Topics:, Customer service, Electronic commerce Pages: 11 (1088 words) Published: December 15, 2012

‘’ founded in 1994 by Jeff Bezos as a pure
online book retailer

Vision is becoming the place for consumers to find and
discover anything they might want to buy online

This vision of ‘breadth and selection’ takes its roots from the name of The World’s Largest River

Amazon select the lead strategy so they conduct largescale innovative e-commerce activities

•The Retail Model
•The Market Place Model
•Integrating the Businesses
•Executing the Single-Store Vision
•The Apparel Opportunity

In July of 1995 opened for business as ‘Earth’s Biggest Bookstore’

In 1996 achieved $875.000 in sales , in 1997 $16 million

Daily site visits 80.000 with 340.000 unique customers

In 1997 went public, in 1998 stock price increased by 3700% from $1.5 to $53

Business to Consumer Transactions

Ordering its books on demand from large book distributors limits Working Capital and Warehousing Investments.

They didn’t take responsibility, used drop shipping technique

Problem: While they are avoiding investments on
warehousing, don’t they risk the delivery of products on time and

 Expanding Its Product Range

In June 1998 started to sell music

In Nov 1998 entered DVD/ Video Business

During last half of 1999 launched toys, electronics, tools,

During 2000 launched lawn and patio and kitchen products
as well as cell phones and wireless services

Expanded overseas to UK, Germany, Japan…

 Investing in Distribution

In preperation for Christmas 1999 season, invested its
warehouse and fulfillment capabilities

Increased distribution capability in product categories where it could not rely on third-party distributors

 Supporting the Business with Technology

Innovations in Customer Facing Technology


Web site personalization and customization

One click buying

Stored customer info

Invest in its e-commerce infrastructure
 Payment processing systems,
 Customer Service Operations

 Entering the Auction Space

In early 1999, they realize potential power of auctions to
expand selecting of products available to customers.

Auction capability on in March 1999

Different from e-bay, guarenteeing buyers’ financial
protection, providing access to customer relations

Partnership with Sotheby for higher end arts and antique

Consumer to consumer transactions started

 Zshops

An area on web site that brings together customers and third party sellers

Introduced in the fall of 1999

Provided opportunity to operate within Amazon for small and
medium-sized merchants

Uploading, maintaining up to 40000 items with fixed price

 Merchant Relationships

Partnerships with other internet retailers (collaborative

Paid Amazon placement and referral fees for advertising

Purchasing equity in the partners

Referred as Amazon Commerce Network

Thousands of alliances formed

Also relationships with retailers that did not operate on
the web

Toys ‘R’ Us Example

Housing inventory, shipping them to customers, process
payments, perform post sale service

Toys tab in the

Toys ‘R’ Us retained responsibility for buying and pricing inventory

 Evolving Commerce Models

Get things done with partnerships, otherwise you cannot do

Traditional Retailers vs. Web-based businesses

Amazon’s certain skills and customer base on the table

Help customer to find and discover products with web
Acquisition phase in customer service life cycle

Value of Amazon brand and customer experiences

Integrating the Business
 Initial role of third party sellers
• Being in...
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