An example of an E-commerce success and its causes

Written by Bong Nyok Khim on Saturday, June 14, 2008 at 10:15 AM

With the changing trends of globalization and the advancement of modern technology, the development of e-commerce has boomed in the past few years. E-commerce consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. Amazon.com was launched in 1999, which is an e-commerce best known as the first online retailer of the Internet world.

Amazon is presently ruling the Internet business with its best marketing techniques and expertise in relation to the market trends and demands of its customers. It is the only website that contains altogether web books, business brands and retails on a single web-based business. Once the world's largest bookstore, Amazon.com also offers the world's largest selection of just about everything. Whether want to buy some new kitchenware or baby clothes; browse every conceivable title of new and used CDs, DVDs and books; or contribute a few bucks to favorite presidential candidate, an online universe of commerce is a mouse-click away. So, it contains items related to all ages, all interests and all fields as well as all areas.

A popular feature of Amazon is the ability for users to submit reviews to the web page of each product. Users must rate the product on a rating scale from one to five stars. Such rating scales will provide a basic idea of the popularity and dependability of a product. The review feature is one of the main reasons for Amazon.com’s success at selling books. In recent years, Amazon had created that allowed users to comment on the reviews.

In addition, Amazon.com also offers a lower cost to its customers as compared with its competitors. The reason is the fact that they have lower operating costs, thus hold fewer inventories than the traditional stores in the market. With lower prices, it can attract new customers to maximize its market share. The adoption of a strong base of selling products lead Amazon.com to achieve success in the filed of e-commerce.

Furthermore, its major promotion activity is to make use of mass media which are print and broadcast like newspaper, TV, and radio. This will enable them to make initial contact with customers. Through advertising, Amazon increases its brand awareness. A recent study by Interbrand ranked Amazon.com as the 57th most valuable brand in the world. A separate study by Opinion Research Corp. indicated that 60% of US adults were aware of the Amazon brand name, the highest awareness for any eCommerce brand name.

In conclusion, the strong organizational as well as goal oriented strategies and team work along its excellent customer oriented policies are the major causes which lead Amazon.com to gain tremendous economic profits and recognition among the other competitors in the field of e-commerce.


News about Amazon.com:
http://star-techcentral.com/tech/story.asp?file=/2007/9/27/technology/20070926092740&sec=technology

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