The, Inc., By Jeffrey P. Bezos, And Its Headquarters

1517 Words7 Pages, Inc. was founded in 1995 by Jeffrey P. Bezos, and its Headquarters is in Seattle, Washington. Amazon offers online retail shopping services and is the world’s leading online retailer. Its success has encouraged all sorts of other types of retailers to have an online presence. Amazons increasing size and sales has many referring to it today as the online equivalent of Wal-Mart. The site was generally known for its wide selection of books. The site has expanded and now offers millions of new, refurbished, unique, and used items. Amazon has products in departments such as; books, video games, electronics, movies, music, tools, toys, kid items, baby items, health, beauty, clothing, shoes, jewelry, grocery, sports, outdoor…show more content…
Amazon contracting so many third parties, is a weaknesses for them. Amazon operates at a near-zero profit business model. This has cut potential profits. Although Amazon has high volumes and huge revenues, it has not resulted into significant profits for the company. Roughly 50 percent of Amazons income is made by its’ third parties on the website. Although it looks like Amazon is making a lot of money for the year, half of the money is not theirs. Amazon does receive some money from the transactions made by the third parties, but they could be making a lot more money. Another weakness that Amazon has is that servers crash and it effects the confidence of the customers. Multiple outages of Amazon’s hosting and cloud computing servers are a weakness that needs to be solved immediately. If servers go down, then Amazon loses customers, purchases, and money. This leads to skeptical customers, less purchases, and could start a negative domino effect. Having only the online website, this has become a top priority in keeping the business running. A challenge Amazon has, is that they do not have any retail stores. Consumers like to feel, smell, and try on products when they are buying products. A customer who has the product in front of them, can get an idea of the quality of the product. In some cases, customers can tell if something is sturdy, cheap, or well made. A few
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