Amazon

Amazon started as an e-commerce book site and has now added music, toys, electronics, software and clothes to its list of product offerings.

1. What are the advantages and disadvantages of selling books and goods over the internet?

There are many advantages and disadvantages to selling books and goods over the internet; some are:

Advantages

    * Allows small companies to compete with other companies both locally and nationally.

    * Creates the possibility and opportunity for more diverse types of individuals to start a business.

    * Offers a convenient way of doing business transactions, with no restrictions on hours of operation.

    * Offers an inexpensive way for small firms to compete with larger companies by their products available worldwide.

    * Provides higher revenues for small companies using the Internet.

Disadvantages

    * Need to manage upgrades.

    * Need to assure Web site security.

    * Avoid being a victim of fraudulent activities on-line.

    * Cost required to maintain a site.

    * Difficulty finding qualified consultants.

    * Difficulty finding and retaining qualified employees.

    * No market for old computers.

2. If books can be downloaded online, how will Amazon's business change?

Amazon is a huge organism that is in constant evolution, along with its active CEO, Jeff Bezos.  Amazon currently sells eBooks, and in addition has created a new product called, Kindle. It is an electronic reader where users can buy a book and have it electronically transmitted to their Kindle in seconds using a wireless system.  If (currently) books are solely or primarily downloaded online, Amazon will lead the way of the future in the world of books of which it was founded.

3. What do traditional stores have to gain from setting up an e-commerce side to complement their retail stores?

Traditional stores have much to gain from setting up an e-commerce site to compliment their retail...