Amazon.com Inc. is an electronic commerce based organization which has its base in Seattle, Washington. The organization was established by Jeff Bezos in the 1994 and further had shown extensive amounts of development in the online retail industry. Amazon.com has thereby developed the position of the largest internet based retailer in the world with respect to the total revenues and market based capitalization. The most important part of the success that has been achieved by Amazon in the industry is the customer first policy implemented by Bezos (Amazon.com, 2018).
The report will be based on the study of the ways by which Amazon is able to develop an effective relationship with the customers and selling based process that is used by the company.
Relationship Selling
As discussed by Choudhury and Harrigan (2014), the relationships with customers is managed by Amazon with the help of proper integration of CRM or Customer relationship management software. The organization is able to develop effective recommendations for the customers with the proper analysis of data which is available about the previous purchase made by them. The customers are allowed to purchase products from the website and further provide their opinions as well. The highest levels of data efficiency have been gained by Amazon with the aim of providing best service to the customers. The recommendations which are provided by Amazon in the website play a key role in the purchase based process.
Evolution of the Selling Model
According to Hassan et al. (2015), the selling model that has been developed by Amazon is highly efficient and free of complications. The organization provides an effective platform to the sellers in order to display their products and offer them to appropriate customers. The amounts which are charged by the company to sellers are based on different categories of products that are offered by them to the sellers. Amazon has thereby developed a selling model which is highly efficient in nature and has attracted the small scale sellers from all over the world.
As argued by Homburg, Jozi? and Kuehnl (2017), the shipping related rates are also decided by the management of Amazon so that best levels of products can be offered to the customers within affordable rates. The organization has been successful in beating the business model which is implemented by Ebay. The selling model of Amazon has been helpful in providing effective levels of support to the other functions that are conducted by the company. The sales procedure which has been developed by Amazon is able to complement the relationships which have been developed with the customers and the sellers of the company as well.
Ethics
According to Khodakarami and Chan (2014), the culture of Amazon has been under investigation based on the ways by which the employees are treated and different ethical practices as well. The organization has however faced some major issues based on the high turnover rates and the unions developed by employees. The results of many researches have depicted that Bezos was not successful in leading the company from the ethical perspective. The welfare of employees has not been provided with much importance by the company. However, the CEO of Amazon is quite clear about his requirements and expectations from the employees. This factor is able to support the ethical base of leadership style which is followed by Bezos.
As discussed by Kumar and Reinartz (2018), the culture which has been developed by Bezos in Amazon can be considered to be highly unappealing in nature which however does not completely proves his leadership to unethical. The most important featured of leadership of Bezos was based on the ways by which he made his expectations clear with the employees. A major issue which has been raised against Amazon is based on preference which is provided to the own products of the company when customers wish to choose the products. The organization makes the use of algorithms in order to provide high levels of visibility to the products which Amazon itself offers to consumers. The CEO of Amazon aims at solving these issues in an effective way by making changes in the algorithms so that similar levels of opportunities can be provided to different sellers who offer their products on the company website (Nyadzayo & Khajehzadeh, 2016).
Creating Value with a Relationship Strategy
The customer relationship strategy which has been implemented by Amazon has played a major role in the development of value for the customers. The company aims at analysing the needs and demands of the customers with the help of data that is available based on their previous purchases. This has played a major role in the ways by which the company has provided recommendations and suggestions to the customers and increase levels of engagement. The value that is created by the company for its customers is quite high which has been an important part of the effective processes of Amazon in the online retail industry (Tseng, 2016). The various customer touchpoints which are available within the organization have been managed by the company in order to connect with them effectively.
Communication Style
According to Kumar and Reinartz (2018), the levels of communication and service which is provided to the customers is considered to be an important part of the position which has been developed by Amazon. The organization has been successful in transforming the customer service based activities in an effective manner. The proliferation of the reviews provided by the customers and the real-time recommendations which are offered to them is considered to be a major part of the effective relationships developed by Amazon. The shipping related support which is provided by Amazon to the customers is considered to be important for the development of relationships based on effective levels of communication.
Conclusion
The report can be concluded by stating that Amazon has been able to develop its place in the online retail industry with the help of its effective strategies. The levels of communication and the service which is offered to the customers is considered to be a major contributor to the success achieved by Amazon in the industry. The selling based process undertaken by the company is thereby considered to be highly important for the ways by which Amazon develops relationships with the customers.
References
Amazon.com (2018). Amazon.com: Online Shopping for Electronics, Apparel, Computers, Books, DVDs & more.
Choudhury, M. M., & Harrigan, P. (2014). CRM to social CRM: the integration of new technologies into customer relationship management. Journal of Strategic Marketing, 22(2), 149-176.
Hassan, R. S., Nawaz, A., Lashari, M. N., & Zafar, F. (2015). Effect of customer relationship management on customer satisfaction. Procedia economics and finance, 23, 563-567.
Homburg, C., Jozi?, D., & Kuehnl, C. (2017). Customer experience management: toward implementing an evolving marketing concept. Journal of the Academy of Marketing Science, 45(3), 377-401.
Khodakarami, F., & Chan, Y. E. (2014). Exploring the role of customer relationship management (CRM) systems in customer knowledge creation. Information & Management, 51(1), 27-42.
Kumar, V., & Reinartz, W. (2018). Customer relationship management: Concept, strategy, and tools. Springer.
Nyadzayo, M. W., & Khajehzadeh, S. (2016). The antecedents of customer loyalty: A moderated mediation model of customer relationship management quality and brand image. Journal of Retailing and Consumer Services, 30, 262-270.
Tseng, S. M. (2016). Knowledge management capability, customer relationship management, and service quality. Journal of enterprise information management, 29(2), 202-221.
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