Executive Summary
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Amazon Marketplace is a key revenue driver within Amazon’s hybrid business model.
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This project analyses pricing trends, product variety, discounts, and customer reviews to generate data-driven insights.
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Key focus areas include - ensuring transparent pricing, diverse product range, and effective review monitoring.
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Addressing these challenges helps improve customer trust, satisfaction, and loyalty.
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Failure to address them risks higher customer churn and loss of competitive edge in the fast-growing e-commerce market.
About the Business
Amazon operates on a hybrid business model that includes direct retail sales through online and physical stores (linear model) and the Amazon Marketplace (platform model).
Amazon’s direct retail sales contributed $247 billion (38.7% of total revenue), while its Marketplace via Third-Party Seller Services added $156.1 billion (24.5%).
Amazon follows a highly customer-centric approach, focusing on building strong, long-term relationships with its customers. To support this, the company maintains multiple communication channels — including customer reviews and comments on the platform — to gather feedback and understand user experiences.
According to a study by Sachan and Dr. Malik published (2021), 72% of participants expressed high satisfaction with Amazon.
This attitude influences all aspects of the company's operations, from its website design to its emphasis on excellent customer service.
Industry Trends
The global e-commerce market is rapidly evolving with immense growth potential. The size of the market in 2024 was approximately USD 26.8 trillion, and as per estimates, it will be USD 214.5 trillion in 2033.
India’s e-commerce market is projected to experience significant growth and is expected to reach USD 325 billion by 2030 with a CAGR of 21%.
Consumers today enjoy an 'always-on' shopping experience, with 70% multitasking while they shop across multiple devices.
This behaviour emphasizes the importance of convenience and trust throughout the buying journey, which ensures platforms like Amazon Marketplace address by maintaining transparent pricing and actively monitoring customer reviews and ratings to ensure satisfaction.
Problem Statement
As Amazon Marketplace grows, maintaining its customer-centric promise becomes more challenging.
Key issues include –
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Monitoring customer reviews and ratings to identify product-related issues and improve quality.
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Transparency in discounts and maintaining fair pricing practices to build trust.
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Wide and diverse product assortment across categories to meet evolving customer needs
This project analyses data on pricing, discounts, product range, and customer feedback to identify areas for improving trust, satisfaction, and loyalty.
Hypothetical Business Scenario
I am a business analyst acting as a consultant to Amazon Marketplace.
The objective is to leverage data-driven insights to support Amazon’s customer-centric philosophy.
This includes analyzing customer ratings, discount transparency, and product variety to identify opportunities for improving satisfaction, loyalty, and the overall customer experience.
Consequences of Unaddressed Challenges
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Inefficient monitoring of customer reviews may lead to decreased product quality and lost customer trust.
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Lack of transparency in pricing and discounts can damage Amazon’s brand reputation and customer confidence.
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Inadequate product variety risks losing customers to competitors offering broader selections.
These factors collectively contribute to higher customer churn and fewer repeat purchases. Failure to address these challenges undermines Amazon’s core mission of being Earth’s most customer-centric company.