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1. In your own words, summarize the central premise of the related article and the connection between them.
The connection between the two articles is that both Amazon and Gap are trying to continue a growing business. They both want to market more consumers to visit amazon site for an ongoing shopping experiences for clients, and Gap trying to entice more shoppers to come into their retail stores. Being that Amazon is open to new merchant’s world wide of all merchandise sale, they are also opening opportunities for brand name retailers. Amazon is always trying to gain more merchants to sell and more visitors to become clients. As in Gap because their sales have been going down, they are open to other ways in bringing up their sales and so they have thought about selling their line in Amazon to extend their sales further.
2. What are the key metrics used to evaluate a retailer’s performance? Summarize Gap’s recent performance on those metrics.
The key metrics used to evaluate a retailer’s performance is the number of clients visiting the store, average sales, net revenue and financial statement. Depending on the amount of clientele at a retailer’s site or physical stores would let us know whether the store is productive or not. For Gap, researcher found that Gap’s brand has lost their importance with recent millennials and the organizations of other clothing stores is overloading the attention toward Gap. At the end of the day, the client visits at Gap has become less for millennials between the ages of twenty to thirty years old which have discovered other fashionable stores. The substitutes of Gap items are stores like American Eagle, H&M, Banana Republic, and so on. An actual sale means how much cash or credit clients spend at the checkout.
3. What reasons would you use to support Gap selling its products on Amazon?
My reasons of why I would use to support Gap selling its products on Amazon is because Gap revenues has declined yearly rate of 5% and gross margin has also declined. Although Amazon may boost sales for Gap, but the major problem would be Amazon using their content for their own benefit. On the positive note Gap is still open to discovering options because of its declining business. So, being that Amazon is the largest e-commerce site in the U.S. with the top transaction in retail sales to produce progressively. Listing its merchandise products on Amazon could up sale and bring much more growth for Gap.
4. What reasons would you use to oppose Gap selling its products on Amazon?
There are few reasons why I would oppose Gap selling its products on Amazon. First reason would be how retailers would lose total control of the shopper experience. Secondly sellers may not have control of consumer reach nor customer data. Even though many shoppers visit Amazon and can help Gap gross up their sales, Gap would lose on valuable shopper data and share revenue. Amazon is the type of business that only cares about adding more apparel shoppers to its site to continue their own growth in the e-commerce system.
5. If Gap were to decide to sell its products on Amazon, what are 2-3 tactics it could use to leverage its Amazon partnership to drive consumer traffic to its physical stores?
If Gap were to decide to sell its products on Amazon, one of their tactics that could use to leverage its Amazon partnership to drive consumer traffic to its physical stores would be first to go through customer question and answer section in the Amazon page. Looking through customer question and answer would give Gap an idea what style is on demand from clients. Having a social media available to advertise Gap new fashion when answering customer question and answer can help bring forth more clients to appear in person in the stores, especially if they want the item at the very moment rather waiting for the shipping date. Secondly would be to polish Amazon product listing, because it only takes a few seconds to whether to buy a product by prioritizing Gap product listing, to optimization. Product optimization is eliminating any barriers to understanding and giving Gap customers what they want, when they want it, in a format they can understand. And lastly, best of all is adding sponsored product ads, Amazon has a platform that allows merchants to get exposure for Gap products on Amazon.
6. In your own words, explain what Amazon Web Services is.
An Amazon Web Services is a protected cloud service area platform. Amazon Web Services offers processing control, database stockpiling, content transportation and other usefulness to enable organizations to scale and develop. Also, can investigate how a large number of clients are at present utilizing AWS cloud items and answers for manufacture complex applications with expanded adaptability, flexibility and firm quality.