The online retail industry engages in the selling of final products to end users through e-commerce. One of the most well known companies in this industry is Amazon which specializes in three major product and service groups: web hosting, digital content, and tangible product items. The web hosting service provides resources on which to host web applications. These resources include Amazon elastic computer cloud, Amazon simple storage service, Amazon relational database service, Amazon Simple Data Base, Amazon Cloud Front, Amazon Simple Queue Service, and Amazon Mechanical Trunk. These resources provide IT infrastructure services to business on a demand based need. Amazon’s digital content consists of portable e-reader content including books, newspapers, magazines, and blogs. It also includes a digital instant streaming video service and downloadable audio and music files. Amazon’s tangible product retail services are known as Amazon Marketplace, which provide final products to end users through e-commerce. This sells fixed price items and allows third party sellers to market new and used products from the same platform for a fee based off the final sell.
Amazon has an extensive customer review service of its products, has efficient delivery options, a proficient customer service commitment, and a fee based membership option, “Amazon Prime,” which provides customers with various incentives including free shipping. Amazon also has a developed marketing system which includes affiliates through third party sellers on other websites. Amazon also provides a drop shipping service for other companies, Amazon Fulfillment.
The competitive forces of Amazon include the threat of new entrants into online retail and IT solution business. Amazon does have significant barriers against this force, including patented technologies and unique distribution centers. Amazon also faces rivalry among existing companies... [continues]
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