Thursday, October 9, 2008


The following blog will be dedicated to discussing an e-commerce website of my choice which is Amazon.com. Amazon.com Inc. was the poster child for the new Internet economy with its dynamic, young chief executive and highly valued stock. But when the technology bubble burst, the company quickly morphed from poster child into punching bag. However, unlike many of its e-commerce counterparts, Amazon survived. Now the company is more than just surviving, it's made itself the undisputed leader of Internet commerce.

History
When Jeff Bezos founded Amazon in 1994, he launched the Web site with the idea of selling books to a mass audience through the Internet. The web site however was text heavy and simply wasn't pretty. However, Bezos did not just create a bookstore; he created an online community. The site was revolutionary for allowing average consumers to create online product reviews. It not only drew people who wanted to buy books, but also those who wanted to research them before buying.

A year after going public in 1997, Amazon added music CDs and movie videos to the web site, what many considered to be a wise move designed to complement the company's expansive book collection. Then the company, which touted itself as "Earth's biggest bookstore," demonstrated it had much bigger plans. Amazon added five more product categories -- toys, electronics, software, video games and home improvement. It was an era of hyper growth -- one later ridiculed by onlookers who believed Amazon's "Get Big Fast" strategy was doomed. But early investors and executives point to the rapid growth as a key to its success. Today, Amazon has established itself as a website which offers quality products at great prices and convenience.


Web Design and Layout

For any website selling products, there will be a lot of information shown on the homepage and Amazon is no exception. There are pictures of products but the numbers shown are acceptable. Clear category links are located on the top left hand side of the website which allows users to navigate easily. Through the different categories such as toys, books and electronics, the user shortens his/her search and will be able to locate their desired product in the shortest period of time.

Should users find difficulty in their search or have already decided what items they are looking for, they will be able to use the comprehensive search engine located prominently on the top of the webpage. The search engine was easy to use and the list of results gave me results which was more than what I had expected. The background of the webpage was white, thus the fonts and pictures are look great in sharp contrast. Other than the pictures of the product, Amazon also provides the prices of the items, a short description and how the product was rated out of 5 stars.


Forums

Forums are active in cyberspace now as it allows people to discuss about issues which they are concerned with. There is no identifiable forum available in the website but a section named customer discussions. This is found at the end of every product and it acts like a forum in that other users will post their feedback on this product. This is made only possible by the technology the website has and the concept of the website. Amazon encourages its users to give ratings and feedbacks and this gives potential users an estimate of the product they might buy.

Amazon further provides more features such as editorial reviews, detailed product description and useful sections such as “What do customers Ultimately Buy After Viewing This Item” and “ Customer who bought this item also bought” and even sections such as “Top movie rentals”. All these features allow the users to have an opportunity to make a rationale decision before making purchases. There is absolutely no pressure but instead ample avenues for users to think and seek advice before they commit to a purchase.

Secure transaction

Amazon was one of the first few website to take credit card purchases over the internet. There is a section in the web page that specifically talks about security to dispel any fears users might have. Further explanations are also provided on how user’s credit card number is encrypted and how other personal information is stored securely. Modes of payment include American Express, Diners Club, Discover, JCB, MasterCard, Eurocard, Visa, Visa Check Cards, Amazon.com gift cards, Amazon Store Card, and Webcertificates

Member’s Corner

The website encourages visitors to become members of the website. Being a member is easy and it only requires users to provide their email account and their password. By being members of the website, Amazon will provide a list of useful links. This would include your recent view history, your wish list, your recent purchased items and your online community. By being personalized, the website has succeeded in allowing the users to feel that this is their own personal website. Amazon will even be able to monitor your shopping habits and make appropriate recommendations.

Once an order has been entered, Amazon will confirm the order through email and provide the buyer with a string of numbers, which will allow the buyer locate the current location of their product and when their product can be expected to reach them. Just like DHL, impressive.

For Businesses

Amazon not only sells to the mass public but also caters to other businesses as well. There is a section for businesses as well. In this section, businesses are able to purchase items through Amazon as well. From range of stationeries, computer softwares to potential gifts, Amazon is trying to market itself as a one stop location for businesses to make purchases as well.


For advertisers

Amazon not only earns profits through the core business of selling, but also allows potential advertisers to take advantage of their website and introduce online product ads, online display advertising, and offline package inserts. Furthermore Amazon does not charge monthly fees but only when charges when an Amazon shopper clicks on the ad and is taken to the advertiser’s web site. The advertiser’s can control not only the maximum price you are willing to pay for that click, but also their daily budget. This allows them to measure the return on their advertising investment and optimizes their budget accordingly, thus creating a win-win situation for all,

Strengths
The website is well-organized with links such as site map and search functions to assist users to find information efficiently. Furthermore, Amazon is a recognized website that is trusted internationally. With such reputations, the website will be able to make rectifications in a short time should there be any errors with the deliveries and such assurance is of paramount importance to consumers. Another of their strength is the recommendation they provide to their members, with I personally feel useful. They are also able to give an estimate on the delivery date of the item, should the order be placed by certain timing. Such assurance allows the user to feel confident when their products will reach, especially if the products are to be meant as gifts. Amazon also has promotions such as the pooling of products. For example I did a search on the popular game monopoly and it was stated that scrabble was also frequently bought today. Should I make a purchase for both, it would offer me potential savings. All the above strengths shows how Amazon is not purely concerned with just selling, but an experience which they hope will make the customer satisfied.

Weakness
One key weakness of Amazon is that for users to make purchases, they will have to hold a credit card. Other forms of payments include international wire transfers, PayPal, or Smart Cards. This would pose a problem for students and even some adults who do not posses a credit card. They might have to borrow credit cards from others in order to make purchases. Another minor weakness is that potential users who would like to make purchases would have to register as members. Thou the process is not taxing, some might question the need as other websites do not require the same procedure.

Conclusion

I am deeply impressed by the website. If not for this assignment, I would not have noticed so many other functions this website can provide. Definitely not established over a short period, it must have took Amazon many feedbacks from customers and a policy to further improve their offerings before we see the final product we see today. I am sure Amazon will continue to strive to improve even further.

1 comment:

JK said...

hi,

pls state your name (in full) on the webpage.

I would like hear the ecommerce business model adopted for this site.
Shd be a B2C virtual storefront... and whether it is 100% virtual or not.

thanks, jackkoh