Sunday, June 21, 2009

E-Commerce Success and its Causes

Nowadays, there is a trend that most of the purchase transactions are conducted through online.Consumers are more likely to purchase in this way is simply because of the purchasing process is much more easier and faster when compared to offline purchase. For instance, without wasting time and energy to conduct survey, consumers are able to make a quick comparison among various products with only one user action (click). These competitive advantages have contributed to the success of enormous amount of companies and one of the great example is Amazon.com.

Amazon.com is an American electronic commerce company which famous in selling its books. The company was founded by Jeff Bezos in 1994 and based in Seattle, Washington. Amazon.com ventured beyond books and now it offers various line of product such as DVDs, MP3s, electronics, computers, video games, kitchenware, etc. On January 15, 2009, Amazon.com was the UK's favourite music and video retailer, and came third in overall retail rankings in a survey published by Verdict Research.

Why is Amazon.com so successful?

  • Brand name - Amazon.com is trustworthy on its reputation for reliability. It is a site that is easy to navigate. It has developed loyal base customer, and attempt to cultivate them by continually lowering prices and adding features to their Web sites as written in CBS news.

  • One click order system - A specific example would be Amazon's pioneering of the "1-click" ordering system which ease the customer to return to place new orders without having tediously re-enter basic and payment information.
  • Personalize web-based model - Every single customer has a unique webpage and personalized in different methods. For instance, if the customer has made a recent purchase and again visited Amazon.com, the message might read, "Hi Alan, welcome back!" Amazon.com also sent out personalized coupons or emails to customers who had not visited the site for a period of time.

Besides that, an interview with Maryam Mohit, the V.P. of Site Development, Amazon.com which mention about the secret of Amazon.com, the challenges and also the future of Amazon.com There are numbers of minor reasons underlying behind the success of Amazon.com which are not mention above. If you guys are interested to know more, feel free to look up in ecommercetimes.

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