Amazon.Com: an E-Commerce Retailer

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Amazon.com: An E-Commerce Retailer

A case report prepared for
MG 495 Business Policy

(Fall I 2012)

Miguel Lopez

26 August 2012

Amazon.com: An E-Commerce Retailer

I. INTRODUCTION
Selling nothing but books is how Amazon.com started its business in 1995, now is acknowledged as the leading online retailer in the world. In addition, its new line of products is the compact disc, digital video disc and movie videos, to include many other products from retail partners from around the world as partnership agreements, which sell their goods through the Amazon.com website. This agreement known as “powered by Amazon,”
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“Because all its products were shipped, Amazon.com offered a number of shipping options, including free shipping on orders over $25. Amazon.com also posted links to shipping companies, so its customers could easily track their orders. Product returns needed to be shipped back to Amazon.com by the customer”. (Collins, Mockler, & Gartenfeld, 2003, p. 5). By charging monthly management fees and commissions on completed purchases, Amazon.com developed a steady revenue stream without incurring much expense. (Collins, Mockler, & Gartenfeld, 2003, p. 6). This type of operations was the cornerstone for Amazon, and can be rated as “stars” for generating the most operating profit.
3. Marketing – “In order to be the most complete retailer possible, Amazon.com realized that it needed to expand beyond offering its own products for sale. The best way to accomplish this was to use the Amazon.com selling platform as a basis to offer additional goods and services for sale”. (Collins, Mockler, & Gartenfeld, 2003, p. 5). Amazon.com partnered with retailers and invested in other online retailers, offered the zShops program to small and medium-sized businesses as an e-commerce platform. In early 1999, Amazon.com decided to invest in other online companies that could profit from selling their products thru the website. “To help pay for these investments, Amazon.com used its high stock prices to purchase ownership stakes in other online retailers. Some of the

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