Competition between Blue Nile and Amazon.com

• Amazon.com makes only a 15 percent margin on the jewelry products it sells. This enables Amazon.com to sell diamond earrings for $1,000 (traditional jewelers charge $1,700 for the same). Do you think that Amazon.com will succeed in selling this type of jewelry as Blue Nile did in selling expensive engagement rings?
• Competition between Blue Nile and Amazon.com will continue to increase. In your opinion, which one will win (visit their Web sites and see how they sell jewelry)?

I believe that Amazon.com cannot compare to the Blue Nile level, because Blue Nile categorize itself as a diamond seller while Amazon.com is a market place where it offer different department giving that idea that does not concentrate only on one division. Amazon.com it very extract when it comes to order diamonds, such as giving more information’s for securities purposes, sometimes it’s really hard to convince the customers that they are really getting pure-diamonds or gems stones. While on the other hand on my personal point of view I would feel more comfortable to place an order in a website that only focus on that type of service, such as Blue Nile. Even though as customers we always look for lower prices and in that case Amazon.com has affordable and very competitive prices in the market vs. other jewelry stores. But, Blue Neil has quality for those that don’t mind spending a little more for original cuts diamonds. In Conclusion I believe that Amazon.com will win because now a day’s people are coming less interesting in diamonds than many years ago, while Blue Nile will try to succeed to other competitors in the market.