Amazon Business Model Analysis: innovation business model
What is Amazon business model? Here are Amazon business model analysis and strategies that can be case study for you to develop your own e- commerce business. Amazon.com is design to make sure that all its consumers are satisfied through comfortable processes. This company can initiate consumers to the new service of online shipping by managing the quality of online shipping and customers at this stage become less anxious.
While Amazon still sells books as its business model and strategies, and lots of them, they now expand their niche market by selling really million products. It means that losing money is over as Amazon now makes money hand over fist.
Amazon business model and strategy is similar to Ebay.com but it is different because Amazon makes unique edge over its competitors. Amazon website will create listings of the items that they have for sale and those items will then go live on the Amazon website. The items will stay up for as long as it takes for the items to sell, or until the seller decided that they want to manually delete the items for sale.
The main concept of Amazon business model and strategy is on how Amazon makes money by taking a small percentage of the sale price of each item that is sold through its website, sort of like a commission. So you only have to pay on Amazon when something sells.
The simple Amazon business model allows this company to make system of computing-hungry start-up than can make expensive capital equipment investments by buying their own servers or can lease the processing power they need when they need it at a very low cost leasing a full years of power equivalent to one server.
The simplicity of Amazon business model has allowed Amazon to take their business to the next level with innovation business model. Amazon handles the payment; all the individual has to do is pitch their item. The Amazon business model case study teaches us that world-wide market place gives Amazon automatic access to literally thousands of items that it does not have to spend money on processing of outsourcing business models.
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