Inthis individual assignment, I prefer choose Amazon as the E-Commerce platformbecause of the almost high popularity of it. Many people thought Amazon is exactlya complicated site. First of all, you must log in, go to browse the product youwish and finally make a purchase.
That’s all for it, so simple! Amazon provide different productsand services to all the customers. First, Amazon have Amazon “Garage” that canlet you keep your car’s make and model. So, you will easy to search the work,fits and suitable accessories for your vehicle.
Amazon also have “Home Services”that can help you and our mom to do the housework such as mow our green andlong lawn and wash our dirty and oily kitchen. Using Amazon’s Home Services, wecan easily book pre-vetted professionals whenever we need them. There are a fewof explore services by category such as home improvement, home services,computer and electronic, yard and outdoors, automotive, assembly, business andcommercial and cleaning. Amazon sell television, cablepackage or even provide phone service too.
This site also sells packages fromComcast in a format that’s can straightforward from the provider’s own site.Amazon always provide dedicated customer service to all the Amazon’s customersas they have partnered with XFINITY to resolve any issues. Transparent pricingalso can be found in Amazon as it provides review a breakdown of all carrierfees before you order.
Moreover, Amazon also have give-aways for customers. Thecustomers will get free gift cards or hardware such as the Fire Tablet andoffers valid by package. Amazon also launched an Etsycompetitor with is called as “Handmade” to help customers find the handcraftproducts by artisans. The customers can find handcraft products such asleather-bedecked skateboard and bespoke bridesmaid cards. Amazon will also provide “Launchpad”to start-ups it. “Launchpad” is Amazon’s created and designated section thatusually for fledgling products. After that, you will get the free stuff fromcompanies to review, if you get invited to become an Amazon Vine reviewer. Vine is Amazon’s invitation-only club for a small thepercentage of elite reviewers.
Amazon will send selected Vine reviewers a list of productsevery month. Two product can be select by each person a time and they can keepthose items as long as they provide a review within 30 days. Amazon assertsthat the reviews don’t have to be positive every time. The customeralso can use Amazon’s Mechanical Turk to crowd-source “human intelligencetasks” such as identifying photos to people all over the world. Mechanical Turk usually can let the users access to anon-demand workforce as it can give people who want to make a little extra moneya way to find quick-and-easy online labour. Amazonalso launched newly Amazon Inspire for teacher to check out as a brunch ofeducational resources.
You can get a discount on student loans from WellsFargo, if you are an Amazon Prime member and a student. Peoplewho pay Amazon’s Prime fee are eligible for a 0.50% discount on WellsFargo-issued loans. Prime members are also eligible for an additional 0.25%discount for enrolling in automatic monthly repayments. Ifyou own a business, whether work in IT or as a janitor, you can get a discounton bulk supplies. Next, you can also get a book published in Amazon’s Kindlestore less than 24 hours after submitting it through the Kindle DirectPublishing.
Afterthat, if you shop with Amazon Smile, the company will donate a percentage ofyour total to a charity of your choice at no extra cost to you. You also canadd the product to your shopping cart if you spot an Amazon link on Twitterwith the hashtag “#AmazonCart”. Apart from that, Amazon can let yousubscribes to certain items that you need and wish to buy over and over such asshampoo, toothpaste and soap. If you agreeing to buy an item continuously, youwill get a little discount. You personalize how often you’d like the itemdelivered, and Amazon will email you before shipping the item so you can delayit if you’re using a product slower than expected. Apartfrom this, you can buy refurbished goods, if you are the person that do notcare about buying something new.
The Warehouse Deals category on Amazon will offersdeep discounts on open-box, used, refurbished products that are in good condition.For example, you might get a returned air-condition for 15% off. Lastly,you also able to use Diamond Search to buy individual stones on the site basedon their carat, colour and shape. Now, lets us talk about Amazon’sbusiness model. There have 6 model which is growth strategies, valueproposition, market segments, value chain structure, revenue model andcompetitive strategy. Next, we will talk about revenuemodel of Amazon. First revenue is online bookstore to online shopping.
Amazonmarketplace is also one of the revenue of Amazon. Amazon Marketplace will fixthe price online marketplace to avoid have some argument between customers. Oneof the revenue is they can get 64% revenue from books and music video. The nextrevenue is from Amazon Advantages which will get 10% until 15% of sales.Affiliate Partnership Marketing is also one of the revenue which is Amazon willpay commission to site owner. Last revenue is a negative operating cash flowcycle.
Amazon is paid by customers before it needs to pay suppliers. Apart from this, we would talk aboutthe sales target for Amazon in year 2016 and present. Amazon’s total onlinesales in 2016 topped 140 billion and retail revenue increased nearly 25% in 2016. Operating cash flow on paceto rise 51% in 2016. They wish will have more than 200 billion of revenue and35 billion of operating cash flow. Now, they are paving the way for a 1trillion valuation. Amazonusually bases its marketing strategy on six pillars. First is it freelyproffers products and services.
Second, it uses a customer-friendly interface.Third, it scales easily from small to large. Fourth, it exploits itsaffiliate’s products and resources. Fifth, it uses existing communicationsystems. Last, it utilizes universal behaviours and mentalities. Much of theAmazon’s marketing is subliminal or indirect.
As the example, it does not run 1million dollar ads during Super Bowls nor post flyer in mall marketplaces.Amazon relies on wily online ploys, strong partner relation and a constantdeclaration of quality to market itself to the masses. TheS represent as strengths. The strength of Amazon is largest online retailer,robust brand image enhances bargaining power and diversified into product linesother than books to strengthen customer reach. The W represent weaknesses.
Theweaknesses of Amazon is free shipping offers would be a challenge in the longrun. The O represent as opportunities. The opportunities of Amazon isacquisitions extend product line and strengthen technical platform.
The Trepresent as threats. The treats of Amazon is foreign exchange fluctuation. Amazon’s supply chain process is simple but very effective.First, it starts with the steps which is placing an order by a customer.
Next,the order prompts a red light to come on in the warehouse which shows the workerthe products that have been ordered and the bar code is matched with the order.Then, the product is then placed in crates on a conveyor, which will go throughthe distribution centre before being sorted by bar codes. After that, crates arrive at the central point andthe bar codes of products are matched with orders and will sorted automaticallyinto one of several thousand chutes before going into a box. Furthermore, thebar code then identifies the customer order, boxes are packed, taped andweighed. Lastly, they are shipped by either US postal service or UPS for thelast mile, arriving at the consumer within 1 to 7 days. Inthe nutshell, Amazon has correctly positioned itself to grab the latest technologytrends in the world. It innovative in technology and usage of e-commerceservices enabled it to stay ahead of its competitors in the early stage of itsadoption. Moreover, Amazon’s brands actually describe themselves as a fast,innovative and friendly company which can be trusted.
Amazon also let theircustomer top priority and successfully appeals to their knowledge, interest andvalues. Overall, I have gained a lot of information about Jeff Bezos, thebusiness structure and organization about Amazon.