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Amazon as e commerce
Amazon ecommerce advantages
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Benefits of selling on amazon include the ability to add new products to the Amazon catalog, have Amazon handle customer service, shipping, and fulfillment with Fulfillment by Amazon service, use bulk listing and reporting tools from Amazon Marketplace Web Service, inventory enabled capability for professionals businesses, and customized shipping rates for products other than Books, Music, Video, DVDs, Software, and Video Games; at a cost of $39.99/month + other selling fees (Amazon Services LLC, 2014). By combining selling on Amazon with Fulfillment by Amazon, Kelly Lester, CEO of EasyLunchboxes, was able to rapidly expand her business with a 400% increase in sales in less than a year (Lester , 2014).
Amazon Services works with businesses of all sizes to provide products and solutions within the scope of Amazon’s ingenuity. For example, businesses can reach millions of Amazon shoppers by selling on the Amazon Marketplace and with Amazon’s fulfillment services, Amazon will manage shipping and provide trusted customer service. Or, if a business already has a website, it can advertise ...
Associates would link customers to Amazon for order fulfillment and the originating web site would earn a commission from the sale (”Amazon.com, Inc. History”, n.d.). Within two years, Amazon had 60,000 websites signed up as Associates. By 1998 Amazon had become one of the largest booksellers in the US with 2.5 million titles and a customer list of over 2.26 million people. This same year they decided to launch their music store with 125,000 music titles and added toys and electronics in 1999. Even with all this growth, Amazon was still operating in losses into 2001 when sales hit 3.12 billion. When profits finally started to arrive in the fourth quarter of 2001, Bezos had finally proven that his market share driven approach could lead towards
Amazon.com’s US operation business model is based on “sell all, carry few”. Amazon offers consumers a wide selection of products while keeping inventories at low levels. A major interest for Amazon in the US is optimization of netwo...
It's important to realize that first and foremost Amazon.com is a technology company. Over the past years, Amazon.com grew from an online retailer into a platform on which more than 1 million active retail partners worldwide do business. Behind Amazon.com's successful evolution from retailer to technology platform is its SOA (service-oriented architecture), which broke new technological ground and proved that SOAs can deliver on their promises.
Jeff Bezo’s began Amazon in his garage in July 1995 with three Sun workstations setting on wooden doors for tables and extension cords running from everywhere (Academy of Achievement, 2010). Right from the beginning he was a visionary leaving his well paying job as a senior vice president with D. E. Shaw to begin Amazon.com (Academy of Achievement, 2010). Being the visionary that he is he saw an opportunity prompted by the huge growth rate of internet use in a single year and ran with it never looking back. Jeff realized that the internet had “no real commerce to speak of” so he began researching possible businesses (Academy of Achievement, 2010). “After reviewing 20 mail order businesses and deciding which could be conducted more efficiently over the internet than by traditional means he decided on books” (Academy of Achievement, 2010). He thought books were perfect because attempting to send huge catalogs for all the available books would be expensive and cumbersome, but an online resource database that was easy to navigate would provide customers with easy access and a single point from which to shop. “In 30 days, with no press, Amazon had sold books in all 50 states and 45 foreign countries, obviously by the success of Amazon he was right (Academy of Achievement, 2010). In a case study written by Javad Kargar called “Amazon.com in 2003” he stated that “Amazon's online store was a big hit, with about $5 million in the first year of operations” (2004). This huge success so quickly would have confirmed for Jeff that his idea was viable and drove him to continue to strive for more. Jeff Bezo’s charismatic-visionary leadership is the key to his and Amazon’s success.
In addition to Amazon great physical networking presence with all of their warehouses they also have a great delivery network that allows businesses to sell their goods through Amazon. Having many warehouses spread out helps getting products delivered quicker and cheaper than many smaller businesses can. Smaller businesses sell their goods via consignment with Amazon. Selling their goods using Amazons delivery and website services helps keep cost for small businesses down despite the fees paid to
In the first stage Amazon’s main objective was to create a virtual bookshop, where customers could have more choices than any physical bookshop in the world, but also, he did not want to spend time and money on building warehouses and deal with inventory b...
Amazon has been able to maintain sustainable competitive advantage based on three operational strategies. These are low cost-leadership, customer differentiation and focus strategies. Low cost-leadership is pursued by Amazon by differentiating itself primarily on the basis of price. By offering low prices to customers Amazon ensures its future success. Partially modifying the costs of lowering prices over time through achieving higher sales volumes, negotiating better terms with suppliers, and achieving better operating efficiencies. Amazon makes sure that it offers the same quality products as other companies at a considerably cheaper price. Another strategy that Amazon has is its fast delivery service and there are many delivery services that one can choose from. With Amazon Prime, there are certain, but many products that have free two-day shipping. Also, with Amazon Prime, there are many offers specifically for people that have Amazon Prime. For example,
Amazon has recorded a magnificent success in its business throughout the years that it has been in operation. It has attracted almost all people to use it when necessary. Amazon has built its success in business methodically and slowly. Amazon has made much success because of its ability to read market trends and diversify its operations. It started as an online book selling company. However, it changed its operations and started selling other products. Currently, many large retail shops use Amazon to host and power their websites, for instance, sears and virgin megastores. Amazon now attracts over fifty million visitors in a period of one month. Amazon has tried to make their services fit each individual user. It has based its services on the end user. It has shipping discounts, customer product reviews and a credit card with bonuses. It also has prime membership, product forums and 1-click ordering system among other services. The company has tried to make a remarkable experience for customers and visitors (Thomas, 2006).
Amazon.com creates value for its customers by offering customers broad array of products to select from through their website and ensuring timely delivery of products to exhibit high level of commitment towards their business and customers
This statement is still driving Amazon to provide the best for their customers. It is impressive when a business is able to fulfill their original mission statement, while being an E-business that is demanded to provide and keep up with the most current wants and desires of the consumer, especially as Amazon began and still is highly driven from popular department of electronic related products. Amazon began by selling their first book, progressing to 1-Click Shopping experience, then to creating their symbol “AMZN” on the NASDAQ, while launching the Music Store, Advantage Program, and opening numerous Fulfillment and Customer Service Center within and outside of the United States (History of Innovation). Next, let’s look at how Amazon uses all these characteristics to be a financially
Jeffrey Bezos, the founder and current CEO of Amazon.com, initially started the company as an online bookstore in 1994. Within several months, Amazon spread its operation to all 50 states and abroad. Presently, customers from over 45 countries buy at Amazon. Over a short period of time, the company expanded sales to electronics, video games, software, CDs, DVDs, MP3 downloads, food, furniture, apparel, jewelry, and toys. Today, the company even produces its own products such as the Kindle series. Also, Amazon.com is one of the major providers of cloud computing services. Currently, the company is the largest global online retailer responsible for 20% of online retail market share.
Amazon is number eight on Interbrand’s 2016 ranking, which is up 33% from last year to 50 billion 338 million.1 This year they plan on reaching 72.8 billion.2 Amazon is an e-commerce company offering cloud based services as well. It is an extremely customer-centric company and the largest internet based retail company in the country.3 Amazon is about innovation and bringing new technology and new ideas to their customers. With all their successes, there has been a misstep or two that has kept the company grounded. This is shown for the most part with the up and down of the stock market but overall has steadily climbed over the past year.4 Consumer confidence is a great indicator of these ups and downs.
From the consumer side, Amazon provides services like Amazon Prime, which delivers free two-day shipping on retail purchases, on-demand video streaming and a free access to the Kindle library, everything for an annual
Amazon model initially offered customers access to massive selection without the needs to incur cost, time and stress of opening warehouses and stores and the needs for inventory handling. Amazon realized to ensure customers get a pleasant experience and Amazon acquire its inventory at reasonable prices, they need to be in control of the transaction process from beginning to the end through operating the business from their own warehouses.
EBay is a website marketer favored worldwide. A seller who wants to trade has to list the item on eBay mostly anything from cars, books, spare parts to antiques. The seller chooses whether to agree to a bid for the item on the list or offers the items at a fixed price. In an auction, the seller opens a specified price that remains on the site for a couple of days when buyers bid on the item and when the listing ends the buyer with the higher bids wins. The first buyer willing to pay the seller's price gets the item. Selling on the website comes in various forms and this website is favored by countries