PRINCIPLES OF MARKETING

ASSIGNMENT: AMAZON (ECOMMERCE STORE)

SUBMITTED TO: MA`AM ALIYA KANWAL

SUBMITTED BY:
NASEEM ASHRAF (653)
HADIA (655)
 Learning Outcomes

 Ecommerce and its types

 Ecommerce Website / Storefront
 Methods of conducting ecommerce
 Advantages & Disadvantages of ecommerce
 Ecommerce trends and statistics

 Amazon
 Founding / History
 2000s Era And Amazon Logo
 2010s to Present
 Business Models On Amazon
 Amazon Statistics
 Ecommerce

Ecommerce, also known as electronic commerce or internet commerce, refers to the buying and
selling of goods or services using the internet, and the transfer of money and data to execute
these transactions.

Online shopping evolves and shifts daily. People shop from their computers, phones, tablets,
and other devices. They patronize websites, visit social media pages, and participate in thriving
virtual channels.
 Types

 B2C – Businesses sell to individual consumers (end-users). The most common model
with many variations.

 B2B – Businesses sell to other businesses. Often the buyer resells products to the
consumer.

 C2B – Consumers sell to businesses. C2B businesses allow customers to sell to other
companies.

 C2C – Consumers sell to other consumers. Businesses create online marketplaces that
connect consumers.

 B2G – Businesses sell to governments or government agencies.

 C2G – Consumers sell to governments or government agencies.

 G2B – Governments or government agencies sell to businesses.

 G2C - Governments or government agencies sell to consumers.

 Ecommerce website
An ecommerce website is digital storefront on the internet. It facilitates the transaction between
a buyer and seller. It is the virtual space where one showcases his products, and online
customers make their selections. The website acts as the product shelves, sales staff, and cash
register of ones online business channel.
 Methods of conducting ecommerce

M-commerce:

Online transactions that take place on mobile devices are known as mobile commerce or ―m-
commerce.‖ With portable devices in the hands of consumers worldwide, it's no wonder m-
commerce is expected to overtake non-mobile commerce in 2021.

Many people now do their product research and online purchasing through their phones. This
trend shows no signs of slowing, so it’s essential to optimize your online store for mobile.

Enterprise ecommerce:

Enterprise ecommerce is the buying and selling of products to large companies or

organizations. If a large business sells many different types of products or has multiple brand
lines and transitions into selling online, then it is participating in enterprise ecommerce.

Social media ecommerce:

Social media can help you market and promote ecommerce stores to a broad audience. Just as
social media enables you to connect with friends and family, it also has the potential to attract
customers to your business. Done well, social media marketing engages customers in an
informal setting.

Social media can help you:

 Attract new customers

 Build brand awareness

 Generate online sales

 Advantages of ecommerce

Conducting sales online has some significant advantages. Among the top benefits, ecommerce:

 Is growing rapidly

 Offers global marketing reach

 Provides the ease of ordering products online

 Generally involves lower operating costs

 Gives direct-to-consumer access

 Disadvantages of ecommerce
Despite a lot of advantages, ecommerce does have downsides. Some businesses may try to
avoid ecommerce due to challenges like:

 Limited face-to-face interaction

 Technical difficulties

 Data security can be a challenge

 Shipping and fulfillment at scale

Ecommerce trends and statistics

The tidal waves of online retail sales in recent years shows no sign of receding, and are
projected to grow to $6.54 trillion in 2022.

Holiday sales:

During the 2020 holiday season—including Black Friday to Cyber Monday—independent

businesses selling on Amazon gained over 50% year-over-year growth in worldwide sales.
 Amazon

Amazon.com, Inc. is an American multinational technology company which focuses on e-

commerce, cloud computing, and digital streaming. It has been referred to as "one of the most
influential economic and cultural forces in the world", and is one of the world's most valuable
brands.

Founding

Amazon was founded by Jeff Bezos from his garage in Bellevue, Washington, on July 5, 1994.
Initially an online marketplace for books, it has expanded into a multitude of product categories:
a strategy that has earned it the moniker The Everything Store. It has
multiple subsidiaries including Amazon Web Services (cloud computing), Zoox (autonomous
vehicles), Kuiper Systems (satellite Internet), Amazon Lab126 (computer hardware R&D). Its
other subsidiaries include Ring, Twitch, IMDb, MGM Holdings and Whole Foods Market.

The company was created as a result of what Jeff Bezos called his "regret minimization
framework" – to avoid regretting, in his old age, not having tried to participate in the emerging
internet with his own startup. In 1994, Bezos left his job as a vice president at D. E. Shaw & Co.,
a Wall Street firm, and moved to Seattle, Washington, where he began to work on a business
plan for what would become Amazon.com.

On July 5, 1994, Bezos initially incorporated the company in Washington state with the name
Cadabra, Inc.[7] After a few months, he changed the name to Amazon.com, Inc, because a
lawyer misheard its original name as "cadaver". Bezos selected this name by looking through a
dictionary; he settled on "Amazon" because it was a place that was "exotic and different", just as
he had envisioned for his Internet enterprise. The Amazon River, he noted, was the biggest river
in the world, and he planned to make his store the biggest bookstore in the world. Additionally, a
name that began with "A" was preferred because it would probably be at the top of an
alphabetized list.
 2000s Era And Amazon Logo

Since June 19, 2000, Amazon's logotype has featured a curved arrow leading from A to Z,
representing that the company carries every product from A to Z, with the arrow shaped like a
smile.

According to sources, Amazon did not expect to make a profit for four to five years. This
comparatively slow growth caused stockholders to complain that the company was not reaching
profitability fast enough to justify their investment or even survive in the long term. In 2001,
the dot-com bubble burst destroyed many e-companies in the process, but Amazon survived
and moved forward beyond the tech crash to become a huge player in online sales. The
company finally turned its first profit in the fourth quarter of 2001: $0.01 (i.e., 1¢ per share), on
revenues of more than $1 billion. This profit margin, though extremely modest, proved to
skeptics that Bezos' unconventional business model could succeed.

Amazon Toys Team employees circa 2000 during a summer Amazon party. Jeff Bezos is wearing the black
shirt.
 2010s to present

In 2011, Amazon had 30,000 full-time employees in the US, and by the end of 2016, it had
180,000 employees.

In 2014, Amazon launched the Fire Phone. The Fire Phone was meant to deliver media
streaming options but the venture failed, resulting in Amazon registering a $170 million loss.
This would also lead to the Fire Phone production being stopped the following year. In August of
the same year, Amazon would finalize the acquisition of Twitch, a social video gaming
streaming site, for $970 million. This new acquisition would be integrated into the game
production division of Amazon.

In June 2017, Amazon announced that it would acquire Whole Foods, a high-
end supermarket chain with over 400 stores, for $13.4 billion. The acquisition was seen by
media experts as a move to strengthen its physical holdings and challenge Wal-Mart’s
supremacy as a brick and mortar retailer. This sentiment was heightened by the fact that the
announcement coincided with Wal-Mart’s purchase of men's apparel company Bonobos. On
August 23, 2017, Whole Foods shareholders, as well as the Federal Trade Commission,
approved the deal. In June 2017, Amazon announced that it would acquire Whole Foods, a
high-end supermarket chain with over 400 stores, for $13.4 billion. The acquisition was seen by
media experts as a move to strengthen its physical holdings and challenge Wal-Mart’s
supremacy as a brick and mortar retailer. This sentiment was heightened by the fact that the
announcement coincided with Wal-Mart’s purchase of men's apparel company Bonobos. On
August 23, 2017, Whole Foods shareholders, as well as the Federal Trade Commission,
approved the deal.

Business Models On Amazon

 Retail/Online Arbitrage

 Private Label

 Kindle Publishing

 Merch By Amazon

 Amazon Associates

 Information Products

 Blogging

 Drop Shipping
 Amazon Statistics

 Amazon receives more than 200 million unique visitors per month.

 There are over 150 million Amazon Prime members.

 In 2020, small- and medium-sized businesses in the U.S. sold more than 3.4 billion
products on Amazon, up from 2.7 billion year-over-year.

Prime Day

Amazon designed Prime Day 2020 to provide buyers with impressive savings and support small
businesses by helping them connect with more customers and grow sales.

COVID-19 drives ecommerce growth

The COVID-19 pandemic has disrupted daily life and changed the way we shop. More people
are purchasing their goods online: Ecommerce saw a 30% surge in 2020, and the impact of this
shift to online purchasing will likely be long-lasting.