Bargaining power of customers/buyers
The bargaining power of buyers is high. Amazon.com’s customers have the option of buying the products and services they desire on the hundreds of thousands of other retail web sites on the internet. If Amazon.com does not offer low enough prices to satisfy the customer then the customer will search the internet until they find that low price. Fortunately, since Amazon.com did not operate retail stores, the company had very little overhead costs and was able to pass these savings along to customers in the form of low prices. On top of low prices, Amazon.com set out to be one of the earth’s most customer-centric company with its excellent customer service tactics. Over the years, Amazon.com has diligently provided new customer service tactics so the customer is satisfied and does not make purchases elsewhere online