Clouded by the release of the ipad mini, news this week brought light the issue of Amazon’s 3 quarter earnings. Their forecasts for the fourth quarter holiday shopping period are not looking too great either. Amazon spends heavily on new distribution warehouses and technology to support its cloud-computing business. On top of this they sell their kindle tablets at cost, which does not help short term earnings.
I think that in order to have a better forecast of the fourth quarter and to continue being successful, they need to start looking into marketing and advertising to people who purchase their kindle products. They should figure out who the consumers are and put them into groups that they will start focusing their marketing on. I am not sure if they already do this or not, but it would help their sales. I know they are more worried about short term sales but this would all around help their numbers.
To fix the issue of short term sales they should make selling and purchasing on amazon more desirable. They have already put things into place such as Amazon Prime and allowed people to try a free trial for a month. You get free two day shipping and other neat perks. Little programs such as this could really make using Amazon’s services more appealing and raise their short term sales. Another program they could put in place is something like every time you purchase books, movies, cds, etc. you get points or % off on kindle products such as e-books.
Amazon needs to focus on creating incentives for their consumers and figure out who their main consumer is.
What should Amazon do to raise their short term sales? Should they really be worried about short term sales or does the purchasing on kindle products later on make up for it? Amazon is a powerful company in todays economy and they need to focus on maintaining that status.