Amazon Value Proposition

Its value proposition was mainly the ease of election and convenience to the book lovers and they translated the same value in the other segments after diversifying. Its revenue model is Sales revenue model as it derives its revenue from selling of goods, information and services. It also derives a majority of its sales from third party sellers who sell product on Amazon. Process followed and issues faced while selecting the company: Before starting with which company to pick for, tried to understand about the history of the e-commerce as discussed in detail in class.

Essay Example on Amazon Value Proposition

Then, searched to find some of the best known e-commerce companies. There were issues like there is too much information on the internet and there is not one particular company which one can find complete to understand at this junction of the course. Have taken this particular company because of its repeated reference in all the books and lectures. Also, another reason for picking up this company is that Amazon does not only act in the ICC domain but also EBB.

Along with that it was a first mover in its market place so it will be interesting to know how they managed it.

My objective will be to understand its current value proposition and revenue model. Talking about revenue model, noticed one thing that although it is primarily sales revenue model but it also allows companies to advertise their products by paying to be listed as featured products. So, is it purely a sales model or has an essence of advertising model also? This question will try to understand in detail.

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One other objective which I would like to cover in this course is that in year 201 3, it entered Indian e-commerce market as Amazon. In.

The difference in he Indian scenario is that due to regulatory hurdles, it can not own any of the merchandise it sells. So, it primarily acts as a sales channel. Therefore, it will be interesting to study how they will tweak their business model to stay competitive against local and established players like Flippant, Snappers etc.