Amazon Case Study

Amazon

Online Shopping Trends

In the 1999-2000 periods, consumer satisfaction with e-commerce was limited. Due to this online shoppers went online, purchased what thet wanted and never returned because their expectations were not met. The actual number of people shopping actively online in the United States of America (USA) declined at the end of 2000 and continued to fall through the first half to three-quarters of 2001. In 2002, there was a pickup in growth, and each quarter saw improvement from the previous one. These companies were developing a completely new business model, and they had to learn how to improve online service. In the USA, about 65 million households are online today. Between 25 million and 30 million households are buying online. This suggests there will be about a 20 percent to 25 percent growth in e-commerce, driven by non-online shoppers becoming online shoppers, as well as those who already buy online and continue to expand their online purchasing quantity. Over the next 5 to 10 years, some experts expect that online sales could reach at least 10 percent of the total e-commerce revenue. (Gilpin, 2003)

Related pages in the M/Cyclopedia:

1. Online Shopping - History

2. The Rise of Online Shopping

3. Online Shopping - Disadvantages

4. Online Shopping - Benefits for Sellers

5. Online Shopping - Security

6. ECommerce - Audience Size]

7. Online Retail

What is Amazon.com?

Amazon.com, one of the pioneers of e-commerce, was launched by Jeff Bezos in 1994. Bezos’ initial plan for Amazon.com entailed a service that provided customers with access to an extensive selection of books, while eliminating the hassles for Amazon.com, associated with the time and expense required to build physical stores and warehouses, to purchase and house inventory (Hamilton, 2004, pp.42-46).

Related pages in the Wiki:

1. Online Shopping - Amazon.com

The History and Present Day of Amazon.com

Jeff Bezos and Amazon.com did not...