Amazon introduced a new option Tuesday called “Make an Offer,” a program that allows customers to bid for lower prices on more than 150,000 products sold by third-party vendors. The products range from fine art to rare coins, from sports memorabilia to entertainment collectibles.
The company noted that it will expand to hundreds of thousands of items next year.
Although some may say that it’s just like other auction websites, Amazon explained that the negotiation with the sellers are private – it’s a 1:1 process – and customers will never pay more than the listed price. Sellers will have 72 hours to respond to the bid, and if they reject the offer then the buyers have another 72 hours to respond with a counteroffer.
The Seattle-based website said that this move is being celebrated by vendors who wish to remain competitive on the marketplace and generate greater sales. Of course, as many analysts purport, this is clearly a measure to compete with the likes of eBay, especially during the holiday season. As some may remember, Amazon first tried to be an auction site in the early days of the Internet in 1999, but failed to compete with eBay. Now, it has an established marketplace that accounts for 40 percent of its quarterly revenues.
Indeed, the “Make an Offer” feature could definitely enhance Amazon’s low-cost image, something that has diminished in recent months. According to the Wall Street Journal, a 360pi and Wells Fargo survey found that Wal-Mart and Target had 10 percent and five percent, respectively, lower prices than Amazon.
“The new ‘Make an Offer’ experience is a game-changer for Amazon customers looking for great prices on one-of-a-kind items, and for sellers looking to communicate and negotiate directly with customers in an online marketplace environment just like they do normally in their own physical store or gallery,” said Peter Faricy, VP for Amazon Marketplace, in a statement.
“In a recent survey of our sellers, nearly half of the respondents told us that the ability to negotiate prices with customers would be important to drive more sales on Amazon. ‘Make an Offer’ delivers that functionality and makes customers feel confident they are getting an item they want at the lowest price possible.”
This latest addition to its business model comes as the company announced last week the introduction of Amazon Elements, a service that offers premium everyday products. It initiated the feature by selling its own brand of baby diapers and wipes – more will be unveiled over the course of the next several months.
“Our obsession with customers and drive to continuously innovate on their behalf has led us to create Amazon Elements. The two things customers told us they want are premium products that meet their high standards, and access to information so they can make informed decisions, Amazon Elements offers both,” said Sunny Jain, Amazon.com Consumables Vice President, in a statement. “We’ve leveraged our strengths in technology to bring customers an unprecedented level of information about these products, all with just the click of a button. We’re excited to offer Amazon Prime members added selection, beginning with diapers and baby wipes.”
The Elements line of products, which will consist of an abundance of consumer information, are available to Prime subscribers, a $99 annual fee service that gives users access to a digital music and video library, free two-day shipping and unlimited photo storage.
