Amazon’s (NASDAQ:AMZN) New Element

Amazon (NASDAQ:AMZN), the multibillionaire internet services provider continues to adjust value proposition of its main investors to improve it. When the service started Amazon (NASDAQ:AMZN) gave away free two days shipping to their first customers from hundreds and thousands of Amazon’s items and then charged the subscribers with $79 per year. However after the decline in trend of giving away free shipping deliveries they then started providing online free video and streaming services which also involved music services for their prime subscribers for $99.

However the company has launched Amazon (NASDAQ:AMZN) element a new key feature which is line of every day essentials only for the prime members. The company wants to take their relationship with the prime to the next level. Elements on the other hand is a great threat to the Amazon (NASDAQ:AMZN) vendors which are already facing increased rivalry from the retailer themselves. Elements has started currently with only providing diapers and baby wipes and some other daily essentials.

Amazon (NASDAQ:AMZN) is positioning elements currently among the high end division which will allow the buyers to track the product down even to its origins, manufacturing place and the date. All of this can be done by using Amazon’s mobile app. This new product strategy is based directly on the feedback from the customers. The customers demand premium high standard products which meet their expectations and standards.

This is not Amazon’s (NASDAQ:AMZN) first target to sell products under its own label. The company also provides high quality cables and other technological and electrical accessories. The cables provided by Amazon (NASDAQ:AMZN) are more reliable, high tech and well functioning as compared to the other low quality cheap cables. The advantage here to Amazon (NASDAQ:AMZN) cables is that they are cheaper than the Apple ones.

The company also focuses more on its prime subscribers as compared to the regular customers. The purpose of this niche discrimination is that the prime subscribers spend $549million on Amazon’s (NASDAQ:AMZN) products and services against the regular non-subscribers which only spend $349millions. The company also happens to be working on its pricing strategy. According to the statistics those customers which spend less $50 in 90 days are less likely to be the prime customers.

The elements provided by the company provide some extra incentives which have the potential to lead the regular customers towards the prime. The data was collected from a conducted survey which included almost 2000 shoppers for Amazon.com (NASDAQ:AMZN). The company is planning to further expand the elements if its diapers and baby wipes go well. According to analysts the quality is the main factor of success here for Amazon (NASDAQ:AMZN).

The company is also expected to open a new area for prime shoppers that would encourage the primes to spend even more. The free shipping prime shoppers it’s an easy measure of calculation and an easy opportunity to decide whether they should go for it or not. However music listeners, video surfers and those sometimes go for exclusive shopping only for $99 per year.