An example of an E-Commerce success and its causes

Amazon.com

Jeffrey Preston Bezos (born January 12, 1964) - the American founder, president, chief executive officer and chairman of the board of Amazon.com




Amazon.com has a leading edge in the e-commerce world. It has a strong customer base, name recognition, quality assurance, and immense inventory. The ease of use over the Internet has been an important facet Amazon has focused on; more specifically their "1-Click" feature of their web-design allows quick and easy use of their services.


What are the critical success factors of Amazon.com?

Differentiation

Amazon.com is more than just a bookstore. It delivers author interviews,
customer book reviews, pre-release information and out-of-print books by special order. Back office systems and cookies deliver personalized book recommendations to shoppers who have purchased books from Amazon.com. A book recommendation agent tells the prospective buyer "Customers who bought this book also bought:". In all these cases information about the customer and information technology are being used to enhance the customer experience.


Price Differentiation

Amazon differentiates itself mainly on the basis of price and by making sure that it offers the same quality products as any other company with a noticeably lower price. In addition, sellers do not pay any fees for product listing and it cost nothing until the product is sold.


Personalizing Website

Amazon greets customers personally when they open the sites and gives them a choice of products that matches their personal preferences.

Video : Amazon.com 's Warehouse

Identify and compare the revenue model for Google, Amazon.com and ebay

Google revenue model mainly is based on advertising. For year 2006, google generated US$ 10,492 billions in advertising and US$112 millions in licensing and others. One of the google revenue model is from Google AdWords.

Google AdWords is a pay per click advertising program of Google designed to allow the advertisers to present advertisements to people at the instant the people are looking for information related to what the advertiser has to offer.

For example:




Amazon.com also is one of the most successful e-commerce providers in which its revenue model are mostly generated from transaction fees, affiliate fees and subscription fees. Amazon started as an online bookstore, but soon diversified its product lines from DVD to food.
They also have to rate the product on a rating scale from one to five stars. Moreover, the users are allows to comment on reviews. The key successful of Amazon.com is online shopping. This is the example of Amazon.com homepage.







For eBay, is an online auction and shopping Web site in which people and businesses buy and sell goods and services worldwide. Ebay allow people to bid any time any where, this convenience has increase the number of bidders. It also owns PayPal, Skype, StubHub, and other business. Thus, it has various types of revenue models included advertising fees, affiliate fees and other revenue sources but it main revenue model is from online auction and online shopping.

Refences :

E- commerce site : Revenue model of Google, Amazon and eBay

E- divas : Revenue model of Google, Amazon and eBay