| m-link"> | | | | The implications for small and medium-sized retail |
| You'd have to live under a rock not to know who | | | | businesses attempting to replicate such success are a |
| Amazon is. Well the book and media megalith is | | | | little bleak. |
| getting into the world of consumer electronics. It's | | | | The Kindle is currently exclusively manufactured and |
| probably a good sign that you should follow suit. | | | | sold by Amazon, meaning more competitive pricing |
| Amazon.com, the internet bookstore giant, has been | | | | due to a smaller accumulation of mark-ups. |
| expanding its inventory to include a wide variety of | | | | If this trend continues as Amazon broadens it's |
| products over the last few years, especially in | | | | product base, they will attract more and more |
| electronics. In the past, Amazon have sold products | | | | customers away from other, smaller retailers who |
| made by other manufacturers, but they have | | | | cannot match Amazon's prices or supporting |
| recently launched their own branded products, which | | | | infrastructure. |
| consist primarily of blank CD/DVD media and | | | | However, niche products unique to your company |
| accessory cables for electronic goods. | | | | that don't directly compete with the big boys such as |
| Article Ref: G3DU25X | | | | Amazon may do well. The trick will be to find a |
| One of their most recent additions to the | | | | market you can exploit. Market research companies |
| marketplace, though, is a gadget called the Amazon | | | | can be employed to find such niche markets. |
| Kindle, an e-book reader that can download e-books, | | | | Sourcing Electronic Gadgets |
| newspapers, magazines and blogs from Amazon's | | | | In order to source electronic gadgets, small and |
| library of over 350,000 titles. This is Amazon's first | | | | medium-businesses will have to think about how to |
| foray into manufacturing and so far it has been a | | | | find, evaluate, and engage suppliers of the goods and |
| success, sales-wise. The introduction of the Kindle 2 | | | | services they require to make the transition into the |
| saw sales grow exponentially. The latest version, the | | | | gadget market. |
| Kindle DX, was released in June 2009. | | | | Cross-cultural issues, time differences, language |
| A Surprising Move? | | | | barriers, quality control, shipping and product |
| Amazon's move into this marketplace was surprising | | | | assembly from separately manufactured component |
| because traditionally they have been a retail outlet | | | | parts are all factors that must be considered. |
| rather than a manufacturer, and their infrastructure | | | | Selecting products that blend and complement your |
| would have had to be modified to a great degree in | | | | existing inventory of products and services will not |
| order to facilitate this change. | | | | only provide a one stop shop for customers, but |
| Amazon's largest strength as it begins to adopt this | | | | increase the chance of repeat business as further |
| additional focus is its brand name recognition and | | | | services and supporting products are desired. |
| brand trust. Everyone has heard of Amazon.com, and | | | | So what should you do if moving into the gadget |
| most people are familiar with the user-friendly and | | | | business is on your wish list? Research, in a word. |
| innovative ways they present themselves online. This | | | | Find out who would use what, and how that would |
| can only mean good things for prospective sales. | | | | tie in with your existing business. |
| So What are the Implications for You? | | | | |