Friday, December 29, 2017

Disruption - Amazon Essentials

"Amazon Basics" is a line of low cost products created especially by Amazon. "Amazon Essentials" is an apparel line created by Amazon. This picture has a "basics" speaker and a low cost "essentials" product (the notebook):

- a portable wireless bluetooth speaker for $19.99
- Essentials dot matrix notebook for bullet journal for $9.92

I was impressed by both of these items. When you go to Amazon and either the basics or essentials section there is a wide array of products to choose from at amazingly low prices.

Amazon is choosing which markets and products that they want to compete in directly and they offer what appears to be reasonable quality products at low price points. If you cycle through the product list you can see a lot of everyday products or items that don't normally have a strong branding component.

When this is combined with Amazon Prime for free delivery it would seem that these items would be very competitive in the marketplace. Amazon doesn't pay for marketing or branding since you are already in their web site when you are searching for items. It could also favor its own products in searches, partially because it is their own brand but also because they seem to offer prime and a low price as well which also factor into the search algorithm.

As a consumer I recommend checking out some of these products for essentials and ease of delivery but as someone interested in business, economics and technology I would view these lines of business as potentially very disruptive to other sectors of the economy where branding is not essential.

Cross posted at Chicago Boyz

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