...growth, many analysts have one eye on the future and they are saying, "We've got a long way to go." A quick glimpse at the data promises much more evolution in the years to come. Forrester Research, for example, predicted American firms alone would sell US$316 billion in goods and services via the Web by 2010. That figure would more than double 2004's online spending to account for some 12 percent of all retail sales, up from about 7 percent today. History of E-Commerce One of the most popular activities on the Web is shopping. It has much allure in it — you can shop at your leisure, anytime, and in your pajamas. Literally anyone can have their pages built to display their specific goods and services. History of ecommerce dates back to the invention of the very old notion of "sell and buy", electricity, cables, computers,...
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...Amazon Business Model Due date- March 17,2013 Amazon.com, Inc. is a multinational electronic commerce company, initially started off as an online bookstore, but soon diversified, selling DVDs, CDs, MP3 downloads, software, video games, electronics, apparel, furniture, food, toys, and jewelry. An American entrepreneur named Jeffrey Preston Bezos founded it in 1994. It has employees over or around 28,300. It is the global leader in e-commerce. It is mostly known for its wide range of products, and has a worldwide network of fulfillment. Amazon’s mission statement is “to leverage technology and the expertise of our invaluable employees to provide our customers with the best shopping experience on the Internet”. The company’s vision is to be earth’s most customer centric company; to build a place where people can come to find and discover anything they might want to buy online. Because of such mission statement and vision, the company’s values are customer obsession, innovation, bias of action, ownership, high hiring bar and frugality. I have been a amazon user for almost five years and one of the biggest advantage of shopping in amazon, is that they offer low price products everyday and its not just on some specific products, they apply low price on the entire product range. I am aware that Amazon.com Inc. invests in a lot new businesses and new product, like Zappos and imbd, by spending money on brand awareness and getting new customers. So basically Amazon.com Inc. strategy is...
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...Amazon.com’s E-Business Model Pros and Cons of Amazon’s Growth and Diversification of Business and Specialization Amazon.com is a digital shop, open around the clock. Consumers are able to access amazon.com literally at any moment, on any given day, due to its real-time optimization. Amazon provides unlimited reach to the worldwide market, with no substantial boundaries. Amazon has unlimited inventory and is just as diverse in categories which helps promote a speedy inventory turnover. Their focus on low prices, a diverse selection and customer convenience has proven to be successful. Amazon also has endured one of the fastest growths in the internet’s history reaching almost 3 billion dollar in sales within the first five years. Amazon is considered an ecommerce giant and has over 30, 000 thousand employees and brings in more than 30 million in revenues annually, topping Barnes & Nobles and Borders. Amazon owns many companies consumers use every day not knowing they are owned by such. Zappos, fabric.com, pets.com and audible.com are each owned by Amazon. Furthermore, entities of Amazon often used are AmazonBasics: amazon branded electronic products, AmazonFresh: sells and deliveries groceries, AmazonStudios: online social movie studio and AmazonWarehouseDeals: offers discounts on refurbished products. Amazon also facilitates many other businesses, such as providing web services for companies like: Netflix, Etsy, Papaya and Reddit, to name a few. So not only is Amazon...
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...advantages. Some of these investments will pay off, others will not, and we will have learned another valuable lesson in either case. — Jeff Bezos, 1997 Letter to Shareholders As Fishmonger Ryan Reese skillfully filleted a fresh rainbow trout at Seattle’s Pike Place Market one morning in late 2012, the usual mix of tourists and locals gathered to admire his prowess. The iconic downtown market’s appealing array of fresh and specialty foods drew daily crowds eager to admire its vendors' showmanship and buy their wares. But the trout wasn't for any of them. Ryan's customer was miles away on Mercer Island. Within hours AmazonFresh, the grocery subsidiary of Amazon.com, would deliver the fish, which she'd ordered online, right to her doorstep.1 AmazonFresh had spent five years testing and refining its business model since its launch in August 2007. The challenges were numerous; no other online grocer had yet succeeded on a national scale. Amazon typically allowed new businesses only a short time to achieve profitability before shutting down failed attempts. But CEO Jeff Bezos and his management team also made allowances for enterprises they believed would succeed in the long term. Known for being “stubborn on vision and flexible on details,” Amazon was also famously resistant to Wall Street’s quarterly earnings pressures.2 Grocery was an especially attractive sector because it was both the largest single U.S....
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...e All-inSuit One Ecommerce G IN ONE SOLUTION FOR RUNN AN ONLINE BUSINESS! CR M INVENTORY MA N A G E M E N T E COMMERC E P L AT F O R M ORDER MANAGEMENT SYSTEM Feeling Stranded by Multiple Ecommerce Systems? There’s A Better Way! Finally, there’s an integrated ecommerce solution designed from the ground up to help your web business take flight. We call it GoECart 360™ — the all-in-one retail suite that combines an advanced ecommerce platform with multi-channel order management, enterprise-class inventor y and warehouse management, fulfillment, CRM, and so much more. Experience the easiest to use ecommerce software. GoECart 360 is easy to learn and simple to use. This reduces rampup time, lowers training costs, and prevents end user frustration. Point-and-click administration is delivered via the same familiar web-based administration panel accessible from anywhere on the planet. At GoECart, we call this revolutionary usability. Our customers call it extraordinary. Sell more™ merchandise over any channel. You get ALL of the bells and whistles you see on top Internet sites, so you can deliver that Amazon.com-like user experience to your customers. Sell via web storefront, microsites, call centers, and leading marketplaces like Amazon.com® and eBay ®. Improve decision-making with an intelligent 360-degree view of your business. Customizable reports, robust interactive dashboards and powerful web analytics options provide you with increased visibility...
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...E-COMMERCE ------------------------------------------------- TYPES OF E-COMMERCE The aim of this report is to search for an example of a website that falls under each of the four main types of e-commerce found in unit 1 of the BIU syllabus based module and to describe the website and to explain why it falls under that type of e-commerce. To begin with, electronic commerce is the systematic process of buying and selling of goods and services using an electronic mode primarily the internet. There are different commerce transactions that happen in our daily life, and those commerce transactions have been categorized in different types. As per unit 1 of the BIU syllabus based module, there are four main types of e-commerce (Mbotwa 2014). These are Business-to-Business e-Commerce, Business-to-Consumer e-Commerce, Consumer-to-Business e-Commerce and Consumer-to-Consumer e-commerce. Firstly, Business-to-Business e-Commerce. This refers to electronic commerce transactions between two businesses where both the buyer and seller are business owners. This could be between a manufacture and a wholesaler or a wholesaler and a retailer (Mbotwa 2014). It can be treated in other way like, wholesalers supplying goods to retailers or a distributor in one country can ask for goods in bulk from the exporter in other company through the internet. In this form both the buyer and seller are business entities. An example of B2B website is Hp.com. On Hp.com website, a wholesaler...
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...Amazon.com Have you ever purchased any product on the Internet, used the Internet to collect information or data, or played computer games on the Internet? You must agree that it is fast, easy, and enjoyable. The Internet has been a part of our daily life for several years now. In addition, in the business world, a new business model, E-business and E-commerce, has appeared for several years According to Ali, there are two main types of E-commerce: B2B and B2C (2000). One is business to business (B2B). This means that enterprises use the Internet to transact or trade between business operations and their partners. Another is business to consumer (B2C). In other words, enterprises provide products, support good, and services to the customers on the Internet. Amazon.com is a famous Internet retail company in E-commerce. Its business includes B2B and B2C. Amazon.com is a company that sells all kinds of books and most recently music through their website at discounted prices. It was founded by Jeff Bezos and began taking orders in July of 1995(Derie). Since then, Amazon has acquired five businesses that range from virtual database technology to videos while expanding to the European market. Its massive amount of sales can be attributed to its low competitive prices and ease of shopping conveniently from home. The business level of Amazon.com is cost leadership. Best-selling books are sold at a 30 to 40 percent discount and other books are discounted at 10 percent (Bade). Amazon...
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...An e-Business Analysis of Amazon Timothy Harpe BUS 352 Ins. Victor Olufeso December 15, 2013 Becoming one of the most powerful E-tailers on the planet is Amazon.com; in a matter of 18 years becoming one of the most powerful E-tailers in the world, while not producing a product. Amazon.com is an American e-commerce company based in Seattle, Washington. Founded in 1994, by Jeff Bezos started a business out of his garage in Bellevue, Washington, which he incorporated under the name Cadabra.com. Then in 1995, Cadabra became Amazon.com, continuing as an online bookstore before diversifying its product lines by adding VHSs, DVDs, music CDs, MP3s, computer software, video games, electronics, apparel, furniture, food, toys, and more to his portfolio of items to sell. “Amazon also issued guidance for the fourth quarter of 2013, saying that net sales are expected to be between $23.5 billion and $26.5 billion, representing growth of 10% to 25% over the fourth quarter of 2012,” (McGrath, 2013) with no end in sight. Amazon has a business model that is based on the buy, sale and transfer or shipment of goods to anywhere in the world, as of 2013 it is working well. With the explosion of the World Wide Web, or internet, Jeff Bezos capitalized on the book buying and reading industry, with aggressive ideas of improving the way to deliver this product. Although Amazon does not buy a lot of products, rather they allow the seller store their product in the Amazon warehouse hubs...
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...Amazon.com runs a Linux based system. In 2005 it was said that Amazon.com had the three largest Linux databases in the world. Amazon has a data warehouse that consists of 28 Hewlett Packard servers. The warehouse is divided into four functions, which are query, historical data, and ETL. Pulling data from one source integrating it with another is a primary database function. Amazon.com gathers customer’s personal information and they use all of the information gathered to respond to requests, customize future shopping, and improve the Amazon store, communication. Amazon.com has differentiated its website by using specific information technologies, for example, Amazon uses personalization technologies to recommend different products to customers based on the products they have purchased in the past. Amazon.com also has what is called the one-click system for speedy checkout. With this system, customers can enter credit card numbers and addresses once, and in future visits all they have to do is simply click once to make a purchase, all of this is done without having to enter any information more than once. Amazon also offers what they are calling Amazon Web Services, also known as AWS. Amazon Web Services is a collection of remote computing services, that when put together make up a cloud computing platform. This computing platform is offered over the Internet by Amazon.com. AWS provides all different types of companies, big and small, with infrastructure web services platform...
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...The Impact of the Internet and New Technologies on the Book Retail and Publishing Industries in the United States Jim Overman, Internet/Technical Coordinator Consortium Book Sales & Distribution St. Paul, Minnesota, USA Size of the Book Market in the United States In the year 2000, the size of the book market in the United States was approximately $25.5 thousand million. Of that figure, internet sales represented approximately 5%. Two Models of Internet Book Retaililng Since the beginning of the retail of books on the internet in the early 1990s, two primary business models have emerged: the strictly virtual bookstore and the “clicks and mortar” combination of virtual and physical stores. These models are also found in other retail ecommerce. Strictly Virtual Model The strictly virtual bookstore is a store that only exists on the internet. The best known of these stores is Amazon.com, which began selling books on the internet in 1995. The advantages of an entirely virtual bookstore include: 1) The ability to offer a wider selection of books. Large bookstore in the United States, including the chains, will often carry between 35,00-100,000. Amazon, however, carries nearly all books in print (available), approximately 2 million. 2) The ability to sell books in any location and 24 hours per day. 3) Lower operating cost. A virtual bookstore does not have to build or rent store space. Also virtual bookstore do not require as many employees. However, some of these cost savings are offset...
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... Amazon’s brand personality is that they are a fast, friendly, innovative company that can be trusted. All of these traits make Amazon the website where most customers choose to do their shopping. Also, Amazon makes their customers their top priority and successfully appeals to their values, knowledge, and interests. Amazon’s two loyalty programs of Amazon Prime and Amazon Visa Rewards Card provide many benefits to their members and make shopping on their website quick and easy. Overall, Amazon has developed into one of the most important and successful companies in the world today. Background image of page 4 Porter’s Five Forces analysis In order to get a broader picture of the competitive structure of Amazon.com e-business the author use Porter’s five forces model. According to Porter awareness of these five factors allow a company to gain a position which is more profitable and less vulnerable to attack. Threat of New Entrants. Most of the industries in which Amazon operates possess low barriers to entry. Except for modest capital requirements, there are no specific skills or permits required...
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...E-Tailing Abstract For e-commerce, or e-business “…the e stands for ‘electronic networks’ and describes the application of electronic network technology” which can include the internet or other electronic data. “E-commerce covers outward-facing processes that touch customers, suppliers and external partners, including sales, marketing, order taking, delivery, customer service, purchasing of raw materials and supplies for production and procurement of indirect operating-expense items, such as office supplies. It involves new business models and the potential to gain new revenue or lose some existing revenue to new competitors. It's ambitious but relatively easy to implement because it involves…suppliers or intermediaries such as Web-based marketplaces; and integration of technology with modestly redesigned processes for order handling, purchasing or customer service. E-business includes e-commerce but also covers internal processes such as production, inventory management, product development, risk management, finance, knowledge management and human resources.” (Bartels, 2000) Electronic-network retailing, or e-tailing, is how a firm retails or sells its products or services via the internet. It is a subset of e-commerce and includes many of the multifaceted layers of e-business. This essay will give an overview on the current state of e-tailing. It will examine the critical success factors, advantages and drawbacks, size, growth trends, and areas of consumer products...
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...com’s E-Business Model Lauren Hunt Dr. Kim Anthony Business Enterprise 7/24/2011 1. Discuss the pros and cons of Amazon’s growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently. 2. Determine the impact if Amazon.com had split up and become a family of brands (for example, “Amazon” for books, “Supertoys” for toys, etc.), each with a different public face but all run by the same parent company. 3. Determine if it would be possible for Barnes and Noble or Borders to extend their markets in the same way that Amazon.com has. Explain your rationale. This would be difficult, due to the fact that there is some confusion amongst many analysts now on the fact that Amazon sells many of the products that can be sold from businesses to other companies to be provided for the consumers from beauty products to software even grocery items. Barnes and Nobles along with Borders are known for being in the book business, the confusion that would arise with Barnes and Nobles or Borders selling food or toys, and auto parts, would not be in the best interest for the companies. Amazon according to the website offers an array of products, “Books, movies, digital readers, computers, consumer electronics, pet needs, groceries, health and beauty aids, toys, clothing, jewelry, shoes, sporting goods, tools, automotive, hardware, building supply, and more.” (Amazon.com, 2011) The two...
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...Amazon.com Evolution Business Information Systems/219 October 25, 2010 Amazon.com Evolution With an untold amount of online retailers fighting for a piece of the consumer dollar, only one has risen to the top to become the world’s largest online retailer. With a diverse set of services to support its online retailing, Amazon is in direct competition with two of the largest Internet and software companies, but by using its vast informational resources Amazon has continued its success in internet based business. Many analysts and consumers wonder if Amazon.com is moving away from its core competency of being an online retailer. When you first look at Amazon.com starting from a book seller and trying to become a service provider your initial answer would be yes however, according to Jeff Bezos, the founder of Amazon.com his vision of the company was to create a place you could buy anything and everything. Bezos decided to start selling books because of the low cost, and he did it online because a computer allows you to sort, search and organize a wide selection. Between 1998 and 1999, Amazon.com went from books to music, DVDs/video, toys, electronics, home improvement, software, and games. As sales rise they continue to adventure out to a broader spectrum to bring more to their consumers. Amazon.com always focused on selling products to others and now was ready to launch other services. For instance auctions, search engines, simple storage...
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...Amazon.com’s E-Business Model Introduction In this paper we will explore the rise of a mega business empire, Amazon.com. From the beginning of just books sales to the current diversified online store and why it has gained world wide recognized by branching out to other sales items besides books. As CEO Bezos stated in their 2010 annual report, “ Amazon.com opened its virtual doors on the World Wide Web in July of 1995 and offers Earth’s Biggest Selection. We seek to be Earth’s most customer-centric company for three primary customer sets: consumers, sells and enterprises” (Bezos, 2010). It is apparent that CEO Bezos understood that customer service and listening to the consumer would separate them for the rest. This paper will also compare and contrast competitors in the book sale market, competitors such as Barnes and Noble ad Borders and what has separated Amazon.com from them. Has the diversification of Amazon.com helped them gained global recognition? Or has a solid understanding of the market and customer needs propelled them to where they are today? The Pros and Cons Amazon.com jumped into the market in 1995 with an effective business tactic of online book sales. Not only did the company launch an English version of the website, but they also launched a Chinese, French, German and Japanese version to gain a global audience quickly. Amazon also receives about 615 million visitors annually according to a survey by complete.com (History of Amazon). Some dare to...
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