THE SUCCESS BEHIND AMAZON.COM
Amazon was established by Jeff Bezos in 1994 then it goes online on 1995 during their humble beginning in Seattle, Washington they were only selling electronic books as their start up and later diversified in selling various products and services including computer software, games, food stuff, toys, MP3 downloads and more. They started their operations thoroughly in an online engagement that they have not used the brick and mortar strategy and their market is worldwide.
Consistently a large bookstore like HMV, Barnes and Nobles and Waterstones with this type can handle two hundred thousand books (200,000) while online store can hold unlimited numbers of books to sell since it is in an interactive form and their supplier can come from all around the world and the access of their customers is not limited to a certain location as long as there is a computer and internet connection their customers can simply choose and click the books and other products.
They also has an instant search engine about finding the books from A to Z by simply type and click the keywords, this system started at least 120,000 books in 2003 but currently there are more than 300,000 books that they are selling in cooperation with at least 130 publishers and distributors around the world. As of today it is believed that Amazon.com is the number online book seller but for confidential reason they would not want to release their sales rank to the public. Consistently with the help of affiliates who also want to sell books has been the reason for their unveiling success and continuous expansion.
They have also increased their sales as much as 40% because of affiliate market or associate sellers, everyone who has a website can use the opportunity of the Amazon by simply linking their sets of products of their choice in the form of banner and text ads. Affiliate can earn like a sales person if a customer can click and buy using such links, currently Amazon has gained millions of affiliate re-seller who joined their program worldwide. Amazingly the process continues that is why they have become very successful in selling not just their books but also most of their products and services as more and more people visit and buy on their website.
Amazon.com even gives a loyalty awards for customers who often buy. The result has been a mutual benefit from customers to sellers they can even accept small business suppliers to sell their products in their website. They also cater to customers who want to get MP3 and their option to download has started last September of 2007. The music downloads both free and on sale has become the current trends from different nations worldwide because of easy selection, low price and easy payment system. Customers can simply choose and download the songs legally. The system also includes other products and services such as DVD, appliances, food services etc easily delivered worldwide upon online payment.
Because of its undeniable market leadership potentials the company has presented so many opportunities to people and to the company itself that they can build consistent business, personal and public partnership to their customers to assure dominant sales strategy although Amazon do not compete with bricks and mortar they are also presented with this option possibility if they like. The partnership of various e-commerce industry and small business highly respected their business platform and a simple promotion can gather more and more affiliate from around the world.
They can also be presented with various threats from various e-book sellers like eBay and other company as people continues to discover the easy opportunity to set up their own online bookstore. There are also threats from delivery of merchandise and other items about its delivery, unknowingly the price of crude oil, tariff and taxes has somehow eliminate their potential sales from various countries who have a high cost additional payment from shipment so Amazon will need to concentrate more on online selling instead of tangible product sales in terms of international trading.
The offering of their loyalty program to reduce the shipping cost can also post a threat on their part but it can also gain a higher demand whichever comes first will be their determinants but again this will post a gamble. Amazon can focus heavily on their tie ups and expansion from other countries and they have done so, they have also concentrated on improvement and innovation while their competition focus on how they can serve better and gain the trust that Amazon has already built to their clients. Due to this reasons, Amazon can still enjoy the privilege of their market leadership in the years to come as long as their customers continues to show confidence in their company.
Credit:ivythesis.typepad.com
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