Share
Explore BrainMass

Amazon.com's E-Business Model

Discuss the pros and cons of Amazon's growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently.

Determine the impact if Amazon.com had split up and become a family of brands (for example, â??Amazonâ? for books, â??Supertoysâ? for toys, etc.), each with a different public face but all run by the same parent company.

Determine if it would be possible for Barnes and Noble or Borders to extend their markets in the same way that Amazon.com has. Explain your rationale.

Determine what Amazon.com would need to do to expand their distribution chain to include some brick and mortar outlets, and whether or not this would be a good idea

Create a table to compare and contrast the Web sites: www.Amazon.com, www.BarnesAndNoble.com, and www.Borders.com, using the following criteria: functionality, design, content, originality, professionalism, and effectiveness. Include the table as an appendix to the required paper

Solution Preview

Amazon.com's E-Business Model

Discuss the pros and cons of Amazonâ??s growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently.

Pros
Easy to Get Started. Amazon has made it super easy for anyone to get started with making money online. The products are easy to find, and the ads are easy to incorporate into any blog or website. And the best part is that they even provide you with step-by-step instructions on how to do it.
Amazon Stores. Amazon allows you to open up to 100 amazon stores which you can link to from your blog, or you can incorporate the store onto your own website so that it blends in with the rest of your website. This basically helps your visitors to shop at ease, as they already trust your site.
Huge Selection of Products. This is mentioned belo, but this is what makes Amazon so great. This basically means that no matter what market or niche you are in, Amazon will have products that you can promote either through banner ads or product links.

Cons
Low Referral Fees. Amazon has a low referral fee which starts at only 4%. This does not leave you with much revenue when you make a sale. However, this amount goes up to as much as 10% for certain products, and up to 15% when you sell Endless products. Therefore the more products you sell, the higher your referral fees will be.
One-Day-Cookie. Amazon has been bashed for the fact that they only have a one day cookie. This basically means that when someone clicks on your link today, but waits more than 24 hours to make the purchase, then you will not be paid for making the referral. This ...

Solution Summary

This solution is a critical analysis of Amazon's online operation. It discusses why Amazon has the edge over other close competitor like Border, and Barnes and Noble. A five-page file discussing the issue is also attached.

$2.19