INTRODUCTION E-Commerce or Electronic Commerce means buying and selling of goods, products, or services over the intemet, E-commerce is also known as electronic commerce or internet commerce. These services provided online over the intemet network. Transaction of money, ‘commerce. The standard definition of funds, and data are also considered as E- commerce is a commercial transaction which is happened over the intemnet. Online stores like Amazon, Flipkart, Shopify, Myntra, EBay, Quikr, and Olx are examples of E-commerce websites. Iq to an ja to | toTherefore, E-commerce is a popular term for electronic commerce or even internet commerce, The name is self-explanatory; it is the meeting of buyers and sellers on the internet, This involves the transaction of goods and services, the transfer of funds and the exchange of data1.1 BACKGROUND E-commerce originated in a standard for the exchange of business documents, such as orders, or invoices, between suppliers and their business customers. ‘Those origins date to the 1948— 49 Berlin blockade and airlift with a system of ordering goods primarily via telex. Various industries elaborated upon that system in the ensuing decades before the first general standard ‘was published in 1975, The resulting computer-to-computer electronic data interchange (EDI) standard is flexible enough to handle most simple electronic business transactions.With the wide adoption of the Internet and the introduction of the World Wide Web in 1991 and of the first browser for accessing it in 1993, most e-commerce shifted to the Intemet, More recently, with the global spread of smartphones and the accessibility of fast broadband connections to the Internet, much e-commerce moved to mobile devices, which also included tablets, laptops, and wearable products such as watches. E-commerce has deeply affected everyday life and how business and governments operate. Commerce is, conducted in electronic marketplaces, aay coy 1.2 IMPORTANCE OF E COMMERCE E-commerce business is the best option available for the people to build a better business world for insuring success in future rather than doing a traditional mode of business. For any business person, to have an e-commerce business is added advantage for their business. Several factors for the importance of ecommerce business:- L.Convenience-Sometimes, the question arises that why do you use e-commerce website foronline shopping? The most prominent answer to this question is convenience. One person can shop, buy and sell products while sitting at home at anytime. 2.Round_the clock serviee-E-commerce provides us round the clock services at all timeseven in midnight. So the customers do not require visiting a physical market if they need something during the night, It is the most convenient option for the people who are usually busy with their working schedules. So it helps you to be available for your customer 24*7.pO ar a 3 je Platform-E-commerce brings a wide range of customers across the nation or globe toyour business. Therefore, it is a wise choice to choose an e-commerce platform to cross the geographical barriers for your business. 4.Business_promotion-E-commerce is directly link to your business promotions, as it is theage of digital media, Making your business available online is crucial to your business development such as, highly convenience, wide exposure, global customer, easy to run, etc, and it will help in creating a strong & global brand image for your business. S.Lesser_cost-the inventory management of goods and services is an automated process thennot only there will be a reduction in costs, but also in risk. Also having an ecommerce business is much more cost effective than a physical store as it saves your extra expenses like rent, electricity, ete 6.Easy setup-The setting up cost of e-commerce business is extremely low as compared tosetting up of a physical shop. Moreover, it is quite easier to license and permit e-commerce ‘marketing site than a physical shop.Serre eons sopana crt Y, emsanton | EERE {ya |== tei= 7.Economy-As,there is no investment in terms of infrastructure or insurance in thee commerce business, more money can be invested in the products, strategy & promotion. It will boost your marketing strategies and thus can also increase the traffic on your e- commerce website. 8.Better_product information-Most e-commerce websites have detailed information of theirproducts along with the images & videos for product demonstration. It helps in customer getting a clear image of the product & its usability. 3% Os ne!1.3 NEED OF THE STUDY Nowadays retail stores are facing more competition in retailing business.Online shopping was not so well known in India when the e-commerce gaint amazon entered in the market, Was amazon able to reach the customers initially when there was already flipkart leading in the indian market. This study explores the strategies used by Amazon to succeed in indian market 1.4 BRIEF REVIEW OF LITERA’ Some preliminary works on e-business and banking have been made through using data analysis. This literature review was also conducted to help put the research methodology in a better conceptual framework, In this regard the review focused on: the evolution and definition of e-business; processes of e-business adoption; benefits, barriers and challenges to e-business adoption. E-Business probably began with electronic data interchange in the 1960s (Zwass, 1996). However, (Melao, 2008) suggests that it was only in the 1990s, primarily via the Internet, that e-Business has emerged as a core feature of many organizations. In his opinion, the hope was that e-Business would revolutionize the ways in which organizations interact with customers,Employees, suppliers and partners. Some saw e- Business as part of a recipe to stay competitive in the global economy. The term “e-Business” has a very broad application and means different things to different people. Furthermore, its relation with e-commerce is at the source of many disagreements. (Melao, 2008). A more comprehensive definition of e-business is: “The transformation of an organization’s processes to deliver additional customer value through the application of technologies, philosophies and computing paradigm of the new economy.” In a simple sense, E-Business can be defined as, “the organized effort of individuals to produce and sell, for profit, products and services s that satisfy society’s needs through the facilities available on the Internet” (Brahm Canzer, 2009) Some authors view e-Busine as the evolution of e- commerce from the buying and selling over the Intemet, and argue that the former is a subset of the latter.( Turban et al., 2006). Others defend that, although related, they are distinct concepts (Laudon and Traver, 2008), Others use both terms interchangeably to mean the same thing (Schneider, 2002). (Kalakota and Robinson, 2000) proposed a definition of e-business that clearly stresses the difference between e-commerce and e-business. More precisely they assume that “e-business is not just about e-commerce transactions or about buying and selling over the Web; it is the overall strategy of redefining old business models, with the aid of technology, to maximize customer value and profits”. Kalakota and Robinson’s definition is of great importance because it describes e-business as an essential business-reengineering factor that can promote company’s growth. ‘The article published by Rahmath Safeena, Hema Date and Abdullah Kammani in January 2001, states that, the various areas where the banks are preparing to use e-business approach include familiar and relatively mature electronically based products in developing markets, such as telephone banking, mobile banking, credit cards, ATMs, and direct deposit. This ‘means that most of the banks have recognized the need to change their business process to conform to changing business trends in order to keep up with competition, According to Basu and Muylle (2007), companies can gain two fundamental types of benefits from e-Business. These are generally described as: Value Creation or Value Enhancement for one or more of a company’s stakeholder groups; and Lower Cost of providing goods and services to the market place, Examples under Value Creation include Improvement in internaland extemal communication through effective e-marketing, Increment of sales through an ¢- commerce website integrated with a back office systems and Improvement in supplier relations and productivity through collaborative workspaces (Basu and Muylle, 2007). And examples under Lower ost are: reduction in communication and travel costs using online ‘meeting tools; shared workspaces and; benefit from license free open source alternatives to proprietary software. According to Windrum and Berranger (2002 ) it is hypothesized that many of the factors affecting the successful adoption of new technologies such as e-business are generic in nature and that the successful adoption of internet technologies in part depends on how these are used in conjunction with the other technologies and management practices that form a “technology” cluster. Many writers of e-Business and e-commerce extol the enormous potential and opportunities provided for consumers and businesses globally. However there are some drawbacks and the benefits to be derived tend to be overstated, Many managers and investors are facing strong, pressure to answer the question of whether and how e-business investments create business value, because it is not clear to them how this value is ereated, and what are the factors that shape that value, also which of them are most important (Alawneh A. and Hattab E 2009), 1.5 OBJECTIVES My project comprises of the follo ing objectives: © To give a brief idea about the benefits available from e commerce © To discuss about the various business model of Amazon.Ine. an ¢ commerce company in the e commerce industry. © To study how Amazon.Inc company create a revolution in the world of € commerce as well as in digital world. © Identifying the list of E-commerce strategies developed by the company regarding its intensive growth, generic strategies and user referen © Identifying Supply Chain Management strategies. © Identifying what are the more steps to be taken by the company in the coming future.1.6 METHODOLOGY Since Amazon is an international E-commerce website for selling and buying goods and products, so it is not possible to interview the developer. So, I basically used informal way for carrying out our research with the following steps to gather the information: a) First of all, we read the available paper and documents of researc on Amazon done by others and noted some key points such as areas of business, adopted strategies, adopted business models ete. b) [also watched some videos based on customer and merchant reviews as well as videos explaining the working of Amazon and its strategies c) Finally, I cross checked the gathered information from the Amazon website and also target for getting more information regarding the services it provides currently, how it maintains its supply chain, ete. 1.7 LIMITATIONS © The study suffers from the following limitations: © The study depend only secondary data. © The study is limited to the only 1 company or player in the entire industry ; deriving conclusions about the entire industry based on the performance of only one component may not be considered justifyable. © The study is also limited to our research model its self. © The lack of information sources for the analysis partCONCEPTUAL FRAMEWORK 2.1 CONCEPT OF E-COMMERCE E-commerce is a popular term for electronic commerce or even internet commerce. The name is self-explanatory, it is the meeting of buyers and sellers on the internet. This involves the transaction of goods and services, the transfer of funds and the exchange of data. So when you log into your Amazon and purchase a book, this is a classic example of an e-commerce transaction, Here you interact with the seller (Amazon), exchange data in form of pictures, text, address for delivery etc. and then you make the payment. ‘As of now, e-commerce is one of the fastest growing industries in the global economy. As per one estimate, it grows nearly 23% every year, And it is projected to be a $27 trillion industry by the end of this decade.Examples of E-Commerce: © Amazon © Flipkart * EBay Advantages of E-Commerce: ‘+ E-commerce provides the sellers with a global reach, They remove the barrier of place (geography), Now sellers and buyers can meet in the virtual world, without the hindrance of location. ‘© Electronic commerce will substantially lower the transaction cost. It eliminates many fixed costs of maintaining brick and mortar shops. This allows the companies to enjoy a ‘much higher margin of profit. It provides quick delivery of goods with very little effort on part of the customer. Customer complaints are also addressed quickly. It also saves time, energy and effort for both the consumers and the company. ‘© One other great advantage is the convenience it offers. A customer can shop 24%7. The website is functional at all times, it does not have working hours like a shop. Al . Fl tronic comment ¢ also allows the customer and the business to be in touch directly, without any intermediaries. This allows for quick communication and transactions. It also gives a valuable personal touch.ORC ee ty Allows customers to order and pay for goods HAT ARE THE cover the internet POTTY «fester end more efcient communication ahcomes E-COMMERCE? ate achous doy] doyso meek Nortel gots gel Opens up new mare's. For ecampl you can Disadvantages of E-Commerce: + The start-up costs of the e-comme portal are very high. The ctup of the hardware and the software, the training cost of employee: the constant maintenance and upkeep are all quite expensive, ‘© Although it may seem like a sure thing, the e-commerce industry has a high risk of failure, Many companies riding the dot-com wave of the 2000s have failed miserably. ‘The high risk of failure remains even today. © At times, e-commerce can feel impersonal. So it lacks the warmth of an interpersonal relationship which is important for many brands and products, This lack of a personal touch can be a disadvantage for many types of services and products like interior designing or the jewellery business. © Security is another area of concern, Only recently, we have witnessed many security breaches where the information of the customers was stolen. Credit card theft, identity theft etc. remain big concerns with the customers, © Then there are also fulfilment problems. Even after the order is placed there can be problems with shipping, delivery, mix-ups ete, This leaves the customers unhappy and dissatisfied.Disadvantages of E-commerce z=. 2.2. TYPES OF E-COMMERCE ‘The following are the different types of e-commerce platforms: 1. Business-to-Business (B2B) 2. Business-to-Consumer (B2C) 3. Consumer-to-Consumer (C2C) 4, Consumer-to-Business (C2B) 5. Business-to-Admi stration (B2A) 6. Consumer-to-Administration (C2A)ercommerc ‘Commerce _ ‘oe’ 5 Types of € Commerce Cassticaton O99 Business-to-Business (B2B) ‘A B2B model of business involves the conduct of trade between two or more businesses/companies. The channels of such trade generally include conventional wholesalers and producers who are dealing with retailers.Business-to-Consumer (B2C) Business-to-Consumer model of business deals with the retail aspects of e-commerce, i.e, the sale of goods and/or services to the end consumer through digital means. The facility, which has taken the business world by storm, enables the consumer to have a detailed look at their proposed procurements before placing an order. Afier the placement of such orders, the company/agent receiving the order will then deliver the same to the consumer in a convenient time-span, Some of the businesses operating in this channel include well-known players like Amazon, Flipkart, ete, This mode of purchase has proved to be beneficial to the consumers when compared to the traditional method, as they are endowed with access to helpful contents which may guide their purchases appropriately. Consumer-to-Consumer (C2C) This business model is leveraged by a consumer for selling used goods and/or services to other consumers through the digital medium, The transactions here are pursued through a 's of which include OLX, Quickr, etc platform provided by a third party, the lilConsumer-to-Business (C2B) A C2B model is the exact reversal of a B2C model. While the latter is serviced to the consumer by a business, the C2B model provides the end consumers with an opportunity to sell their products/services to companies. The method is popular in crowdsourcing based projects, the nature of which typically includes logo designing, sale of royalty-free photographs/media/design elements, and so on and so forth. g apple C28 CONTENT MARKETING see) Nae Business-to-Administration (B2A) This model enables online dealings between companies and public administration, i.e, the Government by enabling the exchange of information through central websites. It provides businesses with a platform to bid on government opportunities such as auctions, tenders, application submission, etc. The scope of this model is now enhanced, thanks to the investments made towards e-government.aie Bits A ~ fy” Bove Business B Consumer-to-Administration (C2A) ‘The C2A platform is meant for consumers, who may use it for requesting information or posting feedbacks concerning public sectors. directly tothe government authorities/administration. Its areas of applicability include: ‘+ The dissemination of information, © Distance leaning. © Remittance of statutory payments. © Filing of tax return © Secking appointments, information about illnesses, payment of health services, etc.2.3 NATIONAL SCENARIO OF E-COMMERCE Growth of E-Commerce in India India first came into interaction with the online E-Commerce via the IRCTC (Indian Railway Catering & Tourism Corporation Limited). The government of India experimented this online strategy to make it convenient for its public to book the train tickets. Hence, the government came forward with the IRCTC Online Passenger Reservation System, which for the first time time. This was a boon to the encountered the online ticket booking from anywhere at any ‘common man as now they don’t have to wait for long in line, no issues for wastage of time during unavailability of the trains, no burden on the ticket bookers and many more. The advancements in the technology as the years passed on have been also seen in the IRCTC Online system as now one can book tickets (tatkal, normal, ete.) on one go, easy payments, can check the status of the ticket and availability of the train as well. This is 2 big achievement in the history of India in the field of online E-Commerce. After the unpredicted success of the IRCTC, the online ticket booking system was followed by the airlines (like AirDeccan, Indian Airlines, Spicejet, etc.). Airline agency encouraged, web booking to save the commission given to agents and thus in a way made a major population of the country to try E-Commerce for the first time, Today, the booking system is not just limited to the transportation rather hotel bookings, bus booking ete. are being done using the websites like Makemytrip and Yatra, The acceptance of the ecommerce on a large scale by the Indian people influenced other business players also to try this technique for their E-businesses and gain high profits. Though online shopping has been present since the 2000 but it gainedpopularity only with deep discount model of Flipkart in 2007. Soon other portals ike Amazon, Flipkart, Jabong, ete. started hunting India for their businesses. For India’s E-Commerce industry, new times are approaching, The E-Commerce penetration in India may be comparatively lower than the US and other European markets, but it continues to grow at a rapid rate with many new entrants Currently, E-Commerce is heavily dependent on the web and Smartphone revolution that has essentially altered the way businesses interact with customers. E-commerce in India is still in {growing stage but it offers considerable opportunity. Over the past few years the sector in India has grown by 34% (CAGR i.e. Compounded Annual Growth Rate) since 2009 to touch 16.4 billion USD in 2014 (Internet and Mobile Association of India research report). The sector is expected to be in the range of 22 billion USD in 2015.Factor behind Growth The growing population and demographics of India will probably be the major driving force behind the explosion of E-Commerce in the near future. According to the IAMA\, India had 213 million internet users in 2013 - which was projected to reach the 300 million mark by end of 2014, With this, projection, India will attain the position of the second-largest internet base in the world after China (600 millon) and ahead of the United States’ internet users (207 million). India has an internet user base of about 354 million as of Q2 of 2015 (The Economic Times 2015). Some factors are: * With 870 million mobile phone subscribers in India, mobile commerce will grow and become one (of the main ways consumers shop. + The young generation on the internet has emerged as the driving force behind the growth of the E-Commerce industry in India, with nearly 90% of online shoppers aged between 18-35 years. » With more families joining the workforce, consumers are more likely to engage digitally and make fewer trips to stores for their shopping. * Over the next two decades, India’s rising middle class is expected to grow to over 40% of the population, creating the world's fifth largest consumer market. + The brick and mortar stores will continue to face an uphill battle competing with online retailers on product range and variety. * Unlike retail stores, €-Commerce websites can base their premises anywhere they like-drastically reducing the cost of rent on a property. + Another factor that favours E-retailers to high street stores includes holding more stock. As online stores can be based anywhere, they can be located in a large warehouse, or even a home garage ‘which means that much more stock can be ordered in * The brick and mortar retail models for music, books, electronics, footwear and cosmetics are looking extremely vulnerable at the moment, and could lead to store closure.DESC unt | DOC Us a (In Billion $)24 INTERNATIONAL SC! RIO OF E-COMMERCE Intemational e-commerce is an undeniable growth opportunity. According to a recent studyconducted by Flow Commerce, 67% of online apparel shoppers across 11 top global markets have made a cross-border purchase in the prior six months. Statistic estimates the global ecommerce market will pass $2 trillion in 2020, with revenues in China expected to have the largest growth rate at a CAGR of 11.6% up to 2024. Similarly, Statistic expects that US. market revenues will exceed $490.9 billion by 2024, while revenues in Europe will reach $516.2 billion in the same time frame. ‘The highest incidence of cross-border shoppers according to our research report was in Brazil, Australia, and Canada, however most of the other countries surveyed, including the U.S. and China, were well over 50%. This trend is further validated by a separatereport revealing that high cross-border online shopper penetration in those countries as well as in China and Mexico. The cross-border shopping trend is certainly not slowing down and continues to gain traction and grow. Ina Global Market Outlook report, projections estimate that global e-commerce will grow at a CAGR of almost 20% to reach $18.89 trillion by 2027. There are a number of factors impacting this growth. The global nature of search and increasing use of search engines facilitates the discovery of new brands and online retailers. Mobile penetration has also had an impact helping to drive cross-border purchases. Mobile commerce sales are projected to show a 25% growth in 2020 over 2019, with additional growth in 2021. With over 3 billionsmartphone users worldwide, more and more global consumers are also shopping via mobile phones and the opportunity in m-commerce is showing impressive growth. Through mobile, more consumers have access to social media platforms. With the recent global pandemic and quarantine rules, social shopping has become even more widespread amongconsumers, which is why it represents a popular channel for many retailers to reach their global customer base.Global Statistics - Growth figuresCHAPTER-3 PRESENTATION, ANALYSIS AND FINDINGS 3.1 AMAZO) Amazon.com, Ine, (/zemo7pn/AM-a-zon) is an American multinational technologycompany which focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence, It is one of the Big Five companies in the U.S. information technology industry, along with "one of the Google, Apple, Microsoft, and Facebook The company has been referred to ‘most influential economic and cultural forces in the world”, as well as the world's most valuable brand,Jeff Bezos founded Amazon from his garage in Bellevue Washington, on July 5, 1994, It started as an online marketplace for books but expanded to sell electronics, software, video games, apparel, furniture, food, toys, and jewelry. In 2015, Amazon surpassed Walmart as the most valuable retailer in the United States by market capitalization, In 2017, Amazon acquired Whole Foods Market for US$13.4 billion, which substantially increased its footprint as a physical retailer. In 2018, its two-day delivery service, Amazon Prime, surpassed 100 million subscribers worldwide. Amazon is known for its disruption of well-established industries through technological innovation and mass scale. It is the world's largest online marketplace, Al assistant provider, live-streaming platform and cloud computing platform as measured by revenue and market capitalization. Amazon is the largest Internet company by revenue in the world. It is the second largest private employer in the United States and one of the world's ‘most valuable companies. As of 2020, Amazon has the highest global brand valuation. Amazon distributes downloads and streaming of video, music, and audiobooks through its Amazon Prime Video, Amazon Music, Twitch, and Audible subsidiaries. Amazon also has a publishing arm, Amazon Publishing, film and television studio Amazon Studios, and a cloud computing subsidiary, Amazon Web Services.3.2 HISTORY Jeff Bezos founded Amazon in July 1994. He chose Seattle because of technical talent as Microsoft is located there. In May 1997, Amazon went public. It began selling music and videos in 1998, at which time it began operations intemationally by acquiring online sellers of books in United Kingdom and Germany. The following year, Amazon began selling items including video games, consumer electronics, home improvement items, software, games, and toys. In 2002, Amazon launched Amazon Web Services (AWS), which provided data on website popularity, Internet traffic patterns and other statistics for marketers and developers. In 2006, Amazon grew its AWS portfolio when Elastic Compute Cloud (EC2), which rents computer processing power as well as Simple Storage Service (S3), that rents data storage via the Internet, were made available, That same year, Amazon started Fulfilment by Amazon which ‘managed the inventory of individuals and small companies selling their belongings through the company intemet site. In 2012, Amazon bought Kiva Systems to automate its inventory- ‘management business, purchasing Whole Foods Market supermarket chain five years later in 2017. In January 2021, Amazon invested with over $278 million by opening two new centers in Italy (Novara and Modena) and creating over 1100 jobs. On February 2, 2021, Amazon announced that Jeff Bezos would be stepping down as CEO and transition to Executive Chair of Amazon's board in Q3 of 2021. Andy Jassy, who is currently CEO of AWS, will sue Bezos as CEO of the company.3.3 DATA ANALYSIS Known best as the largest retailer in the world, Amazon is not simple to understand in one go in terms of business model analysis. Even if we begin by looking at i's consumer retail business, it quickly becomes clear that the company is anything but a traditional retailer. While Amazon does sell products ata standard mark-up, it has also pioneered alternate retail strategies by acting as the gateway for other retailers and a very robust marketplace for used goods. But retail is only part of the picture when it comes to Amazon, 3.4 LINES OF BUSINESS ‘The company itself defines its lines of business in terms of products sales, servicesales, AWS, fulfilment, publishing, digital consent subscriptions,advertising and co-branded credit cards. I'll define Amazon's lines of businesses as: = Online Retail: The online retail line of business includes those products sold by Amazon as a traditional retailer, most commonly asa low-cost retailer. Amazon claims to have "Earth's BiggestSclection of products available through its family of websites, sold at t small profit. The company started as an online book seller, rapidly expanding into music and movies, and ultimately into electronics and household goods. But Amazon doesnt stock everything that is sold through its website, Another part of its retail strategy is to serve as the channel for other retailers to sell their products and taking a cut of every purchase. Amazon ‘maintains its status as a destination website, but does not have to maintain inventory on ¢ lowest cost ataslower-selling products. This strategy has made Amazon introduced the sale of used products through it seller marketplace. Originally developed to compete with eBay, the seller ‘marketplace provides another retail revenue stream for the company without the need to stock products in its warehouses. Advertising and shipping are handled exclusively by sellers, with Amazon taking a cut of every sale simply for providing the channel + Internet Services: Amazon's Internet services cannot easily be discussed as a standaloneline of business because it is deeply intertwined with both its retail business and the Kindle ecosystem. From the consumer's perspective, Amazon has begun to provide services like Amazon Prime, which provides free two-day shipping on retail purchases, on demand video streaming and free access to kindle library, all of an amnual fee. Amazon Prime overlays the subscription and all you can eat business models with the retail model to provide additional customer value. Unknown to most Amazon customers, however, are the other Internet services provided by Amazon, referred to as AWS (Amazon Web Services). Originally developed as a side business, Amazon decided to lease out its own server space to other companies and individuals. While not a core part of the company's strategy, Amazon found itself managing a large number of servers and intemet services, and it was a fairly small effort to manage those services for others. Kindle Ecosystem:Amazon has expanded its business into manufacturing and distributingthe family of kindle tablets. Originally designed as an electronic book reader (supplementing its online book seller business), the kindle has become a fully functional tablet and media device. With the kindle, amazon serves as both manufacturer and traditional retailer (and also wholesaler by selling the device through other retailer). While the company does not admit as much, it assumed that the kindle devices are sold at a loss, which would correctly put this line of business into the razor3.5 BUSINESS MODELS Amazon has three distinct businesses, plus a slew of nascent enterprises and developing opportunities. a) Amazon Retai Starting in books and then expanding into electrical and other goods,Amazon built an online retail business around three aims: 1. Best Prices: Amazon products are generally offered at discount, a steep discount in the case of books. 2. Unrivalled particular ection: Amazon often has the largest selection of goods in a stegory, especially books. 3, Convenience: Amazon focus on the consumer and try purchasing an enjoyable experience, offering:An attractive, easy-to-use customer interface. + Fast and reliable delivery from vast, fully automated warehouses, first located in strategie spots in the US but increasingly worldwide. A no-nonsense returns policy. + Reviews by customers of the product, + Purchase suggestions based on previous purchases and web page viewing. b) Amazon Marketplace ‘Amazon also offers a third-party selling platform, Amazon marketplace, that allows merchants to offer goods and services through an online shopping mall, Amazoncharges a commission based on a formula involving the sale price of the item, a shipping credit, a referral fee of 6-25% of the sale price, a variable closing feeand a Rs.70 fixed closing fee. This has now been augmented or replaced by four comparable services: * Sell on Amazon: Merchants pay Rs 2810 per month, plus a commission varying above and generally between 15% and Rs. 93 per item Amazon Webstore: More complete service. Merchants pay Rs. 1685 per month plus 2% of sales Fulfilment by Amazon: Allows merchants to use Amazon's advanced fulfilment technology. The services are being expanded from USA, Canada, UK and Germany to other countries. Amazon does not release information on these businesses, either revenues or usage levels ¢) Amazon Web Services ‘Amazon leveraged the technology it developed in retails to offer an icreasing number of web services. 1. Computer Related + Amazon Elastic Compute Cloud + Amazon Elastic Map Reduce + Auto Scaling 2.Contemt Delivery ‘Amazon Cloud Front4. Deployment 2 Management 5. ECommert ‘Amazon Fulfilment Web Services 6. Messaging + Amazon Simple Notification Services Amazon Simple Email Service 7. Monitoring Amazon Cloud Watch 8. Networking ‘Amazon Route 53 + Amazon Critical Cloud Hastic Load Balancing ‘9. Payment Billing+ Amazon Flexible Payment Services + Amazon Dev Pay 10. Storage + Amazon Simple Storage Services + Amazon Elastic Block ‘Storage AWS Import/Export ‘11 Support ‘AWS Premium Support Web + Traffic Alexa Web Information Services. ‘Alexa Top Sites 12. Workforce Amazon Mechanical TURK3.6 Amazon's E-Commerce Strategies 1. Intensive Growth Strategies A. market development ‘Amazon uses market development as its current primary intensive growth strategy. entry and growth in new markets is the main objective in this intensive strategy. amazon ine. adds new. countries where it offers its services, for example, the company initially provided its online retail services to ‘consumers in the united states. amazon now operates ecommerce websites in more than 10 countries, including canada, the united kingdom, china and india each new country is considered a new market that ereates growth opportunities for the fitm, amazon's generiestrategy builds competitive advantage that allows the company to implement this intensive strategy of market development. A strategic “objective related to this intensive growth strategy is for amazon.com to establish new online retail websites that correspond to new countries added to the company's global market reach, B. Market penetration Market penetration is a secondary intensive growth strategy in amazon's online retail business. The objective of this intensive strategy is to generate more revenue from the grows with increasing consumerism. For example, as consumers develop increasing interest in online retail, the company benefits from higher sales revenue especially when considering the popularity of the amazon brand. Market penetration is responsible for the initial rapid growth of amazon.com Inc.in the united states, the company's generic strategy creates the competitive advantage necessary to aggressive marketing campaign to attract more consumers to amazon's e-commerce website. C. Product Development Amazon applies product development as a supporting intensive strategy for business growth, Developing and offering new products to gain higher revenues is the goal of this intensive growth strategy. Amazon grows partly by developing new products over time. The company's cost leadership generic strategy supports this intensive strategy by providing the company with low- cost business processes to introduce research and development investment for rapid product development and release to the online retail market.Diversification is the least significant among Amazon's intensive growth strategies. Growth based on new business is the objective in applying this intensive strategy .For example Amazon grew through its acquisition of audible, which is a producer of audio books and related products. In this regard, the company partly uses acquisition to implement this intensive growth strategy. Amazon Inc.'s cost leadership diversification by applying the same approaches to minimize operating costs and selling prices. A strategic objective associated with this intensive strategy is to grow the e commerce business through an aggressive acquisition strategy. E. Customer Relation Management Strategy When a customer first enters into Amazon.com he or she is provided "featured product” recommender system automatically provides produets by studying customer's interest and personality, Customer acquisition and retention has been the most priority to Amazon's strategy. Through web site Amazon maintain sophisticated yy the website, but when the customer visit for the second time the communication that automates the process of creating value for the customer, F. Associate Program To boost the customer traffic and rate of sale Amazon started an associate program with ‘customersand small business man.Approximately, 200000 websites have enrolled in the program. 2. User Reference StrategiesA. Personalise the Shopping Experience One thing that Amazon does very well is personalizing the shopping experience to each user. Going to Amazon's home pagepage you'll see different sections such as "Related to iitems you've viewed", "Inspired by your browsing history", "Recommendations for you" ete. Amazon knows that the more relevant the product is to the user the more likely users will purchase B. Make Searching a Breeze The search bar can have a significant impact on the user experience, especially for larger online retailers with many products. The faster a user can, find their desired product the momore likely it is that the user will purchase. Amazon makes searching a breeze by automatically suggesting popular products and categories. C. Onsite Product Reviews Extensive online product research has become a crucial part of the buying process purchasing... The online shopper's attention span is short, and if they g0 off-site to search for product review there's a good chance they won't return.Clearly displaying product reviews can significantly improve the conversation rate of a product page.D. Free or Minimum shipping charge Reducing the cost of shipping can boost up the customer but ultimately it can be a financially effective decision. E. One Click Purchase Customer with previously activated functionality can orders item by clicking only one button without fulfilling the order form, Amazon's secured server automatically provide the information required for the registered customer. F. Secure Credit/Debit card payments For secure transaction Amazon use secured server software.Customer’s personal information, credit/debit card numbers anand everything are encrypted in order to secure information over internet. G. Customer Care If you do build a great experience, customer tells each other ababout that "Wordto mouth is very powerful"-Jeffty P. Bezos, One of the success factors ofAmazon is word of mouth.Because of excellent trusted Amazon. They talked about it to each other, thus creating huge traffic on the website tomer service customers3.7 Why Amazon is so successful ? Amazon launched Amazon Prime in 2005 and positioned it as a membership service that offered two-day free shipping and other benefits, Prime has evolved since then to also include exclusive offers at Whole Foods grocery stores, access to award-winning TV shows, access to their music streaming service called Amazon Music, and much more, Then in 2015, the service gained even more attention when Amazon Prime Day was launched. For one day only, Amazon Prime members have access to deepdiscounts and exclusive offers. This annual event, available globally, is a highlight for Prime members. In fact, there were over 100 billion products sold globally during the most recent Prime Day. This beat out sales from Cyber Monday, Black Friday, and the last Prime Day. While Amazon Prime isn't like most loyalty programs that customers automatically qualify for-you have to pay to join Amazon Prime-it does a good job of driving traffic to the store and ‘encouraging shoppers to buy something Customers want loyalty programs. In fact, 71% of customers choose to join loyalty programs because of the promise to save money on their purchases 63% join because of the potential to receive products for free Amazon has been able to tap into this need customers have to save money instantly when they shop.Byoffering special discounts and reduced or free shipping rates, shoppers are naturally drawn to Amazon to meet their purchase needs.For any business customers satisfaction and gaining customer is very important and necessary. By giving many discount.offers amazon gained lots of loyal customer.So this is one of the biggest reason why Amazon is so successful.3.8 BOARD OF DIRECTORS As of September 2020, the board of directors is: 3.8.1 Jeff’ Bezos, President, CEO, and Chairman 3.82 Keith B. Alexander, CEO, lronNet Cybersecurity, former NSA Director 3.83 Rosalind Brewer, Group President, and COO, Starbucks 3.84 Jamie Gorelick, partner, Wilmer Cutler Pickering Hale, and Dorr 3.85 Daniel P. Huttenlocher, Dean of the Schwarzman College of Computing at the Massachusetts Institute of Technology 3.86 Judy McGrath, former CEO, MTV Networks 387 Indra Nooyi, former CFO, PepsiCo 388 Jon Rubinstein, former chairman, and former CEO, Palm, Inc. 3.88 Thomas O, Ryder, former chairman, and former CEO, Reader's Digest Association 3.8.10 Patty Stonesifer, President, and CEO, Martha's Table 3.8.11 Wendell P. Weeks, chairman, President, and CEO, Coming Inc. 3.9 MERCHANT PARTNERSHIP In 2000, U.S. toy retailer Toys "R" Us entered into a 10-year agreement with Amazon, valued at $50 million per year plus a cut of sales, under which Toys "R" Us would be the exclusive supplier of toys and baby products on the service, and the chain's website would redirect to Amazon's Toys & Games category. In 2004, Toys "R" Us sued Amazon, claiming that because of a perceived lack of variety in Toys " Us stock, Amazon had knowingly allowed third-party sellers to offer items on the service in categories that Toys "R" Us had been granted exclusivity. In 2006, a court ruled in favor of Toys "R" Us, giving it the right to unwind its agreement with Amazon and establish its own independent e-commerce website ‘The company was later awarded $51 million in damages.In 2001, Amazon entered into a similar agreement with Borders Group, under which Amazon. ‘would comanage Borders.com as a co-branded service. Borders pulled out of the arrangement in 2007, with plans to also launch its own online store. 3.10 LOGISTICS Amazon uses many different transportation services to deliver packages. Amazon-branded services include: 3.10.1 Amazon Air, a cargo airline for bulk transport, with last mile delivery handled either by Amazon Flex, Amazon Logistics, or the United States Postal Service. 3.102 Amazon Flex, a smartphone app that enables individuals to act as_ independent contractors, delivering packages to customers from personal vehicles without uniforms Deliveries include one or two hour Prime Now, same or next day Amazo Fresh groceries, and standard Amazon.com orders, in addition to orders from local stores that contract with Amazon, 3.193 Amazon Logisties, in which Amazon contracts with small businesses (which it calls"Delivery Service Partners") to perform deliveries to customers. Each business has a fleet of approximately 20-40 Amazon-branded vans, and employees of the contractors ‘wear Amazon uniforms. As of December 2020, it operates in the United States, Canada, Italy, Germany, Spain, and the United Kingdom. 3.10.4 Amazon Prime Air is an experimental drone delivery service. Amazon directly employs people to work at its warehouses, bulk distribution centers, staffed "Amazon Hub Locker locations, and delivery stations where drivers pick up packages. As of December 2020, it is not hiring delivery dr ers as employees Rakuten Intelligence estimated that in 2020 in the United States, the proportion of last-mile delive s Was 56% by Amazon's directly contracted services (mostly in urban areas), 30% by the United States Postal Service (mostly in rural areas), and 14% by UPS.Ue ae NN amazon.com 3.11 PRODUCT AND SERVICES Amazon.com's product lines available at its website include several media (books, DVDs, music CDs, videotapes and software), apparel, baby products, consumer electronics, beauty products, gourmet food, groceries, health and personal-care items, industrial & scientific supplies, kitchen items, jewellery, watches, Jawn and garden items, musical instruments, sporting goods, tools, automotive items and toys & games. In August 2019, Amazon applied to have a liquor store in San Francisco, CA as @ means to ship beer and alcohol within the city. Amazon has separate retail websites for some countries and also offers intemational shipping of some of its products to certain other countries. In November 2020, the company started an online delivery service dedicated to prescription drugs. The service provides discounts up to 80% for generic drugs and up to 40% for branded drugs for Prime subscribe users. The products can be purchased on the company's website or at over 50,000 bricks-and-mortar pharmacies in the United States, Amazon.com has a number of products and services available, including: 3.11.1, Amazon Fresh 3.11.2. Amazon Prime 3.11.3 Amazon Web Services 3114 Alexa 3.11.5 Appstore 3.11.6 Amazon Drive 3.11.7 Echo 3.118 Kindle3.119 Fire tablets 3.11.10 Fire TV 3.11.11 Video 3.11.12 Kindle Store 3.11.13 Music 3.11.14 Music Unlimited 3.11.15 Amazon Digital Game Store 3.11.16 Amazon Studios 3.11.17 AmazonWireless 3.12 SUPPLY CHAIN: Amazon first launched its distribution network in 1997 with two fulfilment centres in Seattle and New Castle, Delaware. Amazon has several types of distribution facilities consisting of crossdock centres, fulfilment centres, sortation centres, delivery stations, Prime now hubs, and Prime air hubs. There are 75 fulfilment centres and 25 sortation centres with over 125,000 employees. Employees are responsible for five basic tasks: unpacking and inspecting i coming goods; placing goods in storage and recording their location; picking goods from their computer recorded locations to make up an individual shipment; sorting and packing orders; and shipping, A computer that records the location of goods and maps out routes for pickers plays a key role: employees carry hand-held computers which communicate with the central computer and monitor their rate of progress. Some warehouses are partially automated with systems built by Amazon Robotics. Amazon's Supply Chain Simplified &--koe WEP) =| ~ i amazon Coe) amazondrive amazon FRET an 8 kindle fire | *e"Prime thd 3.13 WEBSITES ‘The domain amazon.com attracted at least 615 million visitors annually by 2008; by the beginning of 2016, over 130 million customers were visiting the U.S. website each month. ‘The company has invested heavily in a massive amount of server capacity for its website, especially to handle the excessive traffic during the Christmas holiday season, According to Alexa Intemet rankings, amazon.com is the third most popular website in the United States and the 14th most popular website worldwide. Results generated by Amazon's search engine are partly determined by promotional fees. The company's localized storefronts, which differ in selection and prices, are differentiated by top-level domain and country code: Region Country Domain name Since Brazil amazon.com,br| December 201: ‘Americas Canada amazon.ca | June 2002) Mexico amazon.com.mx August 2013United Stat amazon.com | July 1998 China amazon.cn | September 2004 India amazon in | June 201 Japan amazon.cojp | November 200 Asia Singapore ‘amazon.s9 | July 2017) Turkey lamazon.com.tr| September 201 United Arab Emirates amazon.ae_ May 2019 Saudi Arabia ‘amazon.sa | June 202¢ France amazon fr, August 2004 Germany amazonde| October 1995 Italy amazon.it| November 2011 Netheriands amazon.nl | November 2014 Europe Poland amazonpl| March 2021 Spain September 2011 Sweden amazon.se| October 202 United kingdom amazon.co.uk) October 1998Oceania Australia amazon.com.au | November 2017 3.14 SALES RANK ‘The Amazon sales rank (ASR) provides an indication of the popularity of a product sold on any Amazon locale, It is a relative indicator of popularity that is updated hourly. Effectively, it is a "best sellers list" for the millions of products stocked by Amazon. While the ASR has no direct effect on the sales of a product, it is used by Amazon to determine which products to include in its bestsellers lists. Products that appear in these lists enjoy additional exposure on the Amazon website and this may lead to an increase in sales. In particular, products that experience large jumps (up or down) in their sales ranks may be included within Amazon's lists of "movers and shakers"; such a listing provides additional exposure that might lead to an increase in sales. For competitive reasons, Amazon does not release actual sales figures to the public. However, Amazon has now begun to release point of sale data via the Nielsen Book Scan service to verified author. While the ASR has been the source of much speculation by publishers, manufacturers, and marketers, Amazon itself does not release the details of its sales rank calculation algorithm. Some companies have analyzed Amazon sales data to generate sales estimates based on the ASR, though Amazon states: Please keep in mind that our sales rank figures are simply meant to be a guide of general interest for the customer and not definitive sales information for publishers—we assume you have this information regularly from your distribution sourcesAmazon Net Sales Worldwide 2017-2020 SPL AEPLLII OLA soece ancin Sucre fering go ‘© repricerexpress 3.15 MULTI-LEVEL SALES STRATEGY: Amazon employs a multi-level e-commerce strategy. Amazon started by focusing on busine: and business-to-business to-consumer relationships between itself and its custome relationships between itself and its suppliers and then moved to facilitate customer-to- customer with the Amazon marketplace which acts as an intermediary to facilitate transactions. The company lets anyone sell nearly anything using its platform. In addition to an affiliate program that lets anyone post Amazon links and carn a commission on cli through sales, ther e is now a program which lets those affiliates build entire websites based ‘on Amazon's platform, Some other large e-commerce sellers use Amazon to sell their products in addition to selling them through their own websites. The sales are processed through Amazon.com and end up at individual sellers for processing and order fulfilment and Amazon leases space for these retailers. Small sellers of used and new goods go to Amazon Marketplace to offer goods at a fixed price. In November 2015, Amazon opened a physical Amazon Books store in University Village in Seattle. The store is 5,500 square feet and prices for all products match those on its website Amazon will open its tenth physical book store in 2017; media speculation suggests Amazon plans to eventually roll out 300 to 400 bookstores around the country.In June 2018, it was reported that Amazon planned to open brick and mortar bookstores in Germany. In September 2020, Amazon launched Luxury Stores on its mobile app, where Oscar de la Renta become the first and only label to partner with the firm. 3.16 FINANCES Amazon.com is primarily a retail site with a sales revenue model; Amazon takes a small percentage of the sale price of each item that is sold through its website while also allowing companies to advertise their products by paying to be listed as featured products 34lAs of 2018, Amazon.com is ranked 8th on the Fortune SO0rankings of the largest United States corporations by total revenue 271 134 eee st dt BPE see eHAmazon's market capitalization went over USS1 trillion again in early February 2020 after the announcement of the fourth quarter 2019 results.12914mazon's total employees now number 798,000") Year | nim USD$, nmi USDS, Inmi Usps, EMPIPYSS 20070 14,83: 476 6485 17,00 2008). 19,166, 645, 8314 20,70 2008 24,509, 902 13,813, 24,304 2010». 34,204, 1,182] 18,797, 33,704 201 ya 48,077 631 25,278 56,204 2012. 61,09: -39 32,555, 88,404 2013». 74,452, 274 40,159, 117,300 2014 28,98 244 54,505, 154,100, 2016. 107,01 596 64,747, 230,804 2016». 135,987 2371 83,402, 341,404 2017 m| 17,866, 3,033, 131,310, 566,000, 2018, 232,887 10,073, 162,648 647,500,20199 280,522, 11,588) 225,248, 798,000 2020 386,064 21,331 321,195, 1,298,000) amazon » . amazon — ase eG Ey eel 3.17 ENVIRONMENTAL IMPACT In September 2019, Amazon workers organized a walk-out as part of the Global Climate Strike. An internal group called Amazon Employees for Climate Justice said over 1,800 employees in 25 cities and 14 countries committed to participating in the action to protest Amazon's environmental impact and inaction to climate change. This group of workers petitioned Jeff Bezos and Amazon with three specific demands: to stop donating to politicians and lobbyists that deny climate change, to stop working with fossil fuel companies to accelerate oil and gas extraction, and to achieve zero carbon emissions by 2030, Amazon has introduced the Shipment Zero program, however Shipment Zero has only committed to reducing 50% of its shipments to net zero by 2030, Also, even that 50% does not nec ily mean a decrease in emissions compared to current levels given Amazon's rate of growth in orders.That said, Amazon's CEO has also signed the Climate Pledge, in which Amazon would meet the Paris climate agreement goals 10 years ahead of schedule, and would be carbon-neutral by 2040. Besides this pledge, it also ordered 100 000 electric delivery trucks from Rivian Amazon funds both climate denial groups including the Competitive Enterprise Institute and politicians denying climate change including Jim Inhofe. In November 2018, a community action group opposed the construction permit delivered to Goodman Group for the construction of a 160,000 square metres (1,700,000 sq ft) logisities jenne platform Amazon will operate at Lyon-Saint-Exupéry Airport. In February 2019, Téte filed a request on behalf of a second regional community action group asking the administrative court to decide whether the platform served a sufficiently important public interest to justify its environmental impact. Construction has been suspended while these matters are decided, ‘Amazon considered making an option for Prime customers to have packages delivered at the most efficient and environmentally-friendly time (allowing the company to combine shipments with the same destination) but decided against it out of fear customers might Sin reduce purchas e 2019, the company has ins cad offered customers an "Amazon Day" option, where all orders are delivered on the same day, emphasizing customer convenience, and it occasionally offers Prime customers credits in return for selecting slower and less expensive shipping options. 3.18 ANNUAL SALES AND REVENUE Amazon’s net income more than tripled to $8.1 billion in the first three months of 2021, exceeding the record set in the fourth quarter of 2020.Sales in North America increased by 39,5% while international sales shot up by 60.4%.Amazon.com Inc. reported record quarterly profits today, as the leading online retailer attracted shoppers around the world amid the pandemic-driven shift to online purchasing, Amazon’s total revenue increased 43.8% to $108.518 billion—the second consecutive quarter it has exceeded the $100 billion mark in a three-month period, a figure it had never reachedbefore the fourth quarter of 2020. North American sales went up 39.5% to $64,366 billion while international sales increased 60.4% to $30.649 billion, The online retailer's net income shot up 219.8% to $8.107 billion, exceeding the company’s previous record of $7.222 billion set in the fourth quarter of 2020, Amazon exceeded Q4 profits in the current quarter, even though its revenue was 13.6% higher during the fourth. quarter, which included both the holiday season and a rescheduled Prime Day sale that ocourred in October 2020, Amazon’s growing advertising revenue boosts profits A big contributor to Amazon's increased profits came from its advertising business, which makes up the bulk of the revenue in a category Amazon calls “Other.” Revenue in that category rocketed up 76.8% to $6,905 billion as competing retailers and brands advertised on Amazon’s site to its huge user base, which includes more than 200 million Amazon Prime members worldwide . Advertising revenue is highly profitable, and the $3 billion inerease in this category helped propel Amazon to record profits. Amazon Web Services, the company’s market-leading cloud computing service, increased its revenue by 32.1% to $13.503 billion. The highly profitable business unit accounted for 47.0% of Amazon’s operating income, but that was down from 77.1% in Q1 2020 as Amazon, ‘made more money from retailing and advertising than it did a year ago. ‘The company’s international segment, which has frequently lost money, tuned in operating income of $1.25? billion. Amazon launched a new ecommerce site in Poland in March, its 16" full-fledged shopping site around the world. Amazon’s performance in the first quarter, ending March 31, 2021 Net sales of $108.518 billion, a 43.8% increase from $75.452 billion in the same quarter in 2020. Net product sales accounted for $57.491 billion, up 37.4% year over year from $41.841 billion. Net service sales, which include Amazon’sfulfilment services for sellers on its marketplaces, hit $51.027 billion, up 51.8% from the prior year’s $33.611 billion. North American net sales of $64.36 billion, up 39.5% from $46.127 billion in the first quarter of 2020. North America accounted for 59.3% of total net sales in the first quarter of 2020, or 67.7% of sales excluding Amazon Web Services. International net sales totalling $30.649 billion, up 60.4% from $19.106 billion in the first quarter of 2020. International accounted for 28.2% of total net sales in the fourth quarter, or 32.3% of sales, excluding AWS. Amazon Web Services revenue hit $13.503 billion during the quarter, up 32.1% from $10.219 billion a year earlier. AWS sales accounted for 12.4% of consolidated revenue in the first quarter of 2020. Other revenue, including Amazon’s rapidly growing advertising business, totalled $6,905 billion, up 76.8% from $3.906 billion in the same period in 2020. Revenue from subscriptions, including Prime member fees, was $7.580 billion, up 36.4% from $5.556 billion in the same period in 2020. Amazon’s operating income rose 103.2% to $8.865 billion from $3.989 billion, AWS eamed $4,163 billion in operating income, an increase of 35.4% from $3.075 billion a year ago. That profit represented 47.0% of Amazon's QI operating income, down from 77.1% in the same quarter last year.= Net income of $8.107 billion, up 219.8% from $2.535 billion in the same period in 2020. = Spending on fulfilment increased 43.4% to $16.530 billion, up from $11.531 billion in the same period in 2020 ‘amazon Global Reta! Revenue amazon acall anil 3.19 COMPETITIONS Who is Amazon competing with? We might be surprised. From small niche websites to other retail business giants, Amazon has its hands full with online competitors. WALMART Walmart is another global giant. This big-box department store generates $514.41 billion in net sales per year. That's more than double Amazon, although a large percentage of Walmart’s sales, obviously come from brick-and-mortar purchases There are more than 11,000 Walmart physical store locations across 27 countries.While Walmart is best-known for its physical department stores, this retail giant also has a significant presence online, Behind Amazon, Walmart is the second most popular online store inthe United Statesin terms of ecommerce revenue. ALIBABA/ALIEXPRES Ss Alibaba is a China-based online retailer. This international giant specializes in wholesale selling online, which is a differentiation factor compared to Amazon.Another unique difference between Alibaba and Amazon is its overall business model. While Amazon is run entirely under one roof, Alibaba is split into separate businesses: © Alibaba, © Taobao, * Tall Alibaba is the B2B focus of the company, while the other branches focus on B2C and multinational brands, respectively.As of June 2019, there are 755 million Alibabausersworldwide. The company is responsible for $8% of all online retail sal in China.Alibaba sold $30.8 billion of products on November 13, 2018, the Chinese version of Black Friday known as “Singles Day.” With an international presence, a dominant market share in China, and B2B sales in addition to B2C focus, Alibaba is a force to be reckoned with. Plus, any website that can do '$30 billion in one day can definitely win against Amazon. OTTO Otto is a European online retailer. The company is best known for innovation throughout the years to keep pace with the times. At its core, Otto is a trading company, meaning that it sells products from other brands on its ecommerce platform. It’s essentially a one-stop-shop for buying online in Europe. Some of Otto’s top categories include fashion, electronics (like Apple and Microsoft products), home goods, and sports.One of the reasons why Otto is so popular is due to its user-friendly interface. The platform makes it easy for consumers to shop online.In 2019, Otto generated roughly $3.8 billion in revenue from online sales. While this may seem marginal compared to Amazon, it's still extremely impressive, Otto has a 13.7% annual growth rate. 72% of their sales come from furniture, appliances, and, fashion purchases. This makes them unique compared to Amazon. EBAY Everyone is familiar with eBay. This er in consumer-to-c site was a pione mnsumer selling through an online marketplace. Over time, eBay has evolved and become more than just a way for consumers to buy and sell their own new or used merchandise. ‘Today, eBay is used for B2C sales in addition to its traditional C2C model. In terms of marketplace website visits, eBay is second to Amazon, with just under 20% of the market share.The site traffic to eBay is impressive, It's nearly double Walmart, and we've already established how successful Walmart is in the online space. With the ability to bid on products and the unique way for buyers and sellers to connect online, eBay is a top competitor to Amazon. FLIPKART Flipkart is a newer ecommerce company compared to some of the other competitors on our list. Thi Indian-based ecommerce platform was founded in 2007 and quickly became the largest online retailer in India, In 2018, Walmart acquired 77% of Flipkart’s shares, valuing the company at $22 billionWith Walmart controlling the majority stake of Flipkart, there’s no telling where the company can go from here, More than 100 million users are registered on Flipkart. The platform’s user-friendly design, mobile app, and customer service make it one of the up-and-coming Amazon competitors, With such a wide range of products offered through Flipkart, the company is poised for continued success in the coming years. RETAIL MARKET SHARE The Big Fight ae3.20 Comparison study between Amazon and e bay - Company profile AMAZON Amazon.com, INC. is an American electronic commerce and cloud computing company with headquarters in Seattle, Washington. It is the largest Internet- based retailer in the United States Amazon.com started as an online bookstore, diversified selling DVDs, Blurays, CDs, video downloads/streaming, MP3 downloads streaming. software, video games, electronics, apparel, fumiture, food, toys and jewelry. The company also produces consumer electronics notably, Amazon Kindle e-book readers, Fire tablets, Fire TV and Fire Phone and is the world’s largest provider of cloud computing services. Amazon also sells certain low-end products like USB cables under its in-house brand ‘Amazon Basics Amazon has separate retail websites for United States, United kingdom & Ireland, France, Canada, Germany, Italy, Spain,the Netherlands, Australia, Brazil, Jap an, China, India and Mexico. Amazon also offers international shipping to certain other countries for some of its products. In 2011, it professed an intention to launch its websites in Polandand Sweden. Amazon is founded by jeffbazos in 1994 Address:410 terry ave.north Seattle WA Type of company: E-commerceEBAY eBay Inc. is an American multinational corporation and e commerce company, providing consumer to consumer &business to consumer sales services via Internet. It is headquartered in San Jose, Califomia eBay was founded by Pierre Omidyar in 1995, and became a notable success story of the dot-com bubble. Today, it is a multi-billion dollar business with operations localized in over thirty countries The company manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. In addition to its auction-style sales, the website has since expanded to include "Buy It Now" shopping shopping by UPC, ISBN, or other kind of SKU (via Half.com); online classified advertisements (via Kijiji or eBay Classifieds), online event ticket trading (via StubHub); online money transfers (via PayPal) other services Itis a free website, but charges users an invoice fee when sellers have sold or listed any items. Address: Bay Headquarters 2065 Hamilton Avenue San Jose, California 95125 USA Phone no. :(800) 322-9266, (448) 376-7400 Type of company:E-commerce 2 Size of organisation AMAZONEmployees = 1,83 Employees = 34000 3. Which Has More Customers: eBay or Amazon? us dollar Operating income- 178 million US dollar loss Total Asset- 54 billion US dollar Revenue- 17.9 billion us dollar Operating income- 3.51 b Total asset= 45 billion US dollar n_us dollar The size of eBay's marketplaces is a small fraction of what Amazon’s is.Amazon’s revenue was $282 billion in 2018 compared to eBay’s meager $10.75 billion. eBay's North America revenues are even smaller relative to Amazon's. eBay’s total revenue per year has been essentially flat for nearly five years while Amazon’s has nearly tripled in this time. Marketplace Sales (In Billions) 2014 2015 2016 2017 2018 ebay $8.79, $8.59] $8.98] $9.96) $10.75 amazon.com $88.99] $107.01] $135.99) $177.87, $232.89 eBay % of Amazon 9.9% 8.0% 6.6% 5.6% 4.6%!Overall though, all things equal, you should expect Amazon to bring in 10x more sales than eBay. Share of Ecommerce Sales (U.S) 2017 2018 2019 Amazon 42.0% 448% 47.0% eBay 7.6% 6.8% 6.1% Walmart 3.3% 4.0% 4.6% Apple 3.8% 3.8% 3.8% The Home Depot 1.4% 1.6% 1.7% 4 Which Has Less Seller Competition: eBay or Amazon? Both eBay and Amazon are selective with what data they reveal about their sellers. Amazon in 2019 revealed they had 200,000 sellers with revenue over $50,000 and 50,000 sellers with revenue over $500,000.Number of Amazon Sellers by Revenue 250,000 200,000 200,000 150,000 50,000 eBay says there were 6.7 million sellers in 2017 but the VAST majority of these are very low-volume sellers, eBay almost certainly has far fewer sellers than Amazon. More importantly, as we'll get to shortly, competition for advertising is also significantly less on eBay so it’s cheaper. 5. Which Has Lower Selling Fees: eBay or Amazon? eBay charges a flat 10% in commissions but does not include payment processing fees in that calculation, Payment processing fees are typically an additional 2.9% from PayPal.Amazon typically charges a 15% commission which includes payment processing fees. However, Amazon will charge you inbound shipping fees if you use their FBA program and outbound shipping fees as well. We used an example of a package selling for $49.99 and measuring 15"x12"x4". The cost on eBay was $15.96 compared to $13.25 on Amazon. ‘Amazon fees were 20% cheaper than eBay. cone cow ney Selling Price $49.99 $49.99 Selling Fees $4.99 $7.50 Payment aes 7 Processing Shipping Fees from Amazon FBA $9.52 $5.85 (2-Day) Total Fees $15.96 $13.35 Approximately 0- Advertising Fees - pr y 25%+ of Sales $0/$24.95 Basic = Monthly Fees (Professional eBay Store Selling Plan) 6. Which Has Lower Advertising Fees: eBay or Amazon? Both Amazon and eBay are increasingly becoming pay-to-play marketplaces. This means that often you need to pay to have your listingsappear at the top of search results. However, Amazon sellers rely on advertising far more than eBay sellers. We surveyed five high-volume sellers and found that these sellers had advertising account for 26.7%-60.6% of their sales. Cost of Advertising on Amazon fn rn oa [Sales $29,103.00] $51,000.00 $53,486.00] Advertsing Spend eBay has recently expanded what it calls promoted listings but most sellers use no advertising at all.[f you're a typical seller on Amazon, with 25% of sales coming from advertising and pay approximately 30% for your Average Cost of Sale (ACoS), then this adds an extra 7.5% to your selling fees 7. Which Is Better for Branding: eBay or Amazon? The biggest disadvantage of Amazon though is the fact that Amazon owns the customer in every regard. Amazon hides everything about the customer in great detail, most importantly their email address. They also severely limit how much branding of your products you can use by severely limiting HTML/CSS use, While eBay does not want you directing customers off of eBay, you do have a lot more flexibility, including getting access to their email address and being able to somewhat brand your store and listings. Previously, we used Mailchimp’s eBay integration to email customers after purchase if they'd like to signup for an extremely relevant ebook. Each month we would generate 100+ emails from this strategy. Our email list for this segment converted at around 1% with an average transaction value of $200. It was very valuable.