E-commerce and Amazon.com

Paper Summary:

The paper discusses the need for a Unique Selling Proposition (USP) and concludes that Amazon's USP is the number of volumes that it's offering. The paper defines the terms "macrosite" and "microsite", and concludes that Amazon is one of the former. The paper discusses Amazon's use of associates to allow individuals to become extensions its sales force. It discusses the gap between sales volume and share price between "dot com" companies and traditional retailers, and analyzes Amazon's profit margin. It reviews competitors like Barnes and Noble, Borders and BooksOnline. The paper recommends that Amazon continue using the 80-20 formula, giving away 80% and charging for 20%. In conclusion, the paper recommends that Amazon must now concentrate on profit and value so that it can compete, over the long-term, in the new and expanding market of on-line book selling.

Table of Contents:
Introduction
The Strategy
The Question of Profit
Amazon's Business Practices
The Competition
What is to be Done?
Works Cited

From the Paper:

"Amazon.com also has changed its return policy because of customer criticism Previously, its return policy states that a customer can return a book if it is in new condition, a policy similar to that of most bookstores. But now, if a book that has been recommended by Amazon is a disappointment to a reader, then they can return it dog-eared for a full refund. This change is important not only because of Amazon's great need to form relationships with its customers, but because on-line buying does have a set of weaknesses that bookstore buying does not."

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