Question

Should Peck allow Gap Inc.’s brands to be sold on Amazon? Why or Why not? What Opportunities and Challenges does this plan present? If Gap sells through Amazon, should the company be a wholesaler or a third party seller? Why?

Answer 1

Answer: Yes Peck should allow the Gap’s brand to be sold on Amazon as this will help Gap to reach a large number of potential customers without investing heavily in the marketing activities and creating a distribution network. This will offer a number of opportunities for the company like acquiring new customer and take advantage of the huge customer base of Amazon across the globe. But at the same time it will create new challenges like the company will have a limited control over the sales and marketing on Amazon and maintaining inventory for such a high demand.

Gap will be a third party seller as it will be an independent entity that will supply its own goods to the customers through Amazon. While the Wholesaler purchases goods from the manufacturer and then sells them on Amazon.