An example of an E-Commerce success and its causes

by Vee Lean, Tan


What is the first thing came to your mind when you saw the logo at above? Or what is the first website came to your mind when someone asks you to purchase a book in internet? Most of the people will always give you the answer “Amazon”, the company which has successful e-commerce business in this emerging environment.


Amazon.com, is a company which having a pure-play e-commerce business that based in Seattle, Washington. It is one of the first main companies that sold its goods via internet in year 1995, and its founder, Jeffrey Preston Bezos had successfully made Amazon.com became the largest online retailer in United States.



Initially, Amazon.com was only started its business by selling books online. It gives the internet users a whole new experience on online purchasing. Now when you visit the website, you shall discover that it had already expanded its business by diversified the product lines into DVD, electronics, gourmet food, software etc. Through this we can see that Amazon.com always trying to upgrade itself in order to serve the various demand from its customers.



Since Amazon.com is so much successful nowadays, what constitutes this result? In my opinion, the key successful reason is the price it offers. Amazon is able to differentiate itself by making sure that it offers the same quality products as any other company but with a lower price. In addition, sellers are free from paying the fees for product listing and it only cost them when the products are sold. In the buyers’ point of view, they able to enjoy zero sales tax, discounts and even free shipping for some products. All these had brought Amazon.com to the prosperity that we could see now.



Another primary reason that brought Amazon.com to the world class ranking is its strong focus on customers’ experience. According to Maryam Mohit, vice president of Amazon.com, customer centricity has been part of the company’s mission since it incorporated. It is not merely what the designers or operation team thinks, in fact, customers’ suggestions and requests are what the designers will take into account when developing the user interface. Also, the people who run the back-end operation will always consider are the boxes easy to open or what packing material to use? All this had made the company to have a customer oriented goal and eventually able to maintain customer loyalty.



Last but not least, Amazon.com is much more flexible than its competitors or any other physical retail shops. The reason behind is the items are unlimited and not limited to any specific category. Looking at the drop down item list, the users are impressed with the range of the products that provided by Amazon. It allows its customers to purchase different types of products within the same website.



In my point of view, there is lot more successful e-commerce examples, and each of them has their own unique success factors. Doing business online is perceived to have lot more opportunity in the future but how to get survives in this competing environment is also another crucial part for all the companies. Stopping your pace in a second may be a good time for your competitors to take over you. Thus, there is no permanent success factor behind, the only lasting method is to keep on improve and alert with the changing of environment.



Due to the time constraint, I am not able to further discuss the success factors behind Amazon.com. However, you may always go to the link below to have a further understanding on it. Or you may just “google” it from the internet.

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Related links:

http://www.cbsnews.com/stories/2005/07/05/tech/main706351.shtml


http://www.cheathhouse.com/essay/essay_view.php?p_essay_id=125558


http://www.goodexperience.com/blog/archives/000192.php









1 comments:

c4ever commerce said...

Those e-commerce failures should refer Amazon as an example..

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