E-Commerce Models

Amazon.com has created an e-business model that works and based on the way they created the model, it is no surprise that the model works, but it works well. The business model that Amazon created works because Amazon designed the perfect partnership between e-business and content. The way Amazon set up their website allows Amazon’s affiliates to use the content as a tool to create demand for almost everything that they sell.

Amazon started as a business-to-customer online retailer of books. This allowed Amazon to remain in touch with its consumers directly. Throughout the years Amazon has continued to strive as an e-commerce business-to-customer retailer while adding new products and trying to keep the cost to the customers down. Although Amazon worked hard to reduce prices, the retailer's focus on customer service was more important than increasing profits. “Amazon's expertise in forecasting customer demand has led to faster deliveries of new titles, which adds to customer satisfaction and repeat purchases. Amazon continues to improve its data mining and content delivery techniques to improve and personalize its experience, which results in increased purchases” (“Amazon proves B2C” 2002.)

According to the U.S. Department of Commerce 90 percent of e-commerce conducted in 1999 involved online business-to-business deals (Enos, 2001). Just a couple of years after these results Amazon decided to test the waters themselves in the e-commerce business-to-business initiative. This is when Amazon announced that it would open a new division catering to corporations, libraries, and other institutional buyers (Enos, 2001). With Amazons constant and consistent plans to improve and expand they have be able to stay on top.

References

http://www.computerweekly.com

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