E-Commerce at Amazon Essay Example
Amazon and eCommerce free essay example
If there were untapped business opportunities, then E-Commerce could be one of them. Many companies that have discovered the secrets of E-Commerce have had their profits soaring quarter after quarter. On the stage is the Amazon.com that has successfully emerged as a giant in E-commerce. This paper evaluates and examines advantages and disadvantages of selling books online that Amazon.com has expediently. It further assesses the aftermath when and if books will be downloaded online.
E-Commerce at Amazon.com
Internet and telecommunications have truly shrunk the world into a global village. This phenomenon has enabled many entrepreneurs like the Amazon.com to go E-commerce/online. However with this giant step forward, there are accompanying challenges, advantages and disadvantages including extreme fraudulence and online criminology for the reason that internet is everything and everything is internet. This is so far the best competitive tool companies are using to edge others out. The advantages that have favored Amazon.com include; reduced marketing and advertising costs hence equal competition with other bigger companies, it has enabled customers to shop online at their own convenience right from the comfort of their homes and anywhere. E-commerce has enabled Amazon.com to reach all people around the world but those who access the internet. It is easier to get instant book reviews from customers from anywhere. Book sellers and authors have drastically reduced shipping costs, order processing costs and inventory costs. They have also eliminated middlemen thus directly reaching customers around the world. All these advantages translate to higher profits as (Fox 2006) concurs that, “The evolution of e-commerce offers major profit opportunities because Internet lets people communicate more easily than was possible in the 20th century”. The advantages are numerous compared to the demerits. But a few demerits are encountered but with higher magnitudes, for instance payment modes may be infiltrated by fraudsters and other criminals. However, advancement in payment technology has to a higher degree secured online payment.
Amazon has ventured into other online businesses like selling clothes, toys and the latest one of selling perishables/groceries online, of which many companies have failed to take off. This venture has elevated Amazon to the highest niche with ever soaring profits in every passing financial quarter. In case the worst happens, that is downloading books online, Amazon profits will drop but being an online company that has established it will only alter a few strategies to keep selling all downloadable books for and to their customers. However, Amazon will emerge unaffected if books are downloaded online because it has ventured into selling other products as (Doherty 2007) notes, “Amazon has a strong reputation and brand recognition goes a long way”. The moment books will be downloaded from the internet, Amazon will be safe because it has ventured into selling other products online and therefore the impact will be cushioned.
Traditional stores perceptibly must move a notch higher if they go E-Commerce because they will reach millions of customers, they will compete with other companies on a level ground, reduce their workforce, and use little resources in advertising and marketing hence this translates to higher profits.
Every bit of E-commerce is gaining popularity because companies have opted to sell their products online to gain the competitive advantage over others and increase profits. Amazon has set the right pace for E-commerce and in fact it has been a role model.