Discuss about the Amazon E-Business Applications.
E-business is now a trend in the business world today. Among the factors that have made e-business possible is technology. The twenty-first century has been a transformation century where the world has changed in terms of technology. Communication technology has become so common to the extent that the world has now become a global village. People on different sides of the world can communicate easily. The rampancy of communication technology paved the way for the international market (Alaine et al. 2009). People can now buy items beyond their borders at the touch of a button. Thus, the essence of this report is to discover how e-commerce works by studying Amazon, which is an e-business. The report will be instrumental in creating awareness about the existence of this market which will increase the use of this market. Understanding how the e-business system works will increase the appreciation of technology.
Amazon, by reputation, is the world’s largest retailer operating over the internet. It is an online company that retails goods all over the world. Using the Internet, a customer can order anything from anywhere in the world (Swarman et al. 2006). Once the client can identify the items of interest, the client will be asked to pay via credit card. People are always skeptic about inputting their credit card details over the internet because of the high risks involved. The internet is a vast place which means that anyone can tap into the information flowing in it (Foster and Lin 2007). Therefore, availing your credit card details could result in many things such as identity theft which is a common problem today. However, Amazon uses the latest of firewall and antivirus protection software which is updated on a regular basis.
The software comes in handy especially because it encrypts all the information within the network. The advantage of this is that even if the network is tapped into, the hacker will not be able to access this information which leaves the client safe (Hsiu 2008). After the payment information has been inputted, the recipient at Amazon’s offices will take up the order and select the items that the client has ordered. Once that is done, they ship the goods to the country that the client is in. Amazon is an interesting business because it makes it possible for people living in the remotest of areas to get everything that they need even if it is not found in that country. For long distances, the goods are put on a ship which sails for several days depending on the distance.
Amazon’s website, amazon.com, is a site that is very easy to use owing to the fact that every detail is available. For a website to be easy to use, there is a need for a step by step process to enable the clients to use the system faster. Faster services means that the clients will be more appreciative (Jerome and Chih 2010). That will increase the level of customer loyalty which is a highly valued commodity in the market today. The website uses web technology to improve the attractiveness of the site. For example, the website uses actual video advertisements for commodities such as clothes. The video, in this case, showcases models in different dresses. The site being attractive means that the clients will enjoy using the site. By using these visual aids, it is easier for clients to navigate the online system.
Amazon uses an affiliate program which allows for businesses and individual clients to earn by advertising Amazon’s products. That is an advertising tool that Amazon uses to market its services. Amazon also allows for online sales where its retail services permit businesses to sell their products on the same platform. That allow for Amazon to earn from these businesses as they are paid a commission for providing this service. Once the businesses create their accounts, they upload an inventory (Despotovic et al. 2013). After they sale their products, the money these businesses get paid for they pay Amazon for using their services. Amazon released a self-publishing site in 2011 where they allow writers to publish their books, movies without having to use a publishing company as an intermediate. An advantage that this site brings is that it allows the writers to own their copyrights.
Amazon has also invested in a fulfillment program which is an e-business application that allows businesses to store their products and ship them from Amazon’s fulfillment center. When businesses purchase their products, they send them to Amazon’s fulfillment center where these products are cataloged into the system. This program enables businesses to sell their products all over the world (Chen et al. 2016). When a business sells its products on Amazon’s website, Amazon fulfills the orders for the businesses customers and sends them to the clients. That chain allows for e-business to function appropriately. Amazon allows for business to run beyond the national boundaries by ensuring that goods reach the intended persons (Ragothaman et al. 2007). Using its resources, Amazon has a network that ensures that there is ample communication between businesses all over the world. With this increased linkages, e-business is possible.
Marketing strategies for Amazon include the affiliate program which has been mentioned earlier. The affiliate program allows for Amazon’s clientele to earn by referring others to use Amazon’s services. The earning is a motivational factor which encourages these clients to continually refer others to the system. Using this program creates awareness of the online retailer which increases the number of clientele. Amazon also uses B2B and B2C strategies to increase the awareness of people. Under B2B, Amazon invites other businesses to use its services using B2B applications (Lucia et al. 2014). That ensures that Amazon can maintain a good relationship with their clients. It also provides businesses with an easy way to move their money and products. Amazon provides these services at a good price which makes them a convenient service provider. B2C is where Amazon endeavors to create a good relationship with the consumers.
Amazon has multiple distribution points which enable them to make a faster delivery. The company serves the entire world with its product delivery service. Internet consumers want faster delivery of all the products they order over the internet. To earn the loyalty of these customers, Amazon ensures that it provides faster delivery of products by having multiple distribution points all over the world (Bordonaba et al. 2012). Once an order comes through, a distribution point closest to the client’s area is alerted. The products are processed and fulfilled immediately. By having a distribution point close to the customer reduces freight costs which save the company serious finances. Freight costs increase the operation costs of the organization which mean that it reduces the profit margin. By ensuring that the supply chain is short, Amazon can have lower operational costs.
Engaging in e-commerce comes with a lot of risks especially because the business operates over the internet. The risks are there because information transferred over the internet is prone to attack. The internet is an open space where everyone has access to. When Amazon allows individuals to create private accounts, they post private information on the internet. If poached, this information could be worth a lot of money for black marketers. Hackers can reach sensitive information which can be used to black mail people (Bogdanovic et al. 2014). Therefore, to deal with this security issue, Amazon uses sophisticated servers which are kept safe from everyday traffic. The internet is protected by a firewall which filters information sent through the network. Moreover, the information sent through the internet is encrypted to make it harder for hackers to reach the information.
A scalable service can be described as one whose performance increases in a proportional manner to the amount of resources added. Amazon was able to grow from a bookstore to a fully decentralized service providing company. Their first system was written in C++. From then, Amazon shifted its systems into a service-oriented culture which allowed for the building of many software components independently and rapidly. The company’s system was able to grow into hundreds of services where a series of application servers aggregate the information received from the website applications. That allows Amazon to function and provide its uptight delivery services.
Amazon is a company that is using the latest of technology and software in its line of business. However, for this company to retain its market position, there is a need for the company to embrace research and development. Amazon is in a risky business in that the risks involved with dealing with information over the internet is high (Lin 2013). Therefore, without having proper preventive measures to ensure that its networks are kept clear of hackers. By embracing research and development, the company will be able to keep track of the latest technological and software advancements that they can use to secure their servers.
Conclusion
Understanding how e-business functions is a good idea primarily because it can provide insight into how to make it better. Amazon, as a company, has its strategic goals and objectives such as growth, diversity, and expansion. There is a need for people to be aware that this delivery service exists. When people know that they can get anything from anywhere in the world, they will be able to get anything. There are things that someone may want, but he or she may lack it because it does not exist in the country. Through Amazon, it is possible to get anything from anywhere in the world at the touch of a button.
References
Alain Yee-Loong, C, Keng-Boon, O, Binshan, L, & Shu Yi, T 2009, ‘Influence of interorganizational relationships on SMEs’ e-business adoption’, Internet Research, 19, 3, pp. 313-331
Bogdanović, Z, Barać, D, Popović, S, Jovanić, B, & Radenković, B 2014, ‘Evaluation of mobile assessment in a learning management system’, British Journal Of Educational Technology, 45, 2, pp. 231-244
Bordonaba-Juste, V, Lucia-Palacios, L, & Polo-Redondo, Y 2012, ‘Antecedents and consequences of e-business adoption for European retailers’, Internet Research, 22, 5, pp. 532-550
Chen, Y, Jaw, Y, & Wu, B 2016, ‘Effect of digital transformation on organisational performance of SMEs’, Internet Research, 26, 1, pp. 186-212
Despotović-Zrakić, M, Simić, K, Labus, A, Milić, A, & Jovanić, B 2013, ‘Scaffolding Environment for e-Learning through Cloud Computing’, Journal Of Educational Technology & Society, 16, 3, pp. 301-314
Foster, J, & Lin, A 2007, ‘Approaches to studying and students’ use of a computer supported learning environment’, Education For Information, 25, 3/4, pp. 155-168
Hsiu-Fen, L 2008, ‘Empirically testing innovation characteristics and organizational learning capabilities in e-business implementation success’, Internet Research, 18, 1, pp. 60-78
Jerome Dauw-Song, Z, & Chih-Te, L 2010, ”The Antecedents And Consequences Of E-Service Quality For Online Banking’, Social Behavior & Personality: An International Journal, 38, 8, pp. 1009-1018
Lin, H 2013, ‘The effects of knowledge management capabilities and partnership attributes on the stage-based e-business diffusion’, Internet Research, 23, 4, pp. 439-464
Lucia-Palacios, L, Bordonaba-Juste, V, Polo-Redondo, Y, & Grünhagen, M 2014, ‘E-business implementation and performance: analysis of mediating factors’, Internet Research, 24, 2, pp. 223-245
Ragothaman, S, Lavin, A, & Davies, T 2007, ‘P’Perceptions Of Accounting Practitioners And Educators On E-Business Curriculum And Web Security Issues’, College Student Journal, 41, 1, pp. 59-68
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