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 ...
Amazon.com is an On-line retailer of, originally, books. The company was established as a micro enterprise in the US in 1994. Since then it has enjoyed rapid expansion in all aspects of its operations, including business turnover, and a spectacular rise in share value since public floatation in 1997. New on-line sites based in Germany and UK and a distribution centre in Amsterdam were established in 1998 to cater for European markets. On August 30, 2000 Amzon.com launched its third site outside the US, Amazon.fr in France. Amazon.com sells only on-line and is essentially an information broker. It holds a relatively small, though increasing, inventory and outsources most aspects of its operations (but not IT). The key to its operation is to offer value added and sophisticated customised services, a continuously expanding catalogue of products in terms of both quantity and range, and deep discounts. Alliances and partnerships with publishers, other on-line retailers and technology providers are therefore strategic. The ambition of the company today is to become a premier general on-line retailer by leveraging on its existing brand and business model. Amazon.com: Business Overview
Amazon has grown to become the largest internet-based retailer in the world by total sales. It began as primarily an online bookstore and soon began to sell more and more electronics and then over time began to sell pretty much anything. In 1998, Amazon earned about 0.6 billion dollars, it held a steady growth from 1998-2006 (“Amazon.com”). From
Launched by Jeff Bezos, the Amazon.com website started in 1995 and is today considered as one of the most prominent retail website on the internet with a record turnover of US$ 14.87 billion in 2007. Jeff Bezos’s intention was to create an internet based company with the most dedicated product portfolio on the internet where customers could find anything they might want. Amazon’s success is based on technology, services and products (Jens et al., 2003).
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
Technology has played a huge role in how companies today conduct business with their consumers. Over the past few decades there has been a shift in business models and strategies because of the emerging innovation in technology. One of these innovation are e-commerce, businesses that use e-commerce can now see a major difference in sales and revenue. Amazon has taken the idea of e-commerce and turned it into a successful and profitable business. Amazon Company developed a brilliant strategy for emerging into an already competitive market. This entails the revision of an existing concept. Unlike major companies like Apple, Microsoft that invented new products and services, Amazon did not need to create a whole new product but to create a better business model system that can be used in the future. This helped their rise to fame by taking over an existing idea but improving it to match consumer needs and wants. Overall companies will need to develop better business strategies to be able to evolve into e-commerce industry moving forward.
In 1999 Bezos invested huge amounts of money to help Amazon become a more efficient company. He built warehouses in the United States to store inventory, in order to prevent under stocking during the holidays and also offer a greater selection of products that the companies distributors could not. Along with inventory, the company invested in logistics, such as controlling the supply chain through the same technology they used to create their unique website. Also they began to customize their website to individual customers. They stored information about the customers, which in turn made it easier for them to purchase goods on their website, which then reduced threat of the customer going to Amazon's competitors instead. Amazon wants the easiest and most enjoyable experience for customers when they visit the site. Bezos realized, that consumers need to have a good sense of security when purchasing products online, so the company invested in infrastructure and created an integrated system of customer service operations and payment processes.
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
Amazon is a growing and trending brand, giving consumers the unique shopping experience they have always wanted. The company that was started by 1999 man of the year, Jeff Bezos, has taken 44 percent market share in online sales and purchases. (http://bloomreach.com/2015/10/survey-amazon-is-burying-the-competiton-in-search/) That makes consumers more inclined to search for products through Amazon, before the well-known search engine powerhouse, Google. The Seattle, Washington based company was started in 1995. During the well-anticipated start-up, the company’s focus was on book sales online. Over time, Amazon has set many trends in Consumer Behavior, expanding products across every product pool imaginable. "Amazon.com puts the customer
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.
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
In addition to offering a wide range of products, Amazon also offers certain services to specific customers to tailor to their needs, such as the Amazon Web Services (AWS) whereas enterprises and content creators can rest Amazon’s servers (10 cents per hour per server). This gives the customers great flexibility to be able to terminate the contact whenever they please.
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.