10 THREATS TO AMAZON

1. A Threat To Online Security

Increased cybercrime can jeopardise a company's security network infrastructure and
jeopardise a customer's loyalty. There is growing worry about online purchasing because of the
risk of identity theft and hacking, leaving customers' data vulnerable. As a result, Amazon's
efforts in the areas of internet security, data management, and customer support are critical.

2. Aggressive Pricing Strategy

Because of its aggressive price approach, the firm has been sued by publishers and
competitors in the retail industry. Even Amazon, the e-commerce behemoth, is not immune to
price wars. It has a significant influence on Amazon's profit margins. As a result, Amazon has
gotten a lot of negative press and has faced legal challenges for unlawful tax benefits.

3. Aggressive Competition between Online and Offline Firms.

One of Amazon's greatest challenges continues to be competition. Customers' loyalty may be
bolstered by expanding physical stores. Some customers want to check things out before
purchasing them, and they are wary about buying or exchanging personal information via the
internet. Local internet shops, which are considered to be more nimble and user-friendly than
Amazon's tactics, pose a significant threat to the brand.

4.Private Cloud
NSA Anxiety & Privacy
Customization

5. Regional low cost online retailers

Local internet merchants confront substantial competition from Amazon, which is more flexible
and dynamic than its mammoth model. This implies that, in pursuing its worldwide plan, the firm
cannot lose sight of its local market circumstances.

6. Low Consumer Interest

Customer engagement with social media posts is low. Etsy, a rival, is vying for the same e-
commerce user base as Amazon. On social media, customers choose which firms pique their
attention the most. People can't be compelled to follow, and if the material isn't compelling
enough, they won't comment or "like" it.

7. Negative Impressions
The perception of ineptitude in the industry. The more business Amazon conducts, the more
angry customers will go to social media to vent their frustrations. When it comes to social media,
there are no barriers to setting up an account and few barriers to customers sharing whatever
comes to mind.

8. Buyers power & Switching

Customers visibly have lower switching costs; they instantly switch from one online shopping
website to another.
The products are mostly the same apart from a few brands. Hence, ‘standing out’ is tough to
say the least.

9. Stringent Government Regulations

It is hard to sustain losses and keep doing business if the government regulations keep
hindering the business.

The Indian government also exercises strict control and monitoring of FDI and funds from
foreign investors into Indian firms. This led to many legal issues and operational problems for
Flipkart(now owned by US-based Walmart).
Also, in wake of Indo-China tensions, proliferation of fake goods on online retail sites has been
met with stringent measures.

10. Pandemic Leader

During the outbreak of Covid-19 online retail grew massively in lockdown, and Amazon reaped
huge profits.
It created such a huge competitive threat against the opponent companies who are either falling
apart or missing profitability.