2. OVERVIEW
• Amazon.com, Inc. is an American
multinational electronic commerce company
• Headquarters in Washington
• World's largest online retailer
3.
4. In brief
• They have three primary customer sets: Consumers, Sellers
and Developers
• They serve consumers customers through their retail
• websites.
• They offer programs that enable seller customers to sell
their products on their website.
• Lastly they serve their developer customers through their web
services that provide access to technology infrastructure that
developers can use to enable virtually any type of business.
5.
6. • Separate retail websites for the following
countries: United States, Canada, United
Kingdom, France, Germany, Italy, Spain,
Japan, and China
• Expected to launch its websites in Poland ,
Brazil , Netherlands and Sweden
7. AMAZON PRODUCT DEPARTMENT
• Books.
• Movies , music and games.
• Digital downloads
• Electronics and computers.
• Home and garden.
• Grocery.
• Toys
• Apparel and jewellery.
• Shoes and outdoors.
• Tools and industrial equipments.
8.
9. WHAT AMAZON'S EBOOK STRATEGY
MEANS
1.DISINTERMEDIATION
- Bookselling in 1994 was a notoriously backward-
looking, inefficient, and
- old-fashioned area of the retail sector
2. MONOPOLY
3. MONOPSONY
Amazon seems to be trying to simultaneously
establish a wholesale monopsony and a retail
monopoly in the ebook sector.
10. • PREDATORY PRICING
• Huge investment in the Kindle platform
worthwhile, and by 2010 Amazon had come
close to an 85% market share in the ebook
sector
• 2012, and ebooks are likely to hit 40% of total
publishing sales by the end of this year, and
are on the way to 60% within five years
11. ACQUISITIONS
• 1998: Planet All, a reminder service based in
Cambridge, a UK online book retailer, which
became Amazon UK on October 15, 1998
• 1999: Internet Movie Database (IMDb); Alexa
Internet, Accept.com, and Exchange.com
• 2003: Online music retailer CD Now By 2011,
the web site cdnow.com
12. CONTD..
• 2004: Joyo.com, a Chinese e-commerce
website
• 2006: Shopbop, a retailer of designer clothing
and accessories for women, based in Madison
• 2012: Kiva Systems
13. SUBSIDIARIES
• 2004: A9.com, a company focused on
researching and building innovative
technology
• 2004: Lab126, developers of integrated
consumer electronics such as the Kindle
• 2007: Endless.com, an e-commerce brand
focusing on shoes
• 2007: Brilliance Audio, the largest independent
audio book producer in the U.S
14. • Locations
• Amazon has offices, fulfillment centers,
customer service centers and software
development centers across North America,
Latin America, Europe, Africa, and Asia.
15. • Software development centers
• While much of Amazon's software development
occurs in Seattle,
• Company employs software developers in centers
across the globe
• Some of these sites are run by an Amazon subsidiary
called A2Z Development
- USA , Canada ,UK ,China , Japan
– Ireland: Dublin
– Romania: Iaşi
– India: Bangalore, Chennai, and Hyderabad
16. PRODUCTS AND SERVICES
• Third-generation Amazon Kindle
• Retail goods
• Private labels and exclusive marketing arrangements
• In August 2005, Amazon began selling products
under its own private label,
• "Pinzon"
17. CONTD..
• Computing services
• Amazon launched Amazon Web Services (AWS) in
2002, which provides programmatic access to latent
features on its website
18. Donations
• In 2004, Amazon's "Presidential Candidates" allowed
customers to donate $5 to $200 to the campaigns of
2004 U.S. presidential hopefuls
• Reactivated a Red Cross donation channel after
crises such as the September 11 attacks, Hurricane
Katrina, and the 2004 earthquake and tsunami in the
Indian Ocean
• By January 2005, nearly 200,000 people had donated
over $15.7 million in the US
19. WEBSITE
• The domain amazon.com attracted more than
615 million visitors annually , twice the
number of walmart.com
20. • THIRD-PARTY SELLERS
• Amazon derives about 40% of its sales from affiliate
marketing called "Amazon Associates"
• Associates receive a commission for referring
customers to Amazon by placing links on their
websites to Amazon, if the referral results in a sale
• "over 900,000 members" in its affiliate programs
• Unlike eBay, Amazon sellers do not have to maintain
separate payment accounts; all payments are handled
by Amazon.
21. • AMAZON TECHNOLOGY
• Customer Relationship Management (CRM) and Information
Management (IM) support Amazon’s business strategy
• The core technology that keeps Amazon running is Linux-
based
• Amazon’s technology architecture handles millions of back-
end operations every day, as well as queries from more than
half a million third-party sellers
• With hundreds of thousands of people sending their credit card
numbers to Amazon’s servers everyday, security becomes a
major concern.
22. • Multi-level sales strategy
• Multi level e-commerce strategy
• Focusing on Business-to-Consumer relationships
between itself and its customers, and
• Business-to-Business relationships between itself and
its suppliers
• Then moved to incorporate Customer-to-Business
transactions as it realized the value of customer
reviews as part of the product descriptions
• It now also facilitates customer to customer
23. AMAZON INDIA
• The world's largest online retailer
Amazon.com Inc entered India on Feb 2, 2012
• with the launch of its shopping website
junglee.com
• Junglee.com will offer more than 12 million
products from over 14,000 Indian and global
brands,
24. • Amazon said last month it was setting up its first
warehouses in India, which the company said would
make shipments faster and cheaper
• India's $2 billion book market is growing at around
15 percent E-commerce has a huge potential in India,
• Country of more than 1.2 billion people with a
bulging middle class and rapidly-rising incomes
25. CONTD….
• Biggest competition in India will come from e-
commerce portal Flipkart.com,
• It is targeting at least $100 million in sales for
the current financial year
• $1 billion by 2015,
26. Controversies
• Sales and use taxes
• Alleged tax avoidance in the UK
• Alleged Mistreatment of Individual Sellers
• Lobbying
