Essay On Benefits Of Amazon

Benefits for Amazon –

From its modest beginnings as the "World 's Largest Bookstore," till date Amazon has dominated many segments of retailing, to the extent that it has helped cause the extinction of a number of brick-and-mortar retailers.

Amazon 's extended marketplace of individual vendors, to the fulfillment and warehousing services it offers to its partners, to its very convenient returns policy, to Prime itself, Amazon has constantly innovated both horizontally (across product areas and business policies) and vertically (over supply chain and distribution).

Amazon is taking efforts with every measure possible to make the Amazon name synonymous with retail, whether it 's online or offline.

Amazon’s intensive growth strategy to develop

Earnings as a Platform-

Amazon already provides a service called “Fulfilled by Amazon” on their online portal for vendors to sell their own goods. The amount of product sales and recognition they get through Amazon; it is of an absolute importance to be a partner with Amazon in some way.

Almost all retailers in grocery business still use traditional checkouts, including grocers who make use of self-checkout registers. Many retail brands do not have the financial resources to make huge technological investment required for such a futuristic upgrade. That’s where Amazon Go pays off. Once built fully up to certain sophistication Amazon can sell this technology to other retailers. This enables Amazon to work as a technology platform providing this services to several other grocery stores.

The proposition for other retailers is even more tempting— they will be saving the labor costs which is the biggest component of the store as well as improve efficiency. In the times when labor costs are increasing and labor availability is low, this becomes a twofold benefits package for retailers.

Network effects

All these things are tightly coupled, synchronous computing models working on Amazon cloud built with the help of AWS i.e. Amazon web services. Also for image processing Amazon uses “Amazon rekognition”. Traditional grocery stores don’t have funds to develop this type of technology on their own but they can but Amazon can license this to them. That’s what Amazon can encash by providing Amazon Go as a packaged service. In this times, a lot of vendors/suppliers realize Amazon is absolutely a must — a channel they have to be on, even if it comes at the expense of their margins. This all creates a network effect in favor to Amazon. Amazon’s website, their web services (cloud), distribution and fulfillment centers, their tie-ups with bigger brands everything gets a push with this.

This is all part of Amazon’s intensive growth strategy to become the logistics backbone of both online and offline retail market. More brick and mortar locations make it faster and easier for the company to deliver grocery through its Amazon Fresh brand. And as more consumers begin to turn to Amazon for groceries and everyday supplies, the lower Amazon can bring its prices. The closer and deeper these layers interlace, the more likely a consumer is to subscribe to Amazon Prime, which is the bundle of services provided by Amazon raking in the profits. A whole network