It’s too difficult to buy direct, so AMAZON thrives

By
Real Estate Broker/Owner with Pareto Realty TN #251071
https://activerain.com/droplet/5k5g

I’ve been conducting an experiment.

“The logic of the experimental method is that it is a controlled environment which enables the scientist to measure precisely the effects of independent variables on dependent variables, thus establishing cause and effect relationships. This in turn enables them to make predictions about how the dependent variable will act in the future.” Source

It’s been argued that Amazon.com is so successful because of its amazing CONVENIENCE!

No matter what you’re seeking it’s likely buyable from Amazon.com.

My experience is that many prices are lower on Amazon than they would be in a retail store.

For a small fee (@$120/yr), any member can become a “Prime Member” which pays for itself very quickly in terms of FAST and FREE shipping and delivery along with lots of other perks (“Free” Audio Books and Music and Movies and likely many other things I don’t know about)

Amazon does what it does VERY well, because we can shop from our dens in our skivies and never leave the house, and the goods magically appear on our front stoop within hours of placing the order.

My experiment . . . I wondered if I were a “Brand Loyal” shopper, would I be able to go directly to the manufacturer’s website and give THEM my money (without whatever split they’re giving Amazon) and have a satisfactory experience?

I’m 30 days into the experiment, and the humbling truth is that no one has been able to come anywhere close to the Amazon experience. I’ve bought clothes and electronics and shoes and in every case have paid the same (or more) and have had deliveries in the range of 7-10 days for their versions of “Free Shipping and delivery” (In quotations because there’s a cost of inconvenience . . . It’s not free in terms of not knowing when or if the product will show up.)

So my conclusion is that the Brand Retailers are actually driving their customers AWAY from their own on-line stores and pushing them to Amazon. This is a dangerous game, because what happens is erosion of brand loyalty. When the Brand Loyal customer shops on Amazon, Amazon shows products “other people bought after viewing this product”.

It’s not the consumer’s fault brand loyalty is dying . . .

Look at YOUR business relative to your largest competitor.

What are you doing (or not doing) that’s potentially driving your loyal customers away from your business?

Think “Convenience” always!

How can you improve the “shipping and delivery” of your product or service?

All of this comes to mind for me now as I work on a complete re-write of the Pareto Realty Website.

I learned from my Amazon experiment and decided to “give more” by offering, in great detail, the entire process of Buying and Selling a house. This content will all be “consumable” within a few days from now.

Our focus for our Home Buying and Selling clients is on convenience. We know that, the more understanding our clients know of the process, the more efficient the process will be.

Continuous improvement EVERY day!

Published by Barry Owen

Strategist-CEO of Pareto Realty Real estate sales Professional Inviter-Facilitator-Practicer of Open Space Technology Opening safe space for people & organizations to self-organize around issues & opportunities BarryOwen.US Invite-Listen-Love

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Barry Owen

Founder
Principal Broker
Pareto Realty
Nashville, TN

615.502.2080
www.paretorealty.co  
Call me: 615-568-2123
email me: barryo@comcast.net

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Ambassador
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Liz and Bill Spear
RE/MAX Elite 513.520.5305 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

Barry, I've checked similar for products, and sometimes the same company is offering the product for less on Amazon than they do on their own website.

Frankly there are many things we buy now for the convenience.  With 14 indoor cats, we go through lot of kitty litter.  Periodically we have 10 40 lb bags delivered right to our garage door.  I don't have to go in the store, load up a cart, load up the car, unload the car and move them to where I need them.    We're basically the same on all our dog and cat food.  Amazon Subscribe and Save deliveries keep us stocked.

Convenience and value is there for us.  I don't have to spend days driving from store to store looking for something specific either.  A few keystrokes and I've got what I need being delivered soon. 

And we did similar earlier this year, a complete gut job on our Wordpress site with the goal of making it easier to use and more mobile friendly too.  Bill

Jul 13, 2019 03:22 PM #4
Ambassador
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Michelle Carr Crowe,Altas Just Call...408-252-8900!
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

It goes to show that bring easy to do business with is still valid. 

Jul 13, 2019 03:58 PM #5
Rainmaker
91,790
Dario Ferreira
Attleboro, MA
Internet Marketing

Amazon probably loses money with me due to the amount of stuff we buy every year. No way the Prime cost covers all the shipping.

Sometimes I feel bad ordering stuff. 

 

Jul 13, 2019 06:26 PM #6
Rainmaker
2,771,753
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Being easy to do business with is the only way to do business. Really no getting around that

Jul 13, 2019 09:28 PM #7
Rainmaker
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Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I’m sure Amazon will be fine in the long term on the sheer size of them and the efficiency. Dario Ferreira

Jul 13, 2019 09:30 PM #8
Rainmaker
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Kat Palmiotti
406-270-3667 (MT), 914-419-0270 (NY), Broker in NY with Grand Lux Realty and in MT with (coming soon!) - Kalispell, MT
The House Kat

And if you type in an item you want to purchase in an online search tool, Amazon is always at the top of the responses. And if you're an Amazon client, it's a one-click order. And their stuff arrives SO fast!

Amazon has come up with a service that is quick and easy - we need to do the same with our clients. Make everything easy!

Jul 14, 2019 03:08 AM #9
Rainer
147,254
Robin Wells
RAW Chimney Sweep and Inspections - Penetanguishene, ON
Giving Peace Of Mind One Chimney At A Time

For many thning Amazon is hard to beat the price.  But you do need to watch your items and prices as I have found the occasional item that is not exactly the same part/quality and there are some items sold that are not actually genuine items.  ( I know for example there were batteries being sold for Nikon cameras carrying the Nikon brand which were not genuie Nikon and did not in any way come close to the real thing in performance level - but price was way better ).   While Amazon has some good pricing be realistic, if it is too good to be true .. beware.   The shopping online at a good price and having at your door the next day is amazing though.  Thanks for post.

Jul 14, 2019 05:12 AM #10
Rainmaker
674,099
1~Laura Filip
1~Laura Filip Broker , Opening doors for All Seasons of Life - Whitesboro, TX
What can we do for you today?

Checking online is the way most will choose to go. Why pay more is the question one must ask when looking at what one is wanting to buy. 

Jul 14, 2019 10:36 AM #11
Rainmaker
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Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Amazing to participate in and rewarding too

Jul 14, 2019 11:08 AM #12
Rainmaker
351,714
Alan Brown
Coldwell Banker Montrose Colorado - Montrose, CO
29 Years of Real Estate Experience .

Definitely True.  Making it easy and giving great service will win everytime 

Jul 14, 2019 11:53 AM #13
Rainmaker
1,086,089
Margaret Goss
Baird & Warner Real Estate - Winnetka, IL
Chicago's North Shore & Winnetka Real Estate

Well you know the story: shop locally to buy something and they're out of the exact thing you need. The next place is a bit of a drive - forget it- just go home and order online.  It's too darn easy.

Good reminder to always provide the best service because in our business, the big e-places are not as efficient as Amazon - yet.

Jul 14, 2019 03:26 PM #14
Rainmaker
3,019,690
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Funny that I am the same way, i go to the name brand web site and i see a higher price and a huge minimum to get free shipping which is often 5-7 days. No one in teh corporate world is learning anything. NOw I just tell ALEXA what I want to buy.

Jul 14, 2019 03:33 PM #15
Rainmaker
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Bruce Hicks
Best Homes Hawaii - Honolulu, HI
Your Lifetime Friend/Helper!

Even if its the big Amaz Barry Owen, I try to see if they can be beat.  I check with ALIBABA and EBAY and others just in case.  Maybe 1/3 of the time I find that ALIBABA is lower priced, and so far, have been pleased.  Then again, last month, we just purchased an LG Extra Large Capacity washer and dryer, 6 months old for half the price of a new set.  Sellers just purcahsed a new house that already had a W/D.

Jul 14, 2019 04:43 PM #16
Rainmaker
1,838,240
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Local retail is in big trouble moving forward ! It’s hard enough to make a Profit without competition like this !!!

Jul 15, 2019 07:09 AM #17
Rainer
363,539
Dwight Puntigan
DRP Realty, LLC - Saint Peters, MO
Dwight Puntigan

Retail is changing again.  The county that I live in has a budget squeeze that is causing property taxes to rise dramatically that is caused by the lack of sales tax from on line sales.  I used to tell everyone to buy local and keep our money at home.  Shopping will always be a changing dynamic.  Sales tax is what allowed our community to grow and keep property tax low.  Then we used available space to create industrial parks which raised the tax base to support the need for more services (fire, water, roads, police, etc).  Amazon is saving the consumer dollars on retail, but I think in the long run the cost of living is going up.

Jul 15, 2019 08:44 AM #18
Rainmaker
3,829,120
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good evening Barry Owen ,

Its hard to beat Amazon and the convenience and price they provide for their customers. Time is money and I don't have the time or inclination to drive all over time for items when I can have it delivered to my doorstep.

Jul 15, 2019 07:14 PM #19
Rainmaker
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Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

I agree - convenience rules. I don't always find what I want on Amazon - and sometimes can't find what I want on line at all - but most of the time it sure beats driving 50 or 60 miles to then visit numerous stores in search of something.

Regarding your website revamp - I've been reading statistics and survey results, and found that aside from finding the right house, millenials identified "understanding the home buying process and steps" as the most difficult part of the home buying process. I'd expect that other generations agree.

Jul 15, 2019 10:17 PM #20
Rainmaker
1,329,087
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

I am in a constant battle with my desire to support local business and the convenience and cost advantage of buying from Amazon. Being in a relatively small market, there are many things I just can't get in the stores here so I'm forced to buy online. 

Jul 17, 2019 04:44 AM #21
Rainer
500,151
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Barry,

Good to keep in mind, but of course it is difficult for a single Realtor to compete with a company that has hundreds of employees. We have to sleep once in a while.

Jul 17, 2019 06:12 AM #22
Rainmaker
205,112
L. Scott Ferguson
Ask4Ferguson - Your House-SOLD Name in Real Estate - West Palm Beach, FL
Sunny Florida Real Estate Professional

What a great post Barry!  I'm sure the founders of these companies (especially the older ones that are dead and gone) are rolling over in their graves.

 

thanks for the post!

 

Blessings

 

Fergie

Jul 17, 2019 08:27 AM #23
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