In basic terms, organization to consumer (B2C) web commerce can be said to be a transaction-based relationship that is available between the business’ web page and the consumer. This transactional relationship can be sparked when the end user wood logs onto a particular business’ website with an aim of acquiring a good or service. In such a case, on collection of the product she or he is interested in, the consumer is caused to pay for the favorable or support procured by using a wide range of payment methods including but not in any respect limited to PayPal, check or credit card. The transactional marriage in this case is concluded once the customer will get the good or perhaps service purchased using this system. In this text message, I evaluate Amazon, a well known business to consumer (B2C) e-commerce business. In so doing, Let me describe the business and emphasize how it benefits from electronic digital commerce. Even more, I will check out Amazon’s site with an aim of suggesting solutions how the enterprise can be increased.
Amazon: An outline of the Firm
Amazon. com, Inc. is among the largest electronic commerce companies around the globe. With Seattle, Washington serving as the headquarters, the business which started off as a book shop offering on the market books to its global clientele features today varied to offer a wide range of products and services including but not at all limited to computer programs, electronic products, mobile devices, Dvd videos, toys, home furniture and even food. Basically, the corporation serves its clientele using its retail Sites which are focused on offer convenience and acceleration to consumers. Founded in 1994, a global organization operates in the catalog and postal mail order homes industry having its sector specifically being the assistance sector. The catalog and mail purchase houses industry is seen as non-store stores. Organizations with this industry mainly deliver products bought by consumers through the snail mail. It can be mentioned that one of the extremely significant benefits that players in this industry reap is the elimination of sales staff and hire expenses. With this industry, the main competitors of Amazon include EBAY, Wal-Mart and Barnes Noble.
Relating to Ireland, Hitt and Hoskisson (2011), a quest statement assists any given organization to highlight it is intent. When it comes to the mission of Amazon online, the same has as:
“To build a place where people can come and find out anything they might want to buy on the web. ” (Ireland, Hitt and Hoskisson, 2011)
As featured in its Entrepreneur Relations page, the firm states their vision while:
“We keep pace with be Earth’s most customer-centric company for 3 primary client sets: buyer customers, seller customers and developer customers. ” (Amazon, 2011)
Advantages of Electronic Business: An Focus on Amazon
It can be noted the fact that advent of the world wide web has became available many possibilities for businesses. Web commerce is one of such an opportunity. According to Fazlollahi (2002), e-commerce can be taken to be “the usage of technology mediated exchanges simply by business for the purpose of selling goods and services over the internet. inch In the recent past, the growth of web commerce has been alternatively fast with an increase of businesses turning into motivated with a wide range of good embrace system. This likewise happens to be the truth for Amazon online marketplace. By enjoying e-commerce, and a lot specifically business to consumer (B2C) web commerce, Amazon has been able to get a a large number of benefits that we highlight under.
To begin with, the web retailer offers by implementing e-commerce properly conquered geographic limitations. Generally, for those merchants with physical stores, their sales tend to be limited to the geographical areas they can assistance. However , all those retailers who may have e-commerce websites like Amazon online marketplace have the globe as their playground. It is therefore reasonable to express that Amazon . com can make revenue anywhere over the world without the restrictions of location. For instance, a buyer in a far African country can order for an electronic product and have it shipped at his or her doorstep within a couple of organization days. Consequently Amazon will not have to available a store in each and every nation so as to be able to service the needs of each and every customer. It has a positive influence on the bottom line in the company.
Up coming, e-commerce multiplies the number of customers a given organization has access to. Indeed, in respect to Reynolds (2004), various e-commerce websites receive purchases (international) issues very first day of operation. It could be noted that whereas human relationships and personalisation serve as the main element drivers of physical price tag, online price tag has search engines like yahoo as yet another driver in addition to the two individuals stated earlier in. For instance, a customer seeking more information on a provided product or a customer seeking ways of solving a given concern could land on a link that which guides him / her to an on-line retailer just like Amazon. Therefore effectively, Amazon . com benefits by having an additional funnel which is available in handy in the enhancement of sales. Thus in comparison to a regular physical retail store, Amazon successfully has usage of a larger consumer bottom.
Third, we have the advantage of reduced costs. Relating to May possibly (2000), virtually any business that embraces e-commerce reaps in terms of cost efficiencies. Indeed, this has been touted as one of the main benefits that amass to those businesses that take hold of e-commerce. Thus for a organization that would like to adopt a competitive approach by offering usana products for sale at a price that is certainly below regarding the competition, the relevance of e-commerce cannot be overstated. Without a doubt, Amazon can be today able to sell usana products at a discount as a result of e-commerce. Regarding this, the online store effectively decreases its costs on two main methodologies. First, we certainly have cost reductions on the promoting front then cost reductions in terms of personnel. When it comes to marketing and advertising, it should be noted that some of the most economical platforms will be in organic search engine targeted traffic maximization, the use of social media and lastly, the utilization of pay-per-click as yet another option. In regards to personnel, Amazon online marketplace is able to maintain a relatively slim workforce in comparison to other physical retailers. It turned out made possible thanks to the fewer persons required to function the ecommerce setup due to the software of a a comprehensive portfolio of operational techniques including but not in any way limited to the management of inventory, payments controlling, billing etc . Further, while Meier and Stormer (2009) note, safe-keeping costs happen to be relatively lower for online stores.
Fourth, throughout the online selling platform, Amazon is able to avail to customers as much info as possible relating to a given item. Generally, there exists an inherent limit as to just how much information the physical retailer can display within a physical retail outlet. Further, in the matter of a physical merchant, it becomes rather difficult to efficiently equip shop attendants with sufficient information so as to answer all the questions clients may hurl for them. Amazon does not come across such restrictions. In fact , a review of the website of Amazon reveals how convenient it is to get a customer to obtain a lot of information regarding a given products by just making a few clicks. It should be noted that in the case of Amazon online, such information is availed by the suppliers of the ‘listed’ products. Hence effectively, Amazon online marketplace does not incur any expense for the same.
Next, Amazon can offer for sale niche items which could sell in tiny volumes within a conventional physical store. According to Witcher and Chau (2010), the industry for market products is currently more attractive pertaining to online retailers (like Amazon) because the use of websites allows those to have a worldwide reach. In basic conditions, a niche product can be defined as that product which in turn appeals to a unique market. A good example of a niche product which can be found available in Amazon’s Website is actually a wedding dress. For the physical shop, the proceeds of wedding dresses may not be drastically high as a result of relatively fewer weddings happening in a offered geographic region. Hence in that scenario, such a niche method best distributed by retailers specializing in that particular market. Yet , Amazon contains a global coverage and hence possibly for such a niche merchandise as a wedding gown, the turnover may still be significantly large.
Lastly, an enterprise utilizing e-commerce can be able to establish for on its own a eco friendly competitive benefit. For instance, with cost savings that are brought about by the utilization of this platform, a business can significantly lower the cost of its goods and services so that it is able to provide the same for sale to clientele at a discount. This kind of effectively acts as an entrance barrier and additional protects the company from the existing competition. Therefore in the case of Amazon . com, the online merchant has an option or spending a ton price wars should the same be deemed necessary to guard