Page 179 - DCAP306_DCAP511_E-COMMERCE_AND_E-BUSINESS

E-Commerce and E-Business

14.4.1 Amazon.com

Amazon.com

Case Study
A mazon.com is an e-commerce pioneer that began in the year 1995 as a unique online book

store with a plan to revolutionize the market place. It now offers various new, used and
refurbished products in different categories like books, DVDs, electronic gadgets, apparels,
jewelry, sports, and so on. It now ships millions of products to more than 200 countries.
Through the use of a unique business model when online retailing was a new concept, the organization
looked to minimize overheads while capturing a key demographic group on a global scale. The online
model gave the opportunity to offer increased customer choice beyond the traditional retailer and mail
order companies.

The Web site initially concentrated on selling books online. It provided an option for the customers to
view the preview of the books and purchase the books online. The Internet search technology allows
customers to access the entire database of books.
Amazon has made strategic acquisitions to gain dominance in research and technology. Being a
customer centric organization, Amazon has incorporated many advanced and innovative techniques
like one-click technology, reviews, personalization, search options, browsing opportunities, auctions,
and merchant partnerships that attracted more customers.
Amazon’s success is based on strong core values like customer satisfaction, employee enthusiasm,
operational efficiency, and effective Web strategy. Some of the tactics that were used by the
organization to enhance its competitive advantage and overall growth are:
1. Offering products at competitive prices.
2. Marketing quality products that attract customers.
3. Providing hassle free services that satisfy the customer needs, fulfill expectations and resolve any
problems at a faster rate.

4. Applying technology to make ordering secure, easy, and efficient.
5. Growing through strategic alliances and acquisitions.
Amazon.com offers an online catalog of various products and information. The home page of the site is
a hub that links to catalogs of different product or services. The different functionalities of the site make
it unique. The configuration e-mail facility keeps the users informed and maximizes their trust in the
overall fulfillment process.
The fulfillment process mainly provides customers a confirmation mail which clearly states the product
purchased, time, date, price, shipping details, and mode of payment. The login screen of the Web site
provides an enhanced feature for the non - members or new customers trying to log into the Web site.
Amazon.com presents two questions to the customers logging into the Web site in a linear order.
1. What is your e-mail address?

2. Do you have an Amazon.com password?
The users can respond to any one question. According to the membership status of the customer, the
Web site allows complete access or partial access to the Web site.
Amazon.com is the globe’s largest customer centric organization that focuses on customer relationships.
The advanced functionality of the Web site tracks the browsing and purchase history of its customers
and the collaborative filtering systems computes the similarity of preferences among different
individuals. This process allows the organization to create a unique experience for every individual by
suggesting products likely to interest that person. The suggestions are either made in real time when the
users navigate the site or through e-mails.

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