (NASDAQ:AMZN) has barred the pre-ordering of Disney movies in discs.
With the unavailability of pre-order DVDs and books, the company is still intact. The site has increased by 7 percent since last year in visitor traffic in the month of June. Yet even though some books and DVDs are now unavailable for pre-order on Amazon (NASDAQ:AMZN), the company’s business has continued to remain unharmed. Arbitrator merchants’ sales have increased above 40 percent through Amazon (NASDAQ:AMZN) in July.
With excellent service of fast-shipping and low prices, Bezos has gained loyal customers. The huge customer base makes it tough for suppliers.
Needham & Co. (MUTF:NEAGX) analyst Kerry Rice reported that the company has revenue of $100 billion but also thinks that it would undergo minor suffering.
It has come to notice that Amazon’s (NASDAQ:AMZN) stock has fallen by 9.7 percent in the last month after it stated its biggest loss that occurred in 2012. The shares have fallen by 18 percent in the current year while there is an increase of 5.3 percent in S&Ps 500 Index.
There has been an increase in site visits in the US by a little more than half of a percent till 159.6 million from May in the month of June. ComScore Inc. (NASDAQ:SCOR) reported that when the debates came out into the open, visitor traffic escalated by 6.9 percent since twelve months ago.
Merchant arbitrators who sell their goods on Amazon (NASDAQ:AMZN) have increased to 40.4 percent from a year before July as compared to 34.3 percent in June and 28.1 percent in May as provided by ChannelAdvisor Corp (NYSE:ECOM) .
According to Codex Group LLC, 39 percent consumers are aware of the clash between Hachette and Amazon (NASDAQ:AMZN) and yet a majority either has no opinion on the matter or isn’t purchasing a smaller quantity of books from the company.
With Amazon (NASDAQ:AMZN) Prime being an attractive consumer base, the company decided to add more members to it starting second quarter in the current year bearing in mind the increased annual price from $79 to $99 as stated by CEO, Tom Szkutak in a call the previous month.
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