Difference Between Best Buy and Amazon

Edited by Diffzy | Updated on: September 13, 2022

       

Difference Between Best Buy and Amazon Difference Between Best Buy and Amazon

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Introduction

Our society has benefited greatly from the internet. To mention a few benefits, it boosted the transmission of knowledge, improved connection, and created millions of jobs in various industries. The internet, on the other hand, has had some unfavourable effects. One of these, according to others, is that internet shopping has become so popular that it has driven actual brick-and-mortar stores to close.

Amazon and Best Buy are the most influential companies globally. They are two of the most well-known corporations, employing millions of people in the United States and other world regions. These companies are in the United States and have a global presence due to their popularity. The difference is that Amazon is an e-commerce company, whereas Best Buy is a retail store.

Still, online sellers have been able to outcompete physical merchants and provide lower pricing than attract customers because of the lower overheads associated with not paying for labour and rent on physical sites. It has either directly driven customers away from stores or forced them to compete on price, resulting in ever-shrinking profit margins until they become unprofitable. When you consider changing purchasing patterns and the convenience of having an item delivered to your door, it's simple to see why more and more people are going online to purchase. However, this is not the whole picture; some retailers have successfully crossed the digital divide. Best Buy was on the verge of closing its doors due to pressure from online retailer Amazon.

Best Buy Vs Amazon

The stock of Best Buy has been rising, and customers appear to be pleased with the company's service. This year, in-store sales have increased by around 2%. And according to CEO Hubert Joly, the company's Blue Shirt salespeople are getting good marks and closing transactions. Best Buy's price matches if you need an item at the lowest price right away. However, each user is limited to one item, and you must present verification of the lowest price from a small selection of vendors. Meanwhile, more people are shopping online. According to the American Customer Happiness Index, overall customer satisfaction for online shopping has risen for the second year, with Amazon leading the pack among e-tailers.

Amazon's distinctive one-click purchasing experience makes it impossible to ignore, but Best Buy is working to bridge the gap. Since last year, Best Buy has witnessed a 15% rise in online sales, thanks to an improved search feature, the opportunity to pick up items in-store, and a quicker checkout process. It isn't easy to compete with Amazon's double-digit growth rates. Still, brick-and-mortar stores aren't going away anytime soon, and Amazon may even go the boutique retail route with small boutique retail locations where they can showcase their unique products like the Kindle Fire.

Difference Between Best Buy And Amazon in Tabular Form

Table: Best Buy Vs Amazon
Comparision
Amazon
Best Buy
Industry type
E-commerce, cloud computing, computer hardware, AI
Retail industry
Founder and
CEO
Jeff Bezos
Richard Schulze and James wheeler
Year started
1994
1966
Revenue
177 billion
43 billion
Headquarters
Washington
Minnesota
Platform
Digital
Brick and mortar
Accessibility
More accessible
Less accessible
Optimism
More optimistic
 Less optimistic
Signature products
Books
Audio products and consumer electronics
Small kitchen appliances sales
Fewer sales
More sales

What Is Best Buy?

Best Buy is a famous American electronics retailer in the United States, Mexico, and Canada. The company sells various products, including mobile phones, digital cameras, video games, music, and home appliances like washing machines and refrigerators, both in-store and online. Best Buy's Geek Squad brand also offers computer and other device repair services in its locations. As Americans upgraded their home offices for a new regimen of remote work, the company was one of the few to survive the epidemic, posting a 144 per cent gain in US online sales and an 8.3 per cent boost in total sales in 2020.

Best Buy Co., Inc. It was rated 72nd in the Fortune 500's 2018 ranking of the country's largest firms based on total revenue. On August 22, 1966, Richard Schulze and James Wheeler launched this retail enterprise. Initially, it was solely focused on audio things, and its store was dubbed "Sound of Music." In 1983, it was renamed Best Buy, and its marketing focused primarily on consumer electronics. Redline Entertainment, Musicland Stores Corporation, Future Shop, and Five Star are just a few of its properties. Finance is the most crucial sector in this speciality retail industry. Hubert Joly, the Chairman and CEO, is based in Richfield, Minnesota.

Every financial year, millions of people pass through the doors of its superstore chains across the country. However, as previously stated, the retailer was experiencing financial difficulties. However, in 2012, a new strategy turned the company's fortunes around. Here's how they went about it.

First and foremost, people.

One of the primary distinctions between online and offline purchasing is that you interact with people. This is a significant differentiator in the face of internet merchants, yet employee satisfaction at Best Buy was low. In 2012, the new CEO spent a significant amount of time listening to employees and developing plans to improve their job happiness. Employee happiness resulted in more extraordinary customer service, which increased the likelihood of returning to business.

Strengthen your weak regions.

One of the most vital areas of opportunity that the corporation was overlooking was a practice known as showrooming.' A customer visits a store to inspect and try an expensive item before purchasing it online for a lower price. Best Buy took advantage of this by implementing a price matching mechanism. While the rivalry has lowered product margins, this has been compensated by new cooperation agreements with electronics businesses to display their products.

Create a community by communicating with others.

Compared to Amazon, Best Buy built a stronger bond with its customers. They had a Geek Squad, a team of specifically qualified technical professionals who could assist consumers with their problems. They took it a step further and developed the In-Home Advisor program. An advisor would visit a customer's home and assist them with their problems using this method. Best Buy was able to achieve success and defy the trend of many other online retailers by focusing on the assets of physical stores.

Benefits Of Using Best Buy For Business

  • Signing up is simple.

The registration process is simple. It means one will spend less time fussing with your account and more time getting back to work.

  • Deals of the day

With this account, you can obtain special prices on electronics. You will be able to save money as a result of this.

  • Flexibility

With a Best Buy for Business account, you have many options. You can customize your purchases by setting transaction limits and selecting payment alternatives and appropriate invoices for you and your company.

  • Support and Guidance

Installing and configuring electronics can be difficult. Having the Geek Squad assist you can save you time and frustration. It'll be the same if your electronics break or start acting up. You'll be glad you have an expert on hand to assist you with the problem.

The Disadvantages Of Best Buy For Business

  • It isn't a credit card for businesses.

We've already discussed the benefits of business credit cards, so we should point you that a Best Buy Company card is not the same as a business credit card. Because you can only use your account to buy Best Buy products, the rewards you can earn are limited.

  • Not suitable for use with a business credit card

You can't use your corporate credit card at Best Buy, which ties into the previous con. Depending on the benefits and cashback you have on your current business credit cards, this could mean you don't save as much money as you think. It's possible that you won't need to sign up if you already have an excellent business credit card.

  • Isn't a Direct Way to Increase Your Capital

While purchasing accounts such as Best Buy for Business can be beneficial, keep in mind that they will not provide you with additional funds for outside tasks. While you may save a few dollars, you will need to rely on outside sources of finance, such as a small company loan, for larger tasks such as upgrading or expanding your current workspace. Camino Financial is the best option if you need a small business loan to build your company.

What Is Amazon?

Amazon is an extensive online retailer with a market valuation of more than $268 billion US dollars as of June 2018. Amazon allows individuals and business firms to sell and display things for sale online and be an online store. It is the world's gigantic internet retailer by revenue, with  $177 billion in 2017. Amazon is one of the most vital online marketplaces, with users worldwide using it. The site is available in various nations and languages. The Amazon Kindle and the Amazon app store are two of its most popular items. Finally, Amazon provides business and individual software and infrastructure solutions.

Jeff Bezos founded Amazon in 1994 in Seattle, Washington, and it began as a simple online retailer. Amazon has grown from meagre beginnings to become the world's biggest online e-commerce store and one of the most influential companies. Not only has it extended its product and service offerings, but it has also entered the streaming video industry, the cloud computing marketplace, and, most recently, the banking marketplace.

Amazon is not just the world's most valuable internet store but its most valuable retailer overall, having eclipsed Wal-Mart in 2015. It is also the world's fourth most valuable firm, behind Alphabet, Apple, and Microsoft. Amazon has often chosen a low-profit margin approach to new product offerings to gain market dominance. This strategy has worked wonders for them, as they have come to dominate many of their competing markets.

Amazon has a storefront website for more than a dozen nations and ships to almost every country. It also houses the retail websites of companies like Sears Canada, Marks & Spencer, and Lacoste. It also owns more than 40 subsidiary businesses, including Zappos, Diapers.com, Goodreads, IMDb, etc. Selling on Amazon has several benefits and drawbacks. It is also essential to make decisions on various options.

Advantages of Amazon

  1. There are around 240 million Amazon customers in the world.
  2. Many potential buyers are only interested in things available on Amazon.
  3. From the first minute, there was a lot of "Traffic" without needing to pay for more advertising.
  4. You do not need to have your own Shop Software.
  5. You may outsource your complete shipment logistics and save money by selecting the "Shipping via Amazon" (FBA) option.
  6. Amazon's affiliate network is well-established.

Disadvantages of Amazon

  • Amazon Sales Charges range from 7% to 20%, depending on the product category.
  • If the option "Shipping via Amazon" is selected, shipping expenses are included in the selling price.
  • When several suppliers of the same goods, a price war can ensue.
  • Possibilities to directly modify the appearance of a product may be limited.
  • Amazon may be a competition.
  • Amazon's Dependency

Key Differences Between Best Buy And Amazon in Points

  • Various reviews and periodicals have praised Amazon and Best Buy as well-known public retail corporations.
  • Amazon, together with Facebook, Apple, and Google, is recognized as one of technology's "4 Horsemen" or "Big 4" companies.
  • Best Buy Co., Inc. It was rated 72nd on the Fortune 500 list of America's most prominent firms in 2018 based on total revenue.
  • Best Buy is a retailer, but Amazon is a multi-faceted company that includes e-commerce, cloud computing, computer hardware, and artificial intelligence.
  • Jeff Bezos is the CEO of Amazon, whereas Hubert Joly is the CEO of Best Buy.
  • Best Buy employs fewer employees than Amazon.
  • Amazon was founded after Best Buy.
  • Best Buy's revenue is lower than Amazon's.
  • Amazon earns more money than Best Buy.
  • Best Buy is headquartered in Richfield, Minnesota, while Amazon is situated in Seattle, Washington.
  • Compared to Best Buy, Amazon has a greater global reach.
  • Best Buy's trademark products are music and consumer electronics, whereas Amazon's signature products are books.
  • Amazon's prospects appear to be brighter than those of Best Buy.
  • The loss of Trump's net worth has been connected to Amazon but not to Best Buy.

Conclusion

Finally, Amazon Co. And Best Buy are two well-known international corporations. While Amazon is a well-known firm, its accessibility and dynamic traits have made it a global phenomenon. On the other hand, Best Buy operates in the United States and the neighbouring countries of Canada and Mexico. Compared to Best Buy, Amazon has become the most popular e-commerce website globally and has more room for expansion. Even though these world-class enterprises are known for their signature products and retail lines, future entrepreneurs who aspire to share the list with famous business people like Jeff Bezos, James Wheeler, and Richard Schulze could look to these companies for inspiration.

If you need your item right now, Greatest Buy is where to go because you can try it out in the shop and get the best price. If you want to read reviews before purchasing an item and shop in one place, Amazon is just a click away.

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