Seven Psychological Tricks Applied By Amazon In 2022
🔍Insights
Amazon is the most common e-commerce platform providing services across the globe. The start of an Amazon was quite simple with a single product in its basket. Now in the year 2022, Amazon consists of millions of products on its e-commerce platform. Apart from the e-commerce market, Amazon has also topped in its Technology business.
It is not an easy task to manage and achieve a position as high as Amazon has reached. There are many tactics applied by Amazon in all possible directions. The prime service enabled by Amazon earned it many customers. Especially those who wanted to receive their product delivery within a short period. Apart from these, Amazon is famous for good quality products at a lower rate. To achieve this, Amazon applies many Psychological Tricks in its pricing strategy.
Amazon's Pricing Strategy
Need Of Using Psychological Tricks By Amazon
Basics of Amazon Data Collection
Psychological Tricks Applied By Amazon On Its Pricing Strategies:
1. Concepting The Prices Lower Than Other Platforms
2. Grouping For Comparison
3. Preparing A Free Gift For Customers
4. Additional Clarification
5. Periodic Sale
6. Attaching Social Reviews
7. Summing Up The Cost With Number 9
Amazon's Pricing Strategy
Each platform has its pricing strategies built for better functioning. Pricing strategies are essential to finalize a cost of a particular product or service by considering many related aspects such as market conditions, demand, supply, etc. Amazon also has many strategies to use for its pricing model. The pricing model used by Amazon is to keep the prices as low as possible to achieve a higher buying rate. Based on this model, pricing strategies are planned.
Need Of Using Psychological Tricks By Amazon
Each seller needs to be ahead of others. For this purpose, they need to use tricks. One of the most useful methods is to apply psychological tricks. Psychological tricks are used to make customers believe that the deal cracked by them is truly a saving one. However, Psychological tricks are just a trick. There are many tricks one can apply for increasing sales.
Apart from each seller, Amazon as a whole also needs to be ahead of its competitive platforms. For this purpose, multiple psychological tricks are used by Amazon in its pricing strategy.
Basics of Amazon Data Collection
It is not a mystery now that all e-commerce platforms collect their users' data. This data is then used by the platforms to provide better services. The same is done by Amazon too. Amazon collects all inputted data from its users such as searches made on Amazon, filters applied, etc. This data is then combined with a few psychological tricks to make Amazon work as a customer store.
Psychological Tricks Applied By Amazon On Its Pricing Strategies:
Amazon is a continuously evolving platform. There are many chances for one trick to be applicable now and get an alternative after some time. This is mainly because the process is always applicable to improvement. Some of the psychological tricks are:
1. Concepting The Prices Lower Than Other Platforms
Amazon is known for its high-quality products at cheap rates. But is it factual or just a concept? Amazon sells its products at an average rate and not at low prices. However, the most trending products are sold at Lesser prices than on other platforms. This itself allows the manufacturers to sell a higher number of products at a minimum profit. On the contrary, some products have significantly higher prices on Amazon to indicate a better pricing strategy for customers.
Diksha Sinha
2. Grouping For Comparison
Comparison is the key to reaching a decision. Amazon understands this well. Amazon allows its users with three or more similar options of the same product with different packages. This allows the customers to make better choices from a single platform only, rather than going to other places for comparison of prices.
3. Preparing A Free Gift For Customers
Giving a free trial always has a better impression on customers. It can give them trust in the provided facility. Way Amazon allows its customers the facility of using Amazon Prime free of cost for 30 days. Once a customer starts using this facility, they will indirectly feel debted to Amazon. One can also try to purchase as much as possible in this period just for the sake of that membership. It can also make others purchase the facility once its free trial is completed.
Varad Kitey
4. Additional Clarification
There are many customers purchasing orders from Amazon as a gift. Giving out clear clarification about shipping details and days required for the order to arrive can ultimately speed up the process of purchasing. This can be because no one likes to receive the product after its needed date. This step gives an ultimatum to customers without the actual use of any warning.
Arijit Karan
5. Periodic Sale
Periodic sales work as a time bomb, the difference is that they work on the human mind. For any product available in the sale, with a limited time offer. Customers do not have the option of pondering much on the same thing. This forces the customers to make a quick decision. Hence, eventually, they can also lead to good sales once the psychology is well understood.
6. Attaching Social Reviews
Almost everyone goes to the comments section of Amazon before purchasing a product. This gives the impression of the received product. There are thousands of users purchasing products from Amazon. Each customer can't read all the given comments for a better understanding of the product. Hence, Amazon came up with a great solution of summarising all comments into one simple rating box. This allows quick and easy identification for customers. Higher the rating, the higher the number of customers willing to buy the product. Keeping the review and rating box on the product detail page is a great innovative step taken by Amazon.
7. Summing Up The Cost With Number 9
Also known as "Charm Pricing", it is considered one of the most successful strategies used by Amazon. In this method, the left number of cost is exchanged with the number "9". Price number ending in 99 or 9 number makes the Price looks quite lesser than the whole number of cost. It primarily deals with the thought process of the human mind. It is estimated that Nine ending prices are slightly lower than the one ending a process or whole numbers.
Conclusion
Amazon is known for its multiple services. It is one of the best examples to acknowledge e-commerce platforms. Amazon is always in a changing phase. Amazon has its share behind making great Strategies for its products to be on top. This takes the teamwork of both the manufacturers and Amazon together for increasing its rank in the eye of customers. Amazon is always known for its good quality products at less prices. To maintain this, Amazon takes the help of psychological tricks. Some of the psychological tricks have been explained above.
FAQs
Who is the CEO of Amazon?
The current CEO of Amazon is Andy Jassy.
When was Amazon Incorporated?
Amazon was incorporated in 1995.
What is the cost of Amazon Prime for one month?
Amazon Prime costs about Rs 179 per month.
Do retailers use any tricks to increase their sales?
Retailers on Amazon use a number of tricks in order to achieve a higher sale compared to their competitors.
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