How Amazon Works


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How Amazon Works

  1. 1. How AmazonWorkss1180035 Shota FuruyaBusiness Writing: Week 4
  2. 2. E-Commerce Strategy● Amazon adopts the multi-leveled e- commerce strategy. ○ This strategy allows anyone to buy almost anything. ○ Customer of Amazon find goods sold by not only Amazon but also third-party seller. ○ Amazon works as the ultimate hub of Web business for selling merchandise.● Amazon also adopts the large scale affiliate program ○ Anyone can create Amazon links and earn some money by click-through sales. ○ Anyone can be Amazons seller.
  3. 3. Amazon Technology● Amazon uses Linux servers. ○ Amazon has some strong data warehouses. ○ Functions of these data warehouses are: ■ accept query ■ store historical data ■ ETL (Extract, Transform, Load)● The main concern of Amazon servers is security. ○ Amazon has so many personal information, including credit card number, etc. ○ Amazon insulates these data from the Internet and protects these from crackers.
  4. 4. Amazon Auctions● Small seller often uses Amazon Auctions ○ Sellers can sell their merchandises by auction system. ○ It is more secure than other auctions sites.● The other popular Amazon services are: ○ Amazon Marketplace ■ It allows third-party seller to sell their merchandise. ■ Some of these merchandise are sent by Amazon (no shipping costs). ○ Amazon zShops ■ It is almost same as Amazon Marketplace. ■ Third-party seller can sell goods at fixed-prices.
  5. 5. Amazon Advantage● The most significant advantage of Amazon is they sell almost all merchandises at very low prices. ○ They deliver goods without shipping costs. ○ They charges from listing or subscription fees. ○ They earns 55% commission on each sale.● Amazon also tries to improve their services. ○ Amazon tries to set up a perfect Web shop. ○ They researches e-commerce technology everyday.
  6. 6. Customer Tracking● Amazon uses the best-of-breed solution for customer tracking. ○ Amazon tracks their customer by using data: ■ Which sites do they visit? ■ How often do they visit there? ○ Amazon can recommend products their customer would want by these data. ○ Examples of products they recommend to their customer: ■ Similar to they searched or bought before. ■ Searched or bought by other people who are similar to he or she.
  7. 7. Amazon Community● The community of Amazon is one of the most largest community in Web shopping sites. ○ The customers of Amazon can easily posts their reviews of almost all products. ○ They can consult these reviews when they are going to buy goods.● A number of fan sites of Amazon is running from their customers.
  8. 8. Conclusion● Amazon uses many technologies and strategies.● The main technologies and strategies are: ○ The multi-leveled e-commerce strategy. ○ Affiliate program. ○ Customer tracking using base-of-breed solution.● Amazon uses so many strong servers and strong security.● Amazon deploys large community for their customers.