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Amazon Supply and Demand

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    The product or service that I am choosing from my everyday life would hands down have to be my use of the Amazon website. In my everyday life I have found a use for the Amazon website, from ordering Christmas presents, birthday presents and down to body wash that I could have just as easily picked up at the local grocery store or retail store.

    I believe that most individuals chose to shop online with amazon not only for the free 2-day delivery but, also to avoid the inconvenience of traffic and others in the stores. I personally use Amazon due to the fact that with my Amazon Prim membership not only do I receive the 2-day delivery on almost all the products they provide but, the addition to their music and tv streaming applications that come with it.

    What factors influence the supply and demand for Amazon product and usage. Well, according to china brands the supply and demand market has a significant impact on product prices. When the market is pursuing a new product, it is easy to cause a situation of short supply, and the price will increase. However, when the product is listed for a period and widely distributed by the merchants online and offline, the buyer’s choice tends to be diversified, the seller’s profit is diluted, and the price will decrease.

    At the same time, the development speed of new products in each industry is also very fast. When new products with similar functions appear, the attractiveness of old products to buyers will also decrease, and price cuts are inevitable (Lynne, 2018). In my own words when a new product that is a high demand by the consumer is released Amazon will more than likely have it for sale at the lowest price between all the competitors to corner the market. This in turn will improve Amazon profits and revenue due to easily accessible products.

    To comprehend what the equilibrium price for amazon products are we must first understand what equilibrium price is. This is the middle meeting ground where the market price of the good supplied is equal to the demand. The supply and demand prices for Amazon goods are generally stable with the price that meets the demand.

    I have noticed a few times where I have an item in my virtual cart that has increased or decreased depending on how many of the items are left by the sellers as well. The fact that Amazon has its own products that are comparable to name brand keeps their prices at a steady constant. They also have cornered the market by owning their own supply and delivery services as well this keep the price down because it in turn cuts out the middleman and makes it 100% profit for the company.

    What changes in the supply and demand for this product do I foresee in the near future? I believe that the changes will depend closely on the companies that sell their product using Amazon. Most of the companies already know each other and are competing with one another for the consumer. They also must understand and consider that now competing against Amazon as well. Amazon itself is creating and making its own version of the products that the companies using the site are trying to sell but, Amazon can produce the same item for less and guarantee deliver from one company in as little as one day.

    According to CIO review, in today’s business environment, changes in the marketplace are swift, sudden, and may not follow the historical pattern. We must look at patterns of consumer behaviors and other attributes to try to not only predict the sell but understand why they purchased it in the first place (Wilson,2020). Just like Wilson said the pattern of consumer purchases will be the ultimate decision on how the demand and the need to continue a product or service.

    This even applies to mega companies like Amazon, the customer will inevitably determine if the companies will succeed or fail. One of the main driving factors that I can see from Amazon is it wants to provide the best product at the lowest price with the most reliable means of delivery possible. I believe that the use of Amazon will continue due to its reliability, ease of use and little to no cost delivery. We as a society look for the best product at the lowest price and want it in the most convenient way possible.


    1. Lynne, R. (2018, September 9). 7 Factors for Amazon Pricing and How to Price Amazon Products. Retrieved February 14, 2020, from
    2. Wilson, E. (2020). Amazon Effect: Driving New Opportunities and Challenges in Demand Forecasting. Retrieved February 14, 2020, from

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