Amazon.com ( World’s leading E-commerce platform)
amazo.com Story Video by Jack Chapple
Amazon.com, Inc. is a technology based company whose headquarters is based in Seattle, USA. It’s primary sector of contributions are e-commerce, digital video streaming, cloud computing, AI systems. It considered as one of the top 4 companies in the world which includes elite group of companies such as Google, Facebook, and Apple.
Amazon is reputedly known for its technological outputs, innovation and creativity. It’s world leading company in AI systems, Cloud computing, eCommerce. It’s world largest internet based company in the world in terms revenue generation. It’s also world’s second largest company in technological sector.
Amazon was started in July 5, 1994 by Jeff Bezos in Belleveu. Amazon started first by selling books online and later it started selling in other categories as well such as electronics, clothing, Food, accessories and others. It’s considered as world’s biggest retail market place in terms of revenue generation.
Jeff Bezos started 2 days delivery service in 2018 and also introduced Amazon prime which has crossed over 100 million subscribers in the world.
It also has world’s most popular book storing and reading device called kindle which has access to millions of books in the world. Amazon web services no doubt one of the most biggest and popular in the world. Company has been criticized various times for tax avoidance, mal practices and breach of data policies etc.
Jeff Bezos chose Seattle as head office because Microsoft is located there which would help him to gain technical talents easily. After 3 years of Operation, Amazon decided to go Public in 1997. It started selling music albums, books, electronics, toy, home appliances.
After 8 years of operation Amazon introduced its new project Amazon Web services which provided web analytics such as data, traffic, stat for developers. In 2006 it introduced another services Amazon Cloud computing which provided access to processor and also provided storage service which help storing website data using internet. It also brought Kiva Systems to improve its inventory service.
Jeff Bezos is the Chairman/Founder/President for Amazon.com, Inc
Other Board of Directors for the Amazon are
There are total 11 Board of Directors for the Amazon Including the President Jeff Bezos
- Jamie Gorelick
- Jon Rubinstein
- Tom Alberg
- Daniel P. Huttenlocher
- Judy Mcgrath
- Indra Nooyi
- Rosalind Brewer
- Wendell P. Weeks
- Patty Stonesifer
- Thomas O. Ryder
After 6 years of establishment Amazon tied up with the toy retailer Toys R Us for 10 years. The deal was done for $50 million dollars per year. Toys R was provided exclusive right to sell on Amazon and Toys Rs website was redirected to Amazon Toy Category. In 2004 Toys R slammed a case upon Amazon for allowing other sellers sell in the category and It was awarded $51 million USD as compensation.
Amazon also tied up with Broaders.com in 2001 which would allow Amazon to co-manage Broader.com but later broader pulled out and said it has plans of launching its own online store
It has also tied up with DC comics to allow Amazon sell few comics exclusively on Amazon but it made several other book publisher unhappy.
In November 2013 Amazon tied up with Postal Services in United States to deliver orders on Sunday. It tied up to deliver on timely way and to manage high order volume and delivery speed.
Recently Nike offered partnership to sell its products directly on Amazon.
Amazon Fresh sold several Brands from Booth
Amazon joint Ventured with Patni Group in 2017 and made record online sales of Rs 759 crores INR in 2017.
It also tied up with apple to allow apple authorized seller to sell on Amazon directly from Jan, 2019
Products and services
Amazon.com has separate product categories which can be found in their website which includes Apparels, Books, Electronics, Home Appliances, Accessories, Food, Machineries, Video, Web services. It also offers international shipping to various location and has it’s branch at several locations as well
Amazon.com has various products such as
- Amazon Prime Videos
- Amazon Fresh
- Amazon App store
- Amazon Web Services
- Fire TV
- Amazon Storage
Amazon has about 40 subsidiaries Branches worldwide.
It focused on building new technology and focuses on innovation and research and it has been part of Amazon since 2009
It manages it own shipment from China Mainland to United States of America.
It became part of Amazon in 2007 and has been producing audio contents for Amazon since than.
Beijing Century Joyo Courier Services
It works for Freight forwarding in collaboration with various agencies.
It has been producing 12-15 audio titles for Amazon since 2007 and has been leading in its category since then
It produces digital comics and Novels for various devices and platforms such as Android, IOS, Windows and several web browser. It as bought by Amazon in 2014 April
Create space provides publishing platform for individuals publishers. You can upload or publish creative content on create space.
It will be bought by Amazon in 2019, the company produces Mesh Routher.
It’s a platform where you can create your own library of books and create a pleasant online library for yourself.
It produced a product like Kindle and became part of Amazon.
It became a part of Amazon to provide broad Band services to worldwide customers at affordable rates
It produces doorbells which works using Wi Fi. It was bought by Amazon for whooping 1 billion USD.
In this website books are being catalogued or being used as virtual book shelves. Amazon merged Good reads and Shelfari and closed Shelfari.
It’s biggest ecommerce platform in the Middle east and work as a part of Amazon for Middle east.
Amazon has various Fulfillment Network and Hubs for management of its supply chain Network. Around 125000 people work at its Sorting and Fulfillment center. Employee Basically Inspect, Sort and Dispatch the order at its Fulfillment center. It has decent tracking system track its delivery.
Amazon.com had annual traffic of 615 million in 2008 and it increased to 130 million by 2016 domain. It has huge server for handling heavy traffic coming annually on Amazon.com website.
Amazon website has in following countries
United Arab Emirates
Amazon lets you provide reviews to their product and helpful and relevant reviews are posted in front page of the product page. It also indicates whether review has been given by a genuine customer or not. It has millions of reviews which will help you to choose product wisely and easily. Amazon gives you a genuine buying opportunity.
You can search using any title in Amazon. It allows you to search various books using almost 120000 titles or 33 millions of text titles. Amazon has collaborated with publishers all over the world to allow user friendly content search interface for its user.
It produces search result in terms of image rather than directly producing text results to protect copyright of the publishers.
Amazon has been generating majority sells using third party seller who are scattered all over the world and famously known as Amazon affiliates. Affiliates get commission for selling Amazon product or referring it to the prospective customer. Affiliates are working millions from Amazon via Affiliate commission and marketing.
Amazon.com sales rank
For example a product which is being sold at Amazon is given a sales rank on the basis of revenue or the number of sales generated per hour. It is standard indicator for the popularity of product being sold on Amazon. Amazon maintains saying it’s just a guide not a definitive sales information. Many company have close eye upon the Amazon sales rank and take it as the indicator to choose product for sales.
Multi-level sales strategy
Amazon has multi level strategy which focuses on B2C and B2B business. Amazon let’s you sell almost everything on its platform except illegal products. Amazon allows affiliates allow you sale it’s product and earn commission and also it has build a nice platform to help drop shippers. The condition is only that all the sales are processed through amazon.com and each official sales recorded has benefits or commission. Amazon has recently started opening physical store to facilitate it’s customer who prefer offline shopping. For example it has opened physical book store in Seatle which is 5500 sq ft and has plans to role out many more soon as per the increasing demand coming from its website.
Amazon.com has been generating revenue from the sells commission that it takes from the seller for selling their product. It has fixed commission percentage system. The commission varies from category to category. It also generates revenue through ads that it runs for it various sponsored products on the platform. It has been ranked 8th in the top 10 fortune companies of the world.
Amazon has been facing several controversies as well like data selling, privacy breach. Exploiting of warehouse labors and not maintaining proper standards. It has been facing recent criticism of aligning with CIA and also for it’s face detection projects.
Amazon has been opposed from a group of community for construction of logistics platform as the project didn’t seem to be in welfare of the community creating adverse affect on environment more than it’s positive impact. The project has been stopped and has been asked to justify its environmental adversity.
Selling counterfeit items
Amazon has been facing criticism off late for selling counterfeit products on it’s platform and several companies has filed lawsuit against it claiming the infringement.