Amazon has designed future purchasing plans as a natural process, and selling loss-making promotional products at the front end may generate substantial sustainable revenue at the back end. Sell a product with one-time loss and design a simple and effective plan to enable users to purchase continuously in the future, so as to make more profits. Amazon is estimated to have lost more than $500 million on Kindle devices, but has made more than $2 billion in profits on e-books, music, film/television programs, advertising and applications.
It is not an ideal choice for every enterprise or product to sell a loss promotion product at the front end. There are two situations that are very suitable for this strategy,
Scenario 1, Your loss promotion products require future renewals from your customers to work properly (e.g. the shavers need to buy shaver’s blades or the printers need to buy ink).
Scenario 2, Your goal is to attract new customers into your store, and you think they will buy more after experiencing the product (for example, Black Friday sales attract many new buyers, and milk and eggs attract people into the store, prompting them to buy high-profit goods on your platform or store).Click Here For More.
Tip 3 Charitable plans feedback to social and profit
Work with branches that are highly relevant to the audience you want to attract to build a two-way collaboration: they promote you through the pre-made marketing materials you provide; you promote them to customers on your website.
For Amazon, charities promoted their products through pre-made Banner ads and social posts; Amazon promoted the charity program by popping up dialogs on its product pages.
Amazon Smile Foundation, founded by Amazon, aims to allow the customers to do charity while shopping. Such philanthropic activities have other benefits, such as making customers feel more meaningful to buy on Amazon, encouraging more people to buy products from Amazon, and positive attitudes towards Amazon.