How Amazon Works1. Introduction to How Amazon Works19952006countrycompaniesIn 1995, Amazon.com sold its first book, which shipped from Jeff Bezos garage in Seattle.In 2006, Amazon.com sells a lot more than books and has sites serving seven countries, with21 fulfillment centers around the globe totaling more than 9 million square feet of warehousespace.The story is an e-commerce dream, and Jeff Bezos was Time magazines Person of the Year in1999. The innovation and business savvy that sustains Amazon.
2.Amazon TechnologyLinux-basedlargestdatacapacitysecurityThe massive technology core that keeps Amazon running is entirely Linux-based.As of 2005, Amazon has the worlds three largest Linux databases, with a total capacity of 7.8terabytes (TB), 18.5 TB and 24.7 TB respectively.In the 2003 holiday season, Amazon processed a top-end 1 million shipments and 20 millioninventory updates in one day. Amazons sales volume means that hundreds of thousandsof people send their credit cards numbers to Amazons servers every day, and security is amajor concern. In addition to automatically encrypting credit card numbers during the checkoutprocess, Amazon lets users choose to encrypt every piece of information they enter, like theirname, address and gender.
3.Amazon E-commerceretailersMarketplacezShopsAuctionssellersLarge retailers like Nordstrom, Lands End and Target use Amazon.com to sell their products inaddition to selling them through their own Web sites.Small sellers of used and new goods go to Amazon Marketplace, Amazon zShops or AmazonAuctions.At Marketplace, sellers offer goods at a fixed price, and at Auctions they sell their stuff to thehighest bidder.
4.Amazon Tools, Marketing and CommunitystructurecostvaluecustomertrackingAmazons marketing structure is a lesson in cost-efficiency and brilliant self-promotion.Amazons associates link to Amazon products in order to add value to their own Web sites,sending people to Amazon to make their purchases.It costs Amazon practically nothing.The level of customer tracking at Amazon.com is another best-of-breed system. Using the datait collects on every registered user during every visit to the Web site, Amazon points users toproducts they might actually be glad to discover -- and buy.