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Amazon

← Birth and Death Rates in LondonAudience Analysis →

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The Internet has transformed the manner in which business currently operates; it has led to a new segment for new industry in the business arena. Amazon.com is the first company to exploit the Internet for a successful business model. Doing business on the Internet has turned Amazon.com into a pure-plays-pure online retail hulk.   Amazon.com began as an online bookseller, but presently it has over 12 million loyal clients in over 160 countries. By running B2B (Business-to-Business) and B2C (Business-to-Consumer) business models, in 2009 Amazon.com earned a revenue of $19.166 billion. The dotcom which started in 1995 is now a Fortune 500 company and a global spearhead in e-commerce.

B2C

This Fortune 500 Company uses a B2C model by directly offering a wide variety of products, extending from electronics to hardcover books to jewelry, as appropriately as thinkable to its customers (About Amazon, 2009). Amazon has started to revolutionize retailing. To save its customers from the troublesome of walking from one aisle to aisle, struggling with traffic, looking for parking spots and queuing in stores finding items to purchase, Amazon has made people to buy online at their convenience and have their purchased items dropped at their doorstep.

B2B

Amazon.com is the number one retailer of online merchants. It accounted for 8% of all U.S. online retail sales in 2006. It is also a prominent online merchant in the United Kingdom, China, and Canada. The company has achieved this success by innovatively employing the B2B business model. For one, Amazon as a business buys its selling items from manufacturers and publishers and resells them through its websites. Secondly, Amazon has hundreds of thousands of independent web publishers who display Amazon’s items and books on their websites, when people make purchases through those sites Amazon pays these publishers a commission. Thirdly, Amazon allows individual sellers and businesses to set their mini-sites on its main website; Amazon.com gets a commission when these individuals and businesses make sales through its website.

Conclusion

Amazon is further enhancing its B2B by partnering with local online retailers across the world. The company is expanding its presence in Canada by consorting with Canada’s leading On-Demand e-Commerce making Amazon.com to have simple and convenient way to easily order items online. The success of the company can be accounted on persistent innovation and its ensuring that its customers are satisfied wherever they make a purchase from the company. This in turn ensures that the company has a big number of loyal customers who repeatedly buy from the company as they market the company through referrals.

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