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PedalSpark is a small maker of high-end electric bicycles, and the firm considers an opportunity of whether it is suitable to start selling its products on Amazon. It is not an easy question, and specific research is required to get insight into the topic. That is why the given paper will present two questions that should be answered before moving ahead. The first issue is whether Amazon offers significant benefits for such companies, and the second one refers to whether e-bikes are popular on Amazon.
Thus, one should begin by identifying the advantages that Amazon can have. Firstly, Breslin (2020) mentions that it refers to a global base of buyers. There is no doubt that when a company enters Amazon, its customer base increases significantly. Secondly, Amazon provides companies with a developed infrastructure, which makes distributing products more convenient for both buyers and sellers (Breslin, 2020). In addition to that, it is reasonable to consider how requested e-bikes are on Amazon. According to Taylor (2019), these products are relatively popular there, which can be proved by numerous discounts offered on e-bikes in 2019.
The information above has presented essential information on whether it is rational for PedalSpark to start selling on Amazon. Furthermore, additional research should precede the process of making the final decision. In this case, it is necessary to identify whether Amazon offers significant drawbacks to direct-to-consumer companies and what margins will be implied. Answers to these questions will help the company solve the issue under consideration. As far as my personal opinion is requested, I would recommend selling bikes on Amazon and controlling the process. If everything is good, the company under consideration will face essential benefits. If the attempt results in problems or losses for PedalSpark, it will be necessary for the company to move back to its e-commerce platform.
Breslin, S. (2020). Benefits of selling on Amazon instead of your own store. Repricer Express. Web.
Taylor, T. (2019). Amazon and Walmart slash prices on two electric bicycles ahead of Prime Day. Digital Trends. Web.
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