topic description of the amazon com business model

After a period of existence and development, Amazon hasexpanded its business to other items such as electronics, household appliances, toys, fashion...Therefore, Amazon''''s scale is increa

THUY LOI UNIVERSITY

-

-TOPIC: DESCRIPTION OF THE AMAZON.COM BUSINESS

MODEL

E- LECTURERS : NGUYEN PHUONG LINH

CLASS : 63TMDT1

Team: Golden Goat - COMMERCE ENGLISH

Members:

1 NGUYEN THI ANH

2 NGUYEN THI NGOC BICH

3 LE HAI NAM

4 BUI TUNG LAM

Table of Content:

I HISTORY OF AMAZON: 2

II INTRODUCTION TO AMAZON E-COMMERCE FLOOR: 2

2.1 Amazon market place: 3

2.2 Amazon prime: 4

2.3 Amazon Kindle: 5

2.4 Amazon Logistic: 7

2.5 Amazon technology: 9

III CONCLUSION : 10

I HISTORY OF AMAZON:

Amazon was founded in 1995 by Jeffrey P Bezos because at that time the internet was booming and users had increased shopping needs At that time, Bezos founded Amazon with the purpose

of using the Internet to trade and exchange books Operating for a while, Amazon has made buying books faster, easier and more beneficial than buying books directly

The origin of the name Amazon is inspired by one of the longest rivers in the world, Amazon Initially, Amazon was called Cadabra After a period of existence and development, Amazon has expanded its business to other items such as electronics, household appliances, toys, fashion Therefore, Amazon's scale is increasingly large, dominating the market in many countries around the world

Today, anywhere with the Internet can choose Amazon as a place to buy products because this is

a multinational e-commerce site When customers choose Amazon to shop, they also get lower costs than traditional methods In addition, customers can also choose, compare, and evaluate products before purchasing to have a better experience the best

Amazon is built on the foundation of a combination of brands, customers, technology, professional distribution capabilities in e-commerce, and a strong team with strong knowledge, experience, and enthusiasm for change new and serve customers wholeheartedly In addition to its headquarters in the founding country of the United States and an online sales site for the United States, Amazon also established many separate websites for different countries in many other continents such as Canada, England, Germany, France, China and Japan

II INTRODUCTION TO AMAZON E-COMMERCE FLOOR:

Diversified business model: Amazon has expanded the e-commerce concept from the original online book selling to a diversified sales platform They sell not only electronic products, but also a variety of different categories such as food, household appliances, clothing, toys, jewelry, and more This has created a great convenience for consumers, allowing them to shop for different items from a single source

Online shopping experience: Amazon has created a convenient and easy online shopping experience Their user interface is user-friendly and easy to use, allowing users to search, compare and purchase easily in just a few clicks They provide detailed product information, customer reviews and similar product suggestions, helping users make smart purchasing decisions

Delivery and return service: Amazon has built an efficient and reliable delivery system With Amazon Prime service, users can enjoy free and fast delivery for thousands of products They also offer a flexible return policy, helping users feel secure when purchasing online

which users can share reviews, comments and experiences about products This helps users have detailed and reliable information to make purchasing decisions

Pricing and promotion strategy: Amazon has used pricing and promotion strategy to attract customers They often offer competitive prices and special offers, and hold major shopping events like "Prime Day" to encourage users to make purchases Thanks to its position and large purchasing capacity, Amazon can negotiate and get good prices from suppliers, thereby passing

on benefits to customers through attractive prices

2.1 Amazon market place:

Amazon Marketplace is an e-commerce platform that allows third-party sellers (independent sellers) to sell their products on Amazon's website This is an important part and plays an important role in Amazon's success Here is the analysis of Amazon Marketplace

Diverse and vast: Amazon Marketplace connects millions of independent sellers and sellers globally This creates a huge variety of products and options for shoppers Sellers can sell a variety of products from electronics, food, clothing, home appliances, to toys and more This helps Amazon create a high level of competition and attract shoppers to their platform

system to manage their online business They can create and manage their own product pages, process orders, manage inventory, and interact with customers through Amazon's sales management tools Furthermore, Amazon ensures transactions are made securely and reliably through its payment system and buyer and seller protection policies

International stature: Amazon Marketplace has international stature and expands to many countries around the world This creates a huge opportunity for businesses and sellers to reach global customers and expand their sales Amazon offers multilingual support and offers international shipping, making it convenient for sellers to reach international markets

Access to available customers: Amazon Marketplace has a great advantage in reaching customers With millions of shoppers visiting the Amazon website every day, sellers can reach a huge number of potential customers

Reviews and trustworthiness: Amazon Marketplace provides a customer rating and review system for sellers This helps build trust and reliability in purchasing from independent sellers on the platform Customers can read reviews, comments, and ratings of sellers' products and services before deciding to make a purchase This helps create a trustworthy buying environment and keeps sellers motivated to deliver high quality

to advertise and promote their products Merchants can use paid advertising tools, such as search and display advertising, to increase the visibility and reach of their products Furthermore, Amazon also offers other marketing services such as the Amazon Affiliate Program, which allows sellers to cooperate with other marketing partners to increase sales

service Sellers can use Amazon tools and resources to support customers, resolve issues, and respond to customer requests quickly and professionally This ensures that customers are well served and have a good buying experience on the Amazon Marketplace platform

2.2 Amazon prime

Amazon Prime is an Amazon membership service, for which customers pay monthly or annually to receive many incentives and utilities when shopping on the Amazon platform Here is an analysis of Amazon Prime:

millions of products on Amazon Prime members can enjoy free shipping with expedited delivery times, typically 1-2 days This is very useful for consumers who want to save time and shipping costs

Access to online content: Amazon Prime provides access to Amazon's streaming platform, including Prime Video, where members can watch movies, TV shows, and original content from Amazon Studios Additionally, Prime also offers access to Prime Music, a streaming music service with millions of songs, and Prime Reading, which allows you to read books, magazines, and comics for free

Special offers: Amazon Prime members also have access to many special offers For example, they can participate in promotions like "Amazon Prime Day," a huge annual discount shopping event exclusively for Prime members Additionally, Prime also offers special deals on products and services like Kindle, Fire TV, and other tech products from Amazon

Unlimited photo storage: Prime members are also provided with unlimited storage space for photos on Amazon Photos This allows users to store and share large quantities of photos without worrying about disk space

Amazon Prime has become one of the most popular and widely used membership services in the world Amazon Prime's strength lies in the fact that it offers a diverse basket of member amenities and benefits, from free shipping and access to entertainment content to special deals and unlimited photo storage term

Amazon Prime's business model has attracted millions of users, helping Amazon build a strong e-commerce ecosystem and expand its global presence This service has also contributed to increasing customer loyalty to Amazon and motivating them to continue shopping on the platform

2.3 Amazon Kindle

Amazon Kindle is a brand of e-book readers designed and marketed by Amazon.com Amazon Kindle devices enable users to browse, purchase, download, and read books, newspapers, electronic magazines, and other digital media wirelessly connected to the Kindle Store The purpose of Amazon Kindle is not only to help users optimize the reading experience, but also support other advanced features such as listening to music, surfing the web, playing games, watching movies, etc With a low price, good design Compact, users can take Amazon Kindle anywhere, anytime

Some advantages of Amazon Kindle

images are extremely sharp In addition, even if you use the device in the sun, there will be no glare or eye strain

Dictionary and highlight while reading: Amazon Kindle is equipped with a full dictionary

look-up feature, including the Oxford dictionary Owning this device will help enrich vocabulary and improve vocabulary understanding

Compact: Compact design helps users take it anywhere Just put it in your backpack, bag, pocket, etc

Personalize interface design: With just a few basic steps, users can design the reading interface

to their liking by customizing text size, font, and margin alignment Furthermore, the background color and brightness can be changed to protect the user's eyes whether day or night

Basic book reader: This is an early product, the only feature is reading books The basic e-reader

is considered the cheapest Kindle with only 1 feature The device is equipped with a 5-way control button located right at the bottom of the machine, making the product extremely easy to use In addition, the device also possesses the ability to provide extremely accurate reading light for users

used to search for information about historical figures, famous figures by keywords or access Wikipedia, Shelfari, and Amazon's encyclopedia system A special function of the device is to provide an audio version of the document, reading the document content aloud without additional costs

DX: The device has a large screen and extremely sensitive keyboard to help users perform text operations and notes extremely easily and quickly

provides The device uses Amazon's exclusive network browser, so you can experience many of the conveniences that the device brings Fire HD is equipped with a 7 Inches screen, this model also has an upgraded version of itself, X7'' with up to 64Gb storage and 4G connection

addition, Fire HDX 8.9 is also equipped with front and rear cameras capable of taking extremely sharp images

2.4 Amazon Logistic

Logistics services are commercial activities, whereby traders organize the implementation of one or more tasks including receiving goods, transporting, warehousing, warehousing, customs clearance, other paperwork, Customer consulting, packaging, marking, delivery or other services, etc

- Starting with a garage sale of books, Amazon has now become one of the global retail giants and has contributed to redefining the rules of the supply chain With more than 130 million units of inventory to manage and millions of transactions to control Amazon has smart and careful strategies in the following:

All of the company's warehouses are strategically located Located near populated centers and major supermarkets In addition, the company also equips small warehouses

in less populated areas to ensure orders can be delivered quickly

The warehouse is also optimized internally A special feature of Amazon's warehouses is that the goods are arranged in no order; toy dolls can be placed in the same compartment

as toothbrushes and novels This can help picking staff save time picking up goods (because they don't have to arrange goods in the right location) and can quickly complete multiple orders at the same time by Use the management system to optimize pick-up routes

One of the biggest differences between Amazon's supply chain strategy and other online retailers is that the company offers a variety of delivery options, including: free shipping, Prime delivery in 2 days and even a Prime Now option, which will get products from point A to point B two hours later

To achieve this, Amazon uses a range of different strategies – from using traditional approaches to applying super high technology Additionally, the retailer also takes advantage of existing delivery routes through Fedex and UPS

These different strategies allow the company to get orders faster, easier and more efficient essentially anywhere in the world – even remote and rural areas not served by Traditional choice

Amazon's approach to supply chain management is technology-based The company uses

a multitude of automation and robotics solutions to pick and pack orders and manage inventory

Amazon still allows sellers to operate on its platforms, but at the same time, the company also recognizes the potential that products can bring, when Amazon can completely create similar products at a much cheaper price Amazon offers a wide range of brands from household products to pets and baby products, and the list is still expanding This allows Amazon to control the entire lifecycle of its products – from creation to marketing

to storage to shipment

First, and considered the 'guideline' for activities at Amazon, is customer-centric In many internal meetings, Bezos often sets up an empty chair and tells everyone: The company should think from the perspective of an important customer who cannot be present to participate in the meeting Since then, the “empty chair” has become a symbol of customer-focused business practices within Amazon's supply chain

Bezos always emphasizes continuous improvement to improve service quality He was the one who pushed executives at Distribution Centers to extend order pickup hours to 6

or 7 p.m., even though this would likely increase other costs (including labor costs, operating costs ) for Amazon's supply chain

Amazon's business philosophy is to focus on customers Therefore, achieving customer requirements is one of the company's top efforts That is also the reason why the company has invested in technology products that do not really bring short-term business results (For example, Kindle book readers) But these products are the ones that receive a lot of love from customers because of their convenience

2.5 Amazon technology:

At Amazon, there is a very special thing that thousands of employees will work together However, it is not that they participate in the production line, pack goods, or label products What they do is develop together and find ways to apply applications of AI and IoT

Ø The Internet of Things IoT is a large interconnected network of physical devices, such

as electronic devices, sensors, actuators and many other devices

Ø Artificial intelligence (AI) is a system equipped with the ability to simulate human perception and thinking processes This means that AI will not only respond mechanically according to what has been programmed, but can also think and make decisions beyond the scope of its original programming These two technology applications are being applied flexibly at Amazon to create the most accurate, smooth and flexible series of automated processes

recognition technology help customers shop easily

Amazon Website Services (AWS - cloud service) is the technology that has helped Amazon grow strongly in the economic market To date, AWS has expanded its market reach by strongly leveraging its unique scale to provide low-cost services to customers In the second quarter of 2020, AWS generated nearly $11 billion in revenue in the quarter,

growing 29% year-over-year even though the unit has reduced costs for customers due to the Covid - 19 pandemic And now, AWS is changing according to the new development direction of the business

Much of AWS's innovation around IoT focuses on connectivity and developer tools AWS IoT Core allows users to connect devices to cloud applications, monitor messages while processing, and route data to appropriate endpoints Greengrass is an innovative platform that enables local data processing using edge devices Other offerings include Amazon AI services, such as FreeRTOS, SiteWise, Device Management, and Things Graph that provide a powerful set of capabilities for developers to create industrial data monitoring applications from advanced devices, sensors and other sources, using advanced analytics and services

3 CONCLUSION

With the growing digital economy and new e-commerce platforms developing and expanding, Amazon still has a solid foothold in the digital economy market Amazon is still growing and expanding its market to countries around the world At the same time, we also develop and apply more modern technology to the service activities of the floor Amazon is still the largest and most widely used e-commerce platform in the world