Amazon does a significant amount of business in books, both online and print, but differs from other book retailers in that it is a selling platform for seemingly anything you could think to purchase on the Internet. While online shopping is a significant competitive force, it is very difficult to beat a physical store. The goal is to keep customers in store as long as possible, even if they spend most of the day reading a magazine or a book, to ensure that they are making some kind of purchase.
The store locations serve a two-fold purpose; they act as a physical showcase for books that can be purchased online and have environment that fosters community. There is a great degree of markup on college textbooks that is deflected to students, and when students sell books back to colleges, it is at a greatly reduced price.
The simple model that Amazon operates under is its key to success. Amazon uses little more than a bare bones online platform to sell its products meaning a minimal cost structure. At the same time, this business model requires no asset investment in physical store locations. Through an online platform, Amazon can offer products from a variety of sellers on a global scale, allowing them to mitigate expensive shipping costs. This online platform also means increased transferability to mobile devices, meaning they can offer the same services through application stores and exchanges.
The robot packages the product and returns it to the front of the warehouse, while dozens of other machines are operating simultaneously. Amazon is doing everything in their power to create a shopping experience similar to going to an actual store; including the instant gratification of receiving your purchased goods right as your purchase them. Amazon is moving towards an incredibly automated distribution channel that will reduce time to consumer through revolutionary technology.
Both companies understand the profit potential of the industry and are taking steps to capitalize on profit opportunities. Although only in business 17 years, Amazon. Amazon has separate retail websites for the following countries: Amazon Prime membership is very popular and for an annual fee, a user can join, which entitles them to free two-day shipping on eligible purchases.
Since , Amazon has released multiple versions of the Kindle e-reader and two versions of the Kindle Fire. Past Challenges The challenges that these two companies have faced, and continue to face, are the digital landscape and competition. The company is in constant competition with e-commerce sites, e-readers and tablets. Now it has become a tablet with color, a built in light, Internet searching and application capabilities. Its newest tablet comes in high definition. While the NOOK looks more appealing than it did in previous years, one thing stands in its way of success, which is price.
Amazon has made a name for itself globally, however it still has competition with other e-commerce sites like e-Bay.
EBay allows individual sellers to auction essentially anything they want for a fee. Amazon has limitations on what individual sellers can sell due to competition with other retailer partnerships with Amazon. However, according to a recent Forrester report, 30 percent of all online shoppers start at Amazon to research products as opposed to Google or eBay Savitz, Another competitor Amazon faces is Apple. While the iPad is more expensive than the Kindle, Apple fans might point out that the iPad has far more tablet-optimized apps, options for 4GLTE connectivity, and is the thinner and lighter device of the two.
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