pure play VS bricks and clicks

Topics: Electronic commerce, Online shopping, Amazon.com Pages: 1 (300 words) Published: January 10, 2014
Factors beyond Amazon.com global acceptance and success can be categorized into 4 categories: offering competitive prices, straightforward web design and friendly interface, convenient payment system, and most importantly the unique shopping experience.

1.Price: Amazon differentiates itself mainly on the basis of price and by making sure that it offers the same quality products as any other company with a noticeably lower price. In addition, sellers do not pay any fees for product listing and it cost nothing until the product is sold.

In order to make this happens, Amazon.com is doing great effort with wholesalers and tends to “connect to resources that give it scale rather than adding internal physical mass.” The online bookstore allows lesser geographical constraints and easier expansion. According to John Jordan, Amazon is roughly 10% cheaper than a physical retailer with more cost saving with order size. Independent sellers or affiliates play a major role in selling the products and they constitute about 40% of the entire sales.

2.Web design: Amazon is considered an undisputed leader in online shopping with a well defined website. The organized visual hierarchy, page organization, and friendly interface and layout allow easy navigation and enjoyable shopping. Amazon believes in customer differentiation and consumers easily recognize and differentiate Amazon.com experience from others. Personalized shopping experience is on of a kind in which users get recommendations and summary related to the user’s interest and purchasing or search history.

3.Convenient payment: all payments are handled securely by Amazon.com itself. Sellers do not have to establish different payments account as in eBay and Paypal. Amazon.com provides a convenient “1-click” ordering that allow customers to make purchases without getting into the hassles of other online checkout payment systems.

4. Extraordinary convenient shopping experience:Wide selection: being...
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