Online Shopping (November 28, 2011) – On Sunday, online retail giant Amazon.com (NASDAQ: AMZN) made a bold move after the U.S. retail market set a new post-Thanksgiving shopping record with a 16.4 percent increase from 2010 sales.
Amazon transformed a large portion of its site into a Cyber Monday Deals Week section for shoppers, an aggressive promotion that the online store will run until Saturday, December 3rd. The retailer went on the offensive as it saw a 50 percent increase in Black Friday sales from a year ago.
SEE: 3 tips for Cyber Monday deal seekers
Waging a ‘Price War’ >
Amazon’s Cyber Monday section displayed as much as 80 percent discounts for various household items, and offered its new Kindle Fire for 60 percent less than Apple’s iPad 2. Traditionally expensive products such as laptops and cameras were selling for 50 percent off their regular purchase price.
VIDEO: Tips for Cyber Monday shoppers
The post-Thanksgiving weekend saw a 24 percent jump in online sales in over 500 U.S. retailers, according to Coremetrics. (See left image) Amazon’s strategy to slash prices appears that the giant retailer is waging a price war on other major establishments such as Walmart, Best Buy, eBay and Apple. Amazon may also be trying to push out its massve accumulation of inventory during a recessionary period in the United States.
SEE: Top 5 online retailers for Cyber Monday 2011
Amazon’s Cyber Monday offering includes sections for Accessories, Toys and Holiday Items.
Record-setting weekend >
A record 226 million consumers shopped in stores and online between Thursday and Sunday, up from 212 million last year, according to the National Retail Federation. The four-day weekend also saw Americans spend $52.4 billion despite an unemployment rate of nine percent. Additionally, the average holiday shopper spent $398.62, up from $365.34 in 2010.
Steve Koenig, an analyst with the Consumer Electronics Association, told Investor’s Business Daily: “It has become obligatory for people, whenever they’re buying any type of device, to look up the price on Amazon.” Online spending this weekend saw a 26 percent increase from last year, according to comScore.
The company’s stock has taken a big hit in the past six weeks. AMZN (traded on Nasdaq) has gone from $246 per share on October 14 down to $182 as of November 25.
Copyright 2011 Marv Dumon. This material may not be published, rewritten or redistributed. All rights reserved.