E-Commerce: Amazon

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enjoyable experience.

3. Competitive analysis of e-commerce of the company.

Without being said, the most competitive advantage, yet also a challenge, that Amazon has is that it facilitates both wholesale as well as retailer platform, hence it would not attract solely consumers or business firms like many E-commerce companies; thus boosting the sale on Amazon.com. On the other hand, Amazon has really reliable reviews by customers system of the product. Apart from product information, consumer reviews form a powerful argument that helps convince customers they are making the right purchase. Amazon even invites some of its users to become Amazon Vine reviewers, although the Amazon Vine reviewer club is only open to a small percentage of elite viewers.

In addition, Amazon has an advanced transaction processing system. Amazon.com Incorporated has a patent on its one-click ordering technology, personalized shopping services and easy to use card transaction, e-mail communication with customers and direct shipping around the world. Customer with previously activated functionality can order items clicking only one button without fulfilling order form, therefore, the purchasing process can be much faster. Amazon offers many payment methods which enables customers to choose whichever that is convenient for them: credit card, COD, gift cards...

Furthermore, compared to other E-commerce companies like EBay or Alibaba, Amazon manages quality of the products better. When buying product from other companies, for example, EBay, the goods are shipped directly from sellers to buyers and the companies are only middlemen, therefore companies cannot ensure if the goods are authentic or fake, high quality or not. Whereas, goods purchased on Amazon.com are mostly shipped from Amazon, so obviously Amazon can check their goods before selling to the customers. In fact, as a buyer, I myself find out that buying product from Amazon makes me feel safer.

4. Reason why e-commerce of Amazon has been successful

Attracting visitors who are already looking for the product is an important key to building a profitable online store. Amazon offer an attractive, easy-to-use customer interface. Using push strategy, it creates an online mall or catalog of many products in which individual products dominate each page. Amazon also make suggestions to customer based on their previous purchases and webpage viewing. It also has a fast and reliable delivery from vast, fully automated warehouses, first located in strategic spots in the US but increasingly worldwide.

Yet, the most important one reason for the success of Amazon is: Amazon is obsessed with making its customers happy. Regardless of line of business, Amazon keeps some things consistent: Its value proposition remains price and convenience no matter the product or service, and low prices can be sustained by ensuring its customer relationships continue to be mostly automated and self-service. Amazon can even instantly trade off short-term profits for the chance to engender long-term customer loyalty.

References:

Amazon Case Study Analysis. (n.d.). Retrieved November 29, 2015, from http://www.ecommerce-digest.com/amazon-case-study.html

The Difference Between Amazon And Alibaba’s Business Models. (n.d.). Retrieved from http://www.investopedia.com/articles/investing/061215/difference-between-amazon-and-alibabas-business-models.asp

Paul D. (2015, April). Say hello to Amazon Business, good-bye to AmazonSupply. Retrieved from https://www.internetretailer.com/2015/04/27/say-hello-amazon-business-good-bye-amazonsupply