True, but the reality of Amazon's success, while the company does not disclose overall ASPs, comes down to consistent growth by units. "In every single significant category of electronics in which we trade, our ASPs are from 20 to 100 percent higher than the industry averages as reported by NPD. And that's been very consistent for the last two years. If you think about the internet demographic, it's not a big surprise," he says.
"It does run contrary to one of the old notions about the web, that the web was completely a commodity space," he explains. "No question that price is important, but it's not a lowest common denominator marketplace. People who are shopping for big ticket items on the internet are better educated, higher average household income, more female than our industry. Our customer base skews more to female than the industry does. It's still a male business, but not as dominately as it is in brick and mortar."
Sadowski points to how online customers make different considerations than traditional shoppers. So Amazon has been bulking up its individual product pages, which explain each feature of, for instance, a digital camera, as well as how it can be used and other tutorial programs available both from the manufacturer and Amazon itself.