Amazon.com’s network structure
In 1995 the website of Amazon was launched, and called the ‘’Earth’s Biggest Bookstore’. It offered online buyers a large assortment of books.
But a lot of changes went on after the website launch, nowadays Amazon is a powerful network structure. The high advanced website is working together with other organizations to make everyone within this network successful. In the beginning the company didn’t owned a lot of inventory, warehouses, distribution centers or customer services, they left order fulfillment to another bookstore. After books they slowly started introducing other products like; cd’s, dvd’s, toys, beauty products by using marketplace sellers. Following the new entries in the assortment and international expansion, warehouses were build. The start of the broader network began in 1999, when they realized that the most important to the marketplace sellers was demand and the access to prospective buyers. That’s why Amazon decided to list the non-Amazon products right alongside their own in stead of using tabs to distinguish them. This ‘single-store’ strategy led to the development of a platform for commerce. A huge opportunity for small businesses and individuals and also for Amazon.com. In exchange for the visibility on Amazon’s most visited websites, Amazon received a fee. For larger organizations there were even more opportunities and possibilities for increasing there sales with the help of Amazon’s knowledge and website. These possibilities included syndicated store programs and traditional marketing relationships. Good examples are their collaboration with Circuit City and Toys ‘R’ Us. The last one indicates the importance of both companies having to offer something to the other. This relationship was based on an understanding of both company’s strengths and weaknesses. Further developments took place in the field of customers demands; Amazon was able to suggest additional purchases based on information...
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