What is E-Business
E-business (electronic business) is the conduct of online
business processes on the web, internet, extranet or a
combination thereof.
Amazon.com is one of the early companies which started
performing E-business operations.
Amazon.com History
Amazon was founded on July 5, 1994 by Jeff Bezos.
It started it’s E-business through selling books online in 1998.
The following year, it began selling music, video games,
consumer electronics, home improvement items, software,
games, and toys.
Nowadays, people could find and discover anything they might like to buy online
through Amazon.com.
Amazon.com currently has 13% market share of all the e-commerce players in the
market.
How does Amazon achieve Long-Tail
pattern?
Amazon has no storage costs i.e. it connects seller and buyer
directly.
It has many different products for may different niches.
FBA(Fulfillment by Amazon)
Amazon uses its own warehouse management software to
help with optimizing the third-party seller’s warehouse.
While third-party sellers will take care of the inventory of
their own products, Amazon is in charge of picking up orders
from the seller’s warehouse.
What happens when you Click Buy Button?
Receiving Products
Storing of Items
Picking Orders
Quality Assurance
Packing Orders
Delivering Orders
How Amazon Maintains Customer Value?
Range
Availability
Price
Customer Experience
Amazon Revenue Streams
Retail Sales
Commission on Reseller Sales
Amazon Prime monthly subscriptions
Conclusion
Amazon’s intention is to reach everyone in every place, with
wide variety of products.
With it’s business model, Amazon.com makes “Less of More.”