An E-Business

In: Business and Management

Submitted By HoosierVol3815
Words 3124
Pages 13
An e-Business Analysis of Amazon
Timothy Harpe
BUS 352
Ins. Victor Olufeso
December 15, 2013

Becoming one of the most powerful E-tailers on the planet is Amazon.com; in a matter of 18 years becoming one of the most powerful E-tailers in the world, while not producing a product. Amazon.com is an American e-commerce company based in Seattle, Washington. Founded in 1994, by Jeff Bezos started a business out of his garage in Bellevue, Washington, which he incorporated under the name Cadabra.com. Then in 1995, Cadabra became Amazon.com, continuing as an online bookstore before diversifying its product lines by adding VHSs, DVDs, music CDs, MP3s, computer software, video games, electronics, apparel, furniture, food, toys, and more to his portfolio of items to sell. “Amazon also issued guidance for the fourth quarter of 2013, saying that net sales are expected to be between $23.5 billion and $26.5 billion, representing growth of 10% to 25% over the fourth quarter of 2012,” (McGrath, 2013) with no end in sight. Amazon has a business model that is based on the buy, sale and transfer or shipment of goods to anywhere in the world, as of 2013 it is working well. With the explosion of the World Wide Web, or internet, Jeff Bezos capitalized on the book buying and reading industry, with aggressive ideas of improving the way to deliver this product. Although Amazon does not buy a lot of products, rather they allow the seller store their product in the Amazon warehouse hubs. When the product is purchased, “Amazon deducts as a referral fee a percentage of the item price, and any gift wrap charges, in each case excluding any taxes collected through Amazon tax collection services, plus a variable closing fee,” (Amazon.com, 2013). Another feature is the multi-leveled Ecommerce strategy Amazon employ’s, selling almost anything using its platform allowing the buyer…...

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