Amazon: an Overview

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May 23, 2022

 Amazon is an American multinational technological corporation. It deals in e-

commerce, artificial intelligence, digital streaming, and e-book market. It was founded by

Jeff Bezos in 1994 (“Amazon.com,” 2021).

How Amazon works

Amazon.com sells varieties of products such as food, beverages, electrical appliances,

beauty and cosmetic products, jewelry, cloths, foot wears, technological gadgets, health and

wellness and many others. Over time, Amazon has expanded its business by offering offering

different services such as Amazon Kindle, Amazon Prime Video, Alexa, Amazon academy,

Amazon Studios, Amazon Drive and others. Apart from offering these products, amazon also

makes their customers experience more customized by offering them various offers, and

discounts (Layton, 2021).

Amazon operates on multi-leveled e-commerce strategy which allows third party sellers

to sell their products to its customers. Third party sellers sell their inventory of products to

Amazon at wholesale prices. Seller’s inventory is then provided with Amazon ownership by

Amazon Vendor Central. After that, the products are marketed and sold to customers on

Amazon. Then, an order is placed by a customer and that order is dispatched from Amazon’s

warehouse. A referral fees between 8% to 15% is charged by Amazon from the sellers who

sold their products at Amazon. It provides them with a safe place to carry out trade without

any difficulties. Customers can also find used goods and auctions on Amazon. It controls the

packaging, inspection, shipping and delivery of products to its customers. Amazon has more

than 1137 warehouses globally which are used for packaging, and shipment of orders placed

by customers. It uses its application Amazon which is available on app store and play store to

receive orders from its customers (Layton, 2021).

Amazon’s Customer Relationship

 One of the most important assets of Amazon is its customers relationship. It is a

customer-centric company which focuses on building strong customer relationship by giving

them reasonable prices, convenience, fast delivery, multiple offers and discounts. Key

strategies used by Amazon to build strong customer relation management are listed as

follows (Chhabra, 2021).

 Easy to use interface - The user interface of Amazon is easy to understand and use. It

uses good quality images, description, and details of products on its website. Moreover, it

has also easy checkout process. It helps in developing customer’s interest and

engagement in Amazon (Chhabra, 2021).

 Recommendations - It provides customers with recommended products based on their

past buying behavior. It helps in boosting sales of company as it offers them buying

convenience (Chhabra, 2021).

 Customer Support - Amazon has amazing customer support service. It helps customers in

solving their queries and problems that they face. It is available 24*7 (Chhabra, 2021).

 Review System - The online review system of Amazon gives an opportunity to

customers to share their opinions and experience about the products they get from

Amazon and the service provided by them. It helps Amazon in improving their services

and provide customers with improved and better services (Chhabra, 2021).

Amazon Technology

The technology used by Amazon is Linux-based. The central Amazon data warehouse is

designed of 28 Hewlett Packard servers, with four CPU's per node, and Oracle 9i database

software. It uses Netscape Secure Commerce Server to mitigate security threat. It helps in

storing the credit and debit card details of customers which cut off entry point for hackers

(Layton, 2021).
References

C. (2021, May 21). Amazon.com. CompaniesHistory.Com - The Largest Companies and

Brands in the World. https://www.companieshistory.com/amazon-com/

Chhabra, T. (2021, July 28). Amazon Business Model | How Does Amazon Make Money?

Feedough. https://www.feedough.com/amazon-business-model/

Layton, J. (2021, April 14). How Amazon Works. HowStuffWorks.

https://money.howstuffworks.com/amazon.htm#:%7E:text=Businesses%2C

%20individual%20sellers%20and%20manufacturers,is%20shipped%20from

%20Amazon’s%20warehouse.