Introduction to How Amazon Works● Amazon.com started its history in 1995. Amazon.com sold itsfirst book from Jeff Bezos garage in Seattle.● Amazon.com sells lots and lots of stuff.● You can find beauty supplies, clothing, jewelry, gourmet food,sporting goods, pet supplies, books, CDs, DVDs, computers,furniture, toys, garden supplies, bedding and almost anythingelse you might want to buy.● What makes Amazon a giant is in the details. Besides itstremendous product range, Amazon makes every possibleattempt to customize the buyer experience.
Amazon Technology (1)● The central Amazon date warehouse is madeup of 28 Hewlett Packard servers, with fourCPUs per node, running Oracle 9i databasesoftware.The data warehouse is roughly dividedinto three functions: query, historical data andETL .● In addition to automatically encrypting creditcard numbers during the checkout process,Amazon lets users choose to encrypt everypiece of information they enter, like their name,address and gender.
Amazon Technology (2)● Amazon employs the Netscape SecureCommerce Server using the SSL protocol. Itstores all credit card numbers in a separatedatabase thats not internet-accessible,cutting off that possible entry point forhackers.● Customers who are particularly cautions canchoose to enter only a partial credit cardnumber over the Internet and then providethe rest by phone once the online order issubmitted.
Amazon E-commerce (1)● Amazon essentially leases space to theseretailers, who use Amazon.com as asupplemental outlet for their online sales.● Small sellers of used and new goods go toAmazon Marketplace, Amazon zShops orAmazon Auctions.● At Marketplace, sellers offer goods at a fixedprice, and at Auction they sell their stuff tothe highest bidder.
Amazon E-commerce (2)● In all of these programs, Amazon gets a cutof each sale (usually about 10 percent to 15percent) and sometimes charges additionallisting or subscription fees; in the case ofAmazon Advantage, the company takes a 55percent commission on each sale.● The Advantage channel is something like aconsignment setup, a sales avenue forpeople who create their own music CDs orhave self-published a book and simplylooking for a way to get it out there.
Amazon Tools,Marketing and Community● The level of customer tracking at Amazon.com is best-of-breed system. Using the datait collects on every registered user duringevery visit to the Web site, Amazon pointsusers to products they might actually be gladto discover and buy.● You can even customize therecommendations by giving Amazon moreinformation about yourself and your interestsand rating the products youve alreadypurchased.
Conclusion● Amazon has four software developmentcenters worldwide. There units areconstantly creating new features forAmazon.com and developing the technologyto support them.● As the result, Amazon.com always continuesprogressing and sells lots and lots of stuff.