PESTLE ANALYSIS-AMAZON

Political


With the government encouraging make in India campaigns and promoting atmanirbhar Bharat.
The budget for the year is incorporative of several schemes and initiatives that will help businesses and ecommerce websites operate more easily. schemes such as “Ease of Doing Business 2.0” and “One nation, one registration” programs and “Digital Ecosystem for Skilling and Livelihood” (DESH-Stack) portal which will aid business operations with measures such as:
• Digitization for improved transparency and ease of use
• Interlinking of the ASEEM (Atmanirbhar Skilled Employee-Employer Mapping) Udyam, e-Shram and National Career Service (NCS) portals to create connected databases and improve efficiency

Economic

The amazon effect


The Amazon effect refers to the impact created by the online, eCommerce, or digital marketplace on the traditional brick and mortar business model that is the result of the change in shopping patterns, customer expectations, and the industry’s competitive landscape. As online shopping and eCommerce grow in popularity, it has hurt many traditional businesses that are forced to compete with the online marketplace with only a physical location.
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Amazon has enabled small businesses to reach millions of customers across India by providing an ecosystem for them to use. They have been empowered to offer a superlative customer experience while helping these local sellers increase their product exposure, expert endorsements along with product reviews. It has also created a space that can foster these sellers’ unique products and services. .he world.”

Technological


Amazon is virtually in every industry from food delivery, content streaming, e commerce. It is truly an unrivalled monopoly. Amazon has had several fantastic technological innovations in the last decade.
Fire tv
Fire TV is Amazon’s response to similar products from competitors, such as Apple TV and Roku. The product is gobbling up market share quickly. By mid-2019 it had more than 34 million active users.4 The streaming industry measures market share separately for the box and the stick. In the U.S., Amazon’s Fire TV box had a 28.5% share of the market but 57% of the market for sticks.4Its versatility has garnered rave reviews from industry analysts: A Fire TV box streams live TV and allows users to watch hundreds of queued shows and movies. It is also a popular and well-received gaming device.
Amazon Alexa
While the voice-assisted technology isn’t entirely there yet, Amazon’s voice-responding virtual assistant is helping to propel it forward. With the Amazon Echo, Tap, and Dot, Amazon is getting people accustomed to using this technology—and trying to grab their share of the market (versus competitors like Google and Apple). Amazon’s voice assistant, Alexa, is amazing at doing Amazon things (placing orders, finding music, etc.). And she can hear and respond to voice commands at a normal volume from across a noisy room, which is pretty impressive.

Social


the social impact of e-commerce can be measured by satisfaction and trust.
Social media playing a key role in the dynamic in the website consumer relationship. Eith the nuber of people using the internet increasing day by day. the effect social media has particularly on the millennial and gen z is astonishing. Various social media platforms have a strong impact on lifestyles of people today. Facebook, Quicker, Snapdeal, Amazon, Pinterest, and Instagram greatly affect consumers in their online shopping habits with SEO and SMO, and strategies like pay per click advertising whereby they reach the target audience effectively.
Compared to 39.1% of Millennials, 64.2 percent of Gen Z said they draw purchasing inspiration from Instagram. Ethics, sustainability, and equality are equally important to these younger generations. For example, 41% of Gen Z indicated they’d pay more for sustainable apparel, while 73.9 percent of Millennials believe it’s extremely or somewhat essential for firms to demonstrate their support for diversity and equality.

  • Over 75% of people are shopping at least once a month online.
  • 45% of millennials admitted they prefer buying online because they can run comparisons on products and prices
  • Eight out of 10 millennials never buy anything without first reading a review
  • 95.1% of millennials admit to impulse shopping
  • 83% of Millennials are not concerned about security while online shopping
  • 40% of millennials have used voice search before making a purchase online
  • More than 53% of millennials prefer to seek out details online rather than talk to store staff when they are in a shop

Social media is also a big influence on their purchase decisions. In particular, 64.2% of Gen Z noted that they get shopping inspiration from Instagram, compared to 39.1% of Millennials. These younger generations also care a great deal about ethics, sustainability, and equality. For example, 41% of Gen Z said they’d pay more for sustainable fashion, while 73.9% of Millennials think it’s very or fairly important that brands show that they are pro-diversity and pro-equality

Environmental

Recycling

Amazon is committed to reducing our environmental footprint through recycling initiatives in our own operations and partnerships that support the development of recycling infrastructure across the industry.
Carbon footprint
Amazon’s corporate carbon footprint quantifies the total greenhouse gas emissions attributed to our direct and indirect operational activities. We measure our total impact on the climate, map the largest activities contributing to this impact, and develop meaningful carbon reduction strategies to reach net-zero carbon emissions across our business by 2040.
Renewable Energy
As part of our goal to reach net-zero carbon by 2040, Amazon is on a path to powering our operations with 100% renewable energy by 2025—five years ahead of our original target of 2030. In 2020, we became the world’s largest corporate purchaser of renewable energy, reaching 65% renewable energy across our business.
The Climate Pledge
Amazon is committed to building a sustainable business for our customers and the planet. In 2019, Amazon co-founded The Climate Pledge—a commitment to be net-zero carbon across our business by 2040, 10 years ahead of the Paris Agreement.


legal


In June 2021 by the Department of Consumer Affairs came up with the Consumer Protection (E-Commerce) (Amendment) Rules, 2021, placing some stringent rules on ecommerce websites. Amazon as an ecommerce
Some of the rules are
Use of marketplace entity’s name or brand for advertising or sale of products or services: Marketplaces may not use their name or brand to represent that their offers are from the marketplace itself.
Misuse of a dominating market position: An e-commerce business may not abuse its dominant market position in any market. fallback liability: In the event that a seller on a marketplace platform fails to provide goods or services, resulting in a loss to the customer, the marketplace will be held liable.
Advertising that are deceptive: An e-commerce platform should not allow misleading advertisements. Falsely portraying a product or service, (ii) falsely promising or misleading regarding nature are all examples of deceptive advertising under the Act.