Wednesday, June 17, 2009

An example of an E-Commerce success and its causes



There are several websites operating e-commerce business in the world. Among them are eBay, Amazon.com and others. Basically, these websites provides a space for buying and selling products through internet. However, not all website commencing online trading business is successful. Being ranked the top e-commerce website in the world, Amazon.com has several key strategies that lead to their achievement since the beginning of this website.

Amazon.com was started by selling only books through online. However, in 1995, they started to change the variety of their goods from books to other types of goods such as DVDs and electronics as required by customers. Since then, they started to sell various categories of products through online which include books, electronic products, home products, grocery, and others. Until today, they have 31 products categories which fulfill 49 million active customer’s needs.

Besides the variety of goods available in Amazon.com, they also provide clear and user-friendly features for sellers and buyers. Amazon requires sellers to post high-quality images of their products to attract buyers from viewing, and selection of product can be done by choosing from the catalog provided in the website. A 12-Digit Universal Product Code (UPC) helps their customers to accurate allocate the products of their favorite.

To provide convenience to their customers, Amazon requires the sellers to submit keywords and a title for their products before the items are posted on the website. Keywords can help buyers to search for the products they desired. After the selection process, buyers can add the items to a “Buy Box” and the total price of the items will be computed by the website.

Reliability is one of the main factors of success in business. Therefore, Amazon provides order and shipping confirmation to ensure the orders are shipped on time. Moreover, this can help to improve their reputation and reliability of sales. Buyers can also rate their experience in the feedback system in the website. This system ensures Amazon improves their services at all time and makes correction whenever there is a complaint from buyers. In addition, Amazon requires all sellers must accept returns from their customers if there are material differences between the items and the descriptions provided in the website. Sellers are also required to respond as soon as possible to claims and a refund is issued if necessary.

By having all the mentioned features, Amazon ranked the top of Internet Retailer’s annual top 400 lists, ahead of their competitors which includes Dell Inc, eBay, and Office Depot Inc.

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