Part A: 1) List at least five reasons why Amazon and eBay are the leaders of the e-commerce? (20 points 4 -points each)
1.Customers reviews: Customers need to know more about the product and prefer to purchase a product that has been recommended, reviewed and rated by other consumers regardless if it’s a positive or a negative review. This feature increases the sales in both Amazon and eBay.
2.Variety of shipping options: Both Amazon and eBay provide shipping options that let the customer’s orders arrive in a fast and efficient way. Amazon has a membership feature which is called Amazon Prime that provide the customers with free shipping, or in some cases like in the U.S. it can be delivered to them on the same day. eBay has three shipping options for sellers, which is free shipping, flat-free shipping and calculated shipping. These shipping options in Amazon and eBay saves money and time. Not only that, but it attracts more consumers.
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4.Trustworthy and safety: Amazon and eBay has been the best e-commerce, so consumers tend to buy and pay with confidence because they know that it’s trusted. additionally, it’s protected till your order arrives to you.
5.Personalized shopping: Both Amazon eBay have a feature of showing the recommended products based on their previous research and purchase. This boosts up the sales and ease up the customer service.
2) Discuss why amazon is not successful in china? (20 points – 4 points
eBay has a choice preferred standpoint. Regularly contributed similar to the world 's greatest store, and have a bigger number of things available to be purchased than anyplace else. However its maintainability props on patch up unstable ground as omnichannel world envision, for arranging purposes, that everything is available to be purchased in each commercial center, each methods, and each channel. Partaking connected shoppers may never get to that world, yet it 's a helpful arranging presumption.
Ebay is primarily service providers who connect the sellers and buyers by providing platform to sell and buy any goods.
Amazon.com and Overstock.com are the two companies that will be researched in detail. Their financials will be comb through and synopsis of their financial status will be developed. These two companies are within the same industry of selling discounted products online. This is a tough industry to do well in and competition is tough. The e-commerce marketplace is intensely and savagely competitive. Their financials tell the story and show how lean and mean these companies must run. This paper is going to touch on briefly on each company, what they do, where they are financially, ratios between the two and their industry, and look at their cashflow.
Amazon.com operates in the Online Retail Industry. The sector is one of the fastest growing globally and is outperforming the ordinary retail marketplace. It was created after 1995 and it was only the Internet that made it possible for such an industry not only to be established but to become one of the most flourishing sectors in the business environment. What is interesting is that Amazon.com, together with eBay is the pioneer in the field. Both companies were launched in 1995 and are still extremely successful. The creation of e-mail in 1996 had a huge impact on the development of online retail by introducing a fast and easy way to communicate with customers. For this two-year period Internet usage
When we compare with amazon.com we will find same features and can sell our goods at amazon.com
EBay has paved the wave in this industry and being in a billion dollar industry making things happen to benefit consumers in many ways.[5]
Amazon make sure that customer service is the best, Customers experience low prices through Amazon, the fastest delivery, having a form of reliable contact. Amazon customer service problems have allowed retailers to sell itme on the website, to make broaden the worlds selections of products. Amazon has a rival EBAY, which also allows merchant to sell and buy through its site, but with eBay there has been complaints with poor service and fraud (Cohen, 2009).
‘We believe that the principal competitive factors in our retail businesses include selection, price, and convenience, including fast and reliable fulfilment. Additional competitive factors for our seller and enterprise services include the quality, speed, and reliability of our services and tools, as well as customers’ ability and willingness to change business practices’ (Amazon10-K report 2015).
More and more people have experienced shopping online and there are a increasing number of people who prefer E-Purchasing.
Amazon.com has successfully managed to make its customers to feel that anything they could possibly want could be found on their website. Additionally, its products are marketed at a competitive price. Another important factor is their speedy delivery with their usage of UPS and FedEx (United States) and Royal Mail (United Kingdom). The company also caters for people that prefer online shopping with extra services such as Amazon Prime - a service with a yearly payment, customers are eligible for free next day delivery. Even though Amazon.com is known to be an online seller of most things, it still excels in its original market of book selling. Evidence of such is
Providing customers more of what they want - low prices, vast selection, and convenience - Amazon continues to grow and evolve as a world-class e-commerce platform. “When you order products from Amazon, it arrives on your doorstep in two days, but people don’t think about how.” said George Prest, CEO of a logistics trade group.
There are mainly 4 priorities of Amazon when they established their online venture. The four priorities are convenience, selection, price, and customer service. E-business gave the Amazon a major advantage i.e it opens for 24 hrs or anyone can buy anything 24hrs a day. Various functions such as reviews, e-mail notifications , product recommendations, etc are given by Amazon in their website. Wide range of products are also provided by Amazon. They have an inventory of millions of products at a time.
Amazon and eBay are online giant stores. Since they have enormous range of products, affordability and product quality vary so the scores are somewhat in the middle. Some products are very affordable while some products are unreasonably inflated. Ease of shopping with Amazon is ranked higher than eBay, only because the latter has the auction-type of selling which is uncomfortable to some customers. No doubt, though, that both online stores have excellent customer service and have various products to sell. However, most of the products of this online store cannot be found in either of them, making it the strength of this store as compared to them.
Amazon and Ebay are two well-known brands of online shopping sites. They have evolved and grown from small firms to the giants of e-commerce today. In this essay, a comparison would be made between the two firms.
Your product’s listings must be tailored to what Amazon customers want. For example, a sizable percentage of shopping carts are abandoned when customers are surprised by extra shipping costs or additional fees. The solution is being clear on your shipping terms and associated costs up front in the purchasing process. In contrast, Amazon SEO should focus on qualifying for Amazon Prime, Amazon Prime One Day, Amazon Fresh, Amazon Global and other programs that reward customers with low to no shipping costs. Fulfillment by Amazon should be researched if you otherwise may not be able to ship products as quickly as your customers would want them to be. For example, fulfillment by Amazon could lead to much higher sales if you otherwise couldn’t meet the “get it by tomorrow” requirement for people requesting party items, replacement parts for appliances or medical items.