AMAZON

ECONOMICS BEHIND AMAZON

1. Economies Of Scale :
Amazon delivers a large amount of products to the customers in a larger scale, so the cost per the delivery of each product will decreases.

2. Economies Of Scope :
Amazon which operates in many business like AWS, PRIME, ZOOPOS, Amazon BASICS.
All these will base on each other which ultimately decreases the total cost.

3. Consumer Surplus :
Amazon almost sells every products at a very low price which means that customers will pay less than what they actually pays.

4. Price Discrimination :
Amazon Web services have a various products which are suitable for different consumers but the functional use was same.

5. Oligopoly :
Companies operating in online are very few and these few companies are responsible for online sales.
In America Amazon is accountable for 50% of the online sales.