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  1. 1. WEEK 4individual Reading Topic: HOW AMAZON WORKS? s1140160 Hiroaki Toju
  2. 2. Outline of AmazonAmazon has started in 1995. First, they treat only books, selling scale is small. In 2006, they has sites serving seven countries.Amazon.com sells lots and lots of stuff. We can find books, CDs, DVDs, computers, furniture, and almost anything else we might want to buy.Amazon adopts customer tracking. If you let the Web site stick a cookie on your hard drive, youll find yourself on the receiving end of all sorts of useful features
  3. 3. Amazon Technology• The massive technology core that keeps Amazon running is entirely Linux-based.• Amazons data warehouse is roughly divided into three functions: query, historical data and ETL (extract, transform, and load -- a primary database function that pulls data from one source and integrates it into another).• Amazons technology architecture handles millions of back-end operations every day as well as queries from more than half a million third-party sellers.
  4. 4. Amazon Technology• Amazon employs the Netscape Secure Commerce Server using the SSL (secure socket layer) protocol. It stores all credit card numbers in a separate database thats not Internet-accessible, cutting off that possible entry point for hackers. Customers who are particularly cautious can choose to enter only a partial credit card number over the Internet and then provide the rest by phone once the online order is submitted.
  5. 5. Amazon E-commerce• Small sellers of used and new goods go to Amazon Marketplace, Amazon zShops or Amazon Auctions. At Marketplace, sellers offer goods at a fixed price, and at Auctions they sell their stuff to the highest bidder. Amazon zShops features only used goods at fixed prices. If an item listed on zShops, Marketplace or Auctions is also sold on the main Amazon.com, it appears in a box beside the Amazon.com item so buyers can see if someone else is selling the product for less in one of the other sales channels.
  6. 6. Amazon E-commerce• Amazon Advantage is a place where people can sell new books, music and movies directly from the Amazon warehouse instead of from their home or store. Amazon gets a cut of each sale (usually about 10 percent to 15 percent) and sometimes charges additional listing or subscription fees; in the case of Amazon Advantage, the company takes a 55 percent commission on each sale.
  7. 7. Amazon E-commerce• Through Amazons Associate Program, anyone with a Web site can post a link to Amazon.com and earn some money. The associate gets a cut of any sale made directly through that link. The cut ranges from 4 percent to 7.5 percent depending on which fee structure the associate signs up for.
  8. 8. Amazon Tools, Marketing and Community• Amazons marketing structure is a lesson in cost-efficiency and brilliant self- promotion.• The level of customer tracking at Amazon.com is another best-of-breed system. Using the data it collects on every registered user during every visit to the Web site, Amazon points users to products they might actually be glad to discover -- and buy.