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Amazon Business Activities
Basically, Amazon provides a wide range of products and services to both individuals and businesses. The company acts as a retailer as well as a third party seller. The company’s e-business activities are normally operated in a number of business models. These models are designed to attract and retains customers from different markets while at the same time keeping up with technological advancements. The company allows individual customers to create accounts to be able to purchase its product and services as well as purchase those of its affiliate businesses.
The company’s online retail services have enabled businesses to trade their goods using its retailer platform. Businesses are able to create accounts and then upload their products they wish to sell. As such, customers are able to view the products and purchase them enabling the businesses to capture payments online. Businesses are able to capitalize of the Amazon’s Webstore which allows them to benefit from its search engines. Customers have the option of making online payment directly to the business in question or through Amazon.
Ultimately, the company also has affiliate programs that allow sellers to earn income through advertising its products as well as online retailers. A seller is able to earn referral fee whenever a consumer makes a purchase of its products and services after following on an affiliate’s ad link. Amazon also offers publishing services. This has enabled writers to sell of self-publish this music, movies, and books online. However, it is imperative for writers to copyright such pieces before publishing them. The publishing services are offered for free. Nonetheless, the company is able to capture earnings through royalty payments and shipping services.
Additionally, the company allows business to store as well as ship their products from its fulfillment center. Companies are able to send their products to the center before they can be able to sell them through Amazon.com or otherwise depending on their preferences. Amazon ensures product orders are fulfilled and then ships them to different destinations as ordered by individual customers or different businesses.
The company has developed great relationships with different types businesses around the globe regardless of their sizes. This includes large corporations and sole proprietors. Newly formed businesses are able to create personal accounts with the company before upgrading them at a later stage after they realize an increase in their sales. Businesses selling their products and services are able to enjoy increased sales as well as more exposure to customers. On the other hand, Amazon benefits through the sale of its products and services in addition to commissions, royalties, and membership fees earned from its affiliate businesses.
Advantages Enjoyed by Amazon.com
The company enjoys a number of advantages over other companies that are not operationally on the web. For example, the company is able to access a large number of customers from the entire world. Businesses that are not operational on the web are disadvantaged as they can only access customers in areas where they have established their businesses or areas of their physical presence. Amazon is not limited by such factors as customers can easily access its products and services as long as they have access to the internet .
Customers also find it convenient to purchase from e-commerce companies than visiting businesses in their physical locations. This is because such businesses are associated with fast selling or buying procedures. Customers also find it easy to access their products and services. This is also a clear indication that Amazon has an advantage over other businesses. Consequently, customers are also able to select different products and services without having to move from one place to another. As mentioned earlier, the company offers business-2-bisiness services. This implies that customers have access to a variety of products provided by the affiliate businesses. As result, customers are able to get almost anything they want at Amazon.com.
Similarly, Amazon is able to sell its product at any time of the day be it at during the day or at night. A customer can still its online retailers and access its products and services. This is unlike businesses that have to close their businesses during at night hence making it impossible for customers to make purchases during this time. Amazon is also able to enjoy low operational costs hence it is able to offer quality services to customers as compared to companies that are not operational on the web. For example, the company is able to enjoy low marketing costs as most of its products are advertise by its affiliate businesses. The company also enjoys automation of inventory management, payments, billing, and checkout. As such, it is able to cut costs relating to the number of personnel needed to offer its products and services to customers.
Equally, the company is able to benefit from cutting some costs incurred by companies that favor brick and motor strategy. Such companies have to spend a substantial amount of money setting up their physical locations to be able to serve their customers. Amazon has been able to avoid such costs as they are not required for it to reach out to its customers. With this being the case, it is able to realize more profits as compared to companies operating physical on different markets.
E-commerce and other Information Systems
E-commerce is also linked to other information systems that enable the company to provide product and services to its customers. Essentially, information is very vital with regards to business transactions carried out over the internet. This is because e-commerce not only offers individuals with -opportunities but also threats. One of the major threats of e-commerce is the security of information provided by customers when trading online. There are customers that are normally reluctant to provide information relating to their credit cards and personal information for fear of the same falling into the wrong hands. It is imperative for the company to ensure a strong information security system that an enable it is reduce the risks and threats relating to the same. The company needs to ensure that customers feel safe when providing sensitive information on the internet. This is the only way it will be able to attract and retain more customers.
E-commerce systems are also tied with accounting information systems. E-commerce companies just like any other company must ensure they have strong information systems to be able to make more informed decisions. It needs to ensure its financial decisions reflect its overall business goal or objective. Failure to do this can lead to the company incurring more losses than profits. This can also impede the company from competing effectively on the market. This also enables the company to remit its financial reports to the public as required by the law.
Correspondingly, e-commerce systems are also tied with inventory control information systems. This are systems used to store as well as administer different types of data required for the purposes of ensuring its accuracy and efficiency in inventory management. This includes fields or modules that are normally used to track items and locations, reorder points, inventory error tracking, lead times, and requisitions among others. This is a system that can interface with ERP among other applications. Basically, inventory control information systems enable Amazon to ensure efficiency in the production and delivery of products and services to customers.