Most think of Amazon as an online retailer since the company branded itself that way and lots of us buy products from Amazon on their e-Commerce Web site. Amazon recently passed Walmart as the world’s biggest retailer (note: some dispute this claim when Alibaba in included). Unless you need to touch, feel, and try on the merchandise, Amazon is perhaps the most convenient place to find and buy products ever invented. Marketers know that the primary added-value function of distribution is convenience. That’s not all. Buyers can use the site to read reviews, receive suggestions, and comparison shop for better prices. With increasing disincentives to go to physical stores – traffic, parking, wasted time, and opportunity costs, Amazon has gained the upper hand as more and more people feel comfortable buying online. However, since Amazon offers ultra competitive prices on small margins, it typically loses money on small orders. Offering Prime pre-paid membership is an attempt to dampen these losses.
Amazon: Everything From A to Z Now Includes Whole Foods – HuffPost