Question: do brief conclusion based on the ecommerce business model of Amazon

Amazon

2. Business Model

Amazon's Value Propositions

Jeff Bezos defines that Amazon's business model is based on three value propositions: low price, fast delivery, and a wide selection of products. However, looking at these three consumer benefits, we can say that Amazon's greatest value proposition is convenience because the audience understands that, with just the help of a device connected to the internet, they have access to the product catalog of the largest retailer in the world, with a reasonable price and an agile, safe and reliable delivery service.

3. Amazon

Rival/ competitors

Alibaba Group

The third rival that Amazon has is the Alibaba group. The Alibaba group is a Chinese multinational company that is founded in 1999 by Jack Ma. There are a few different subsidiaries that operates other than the parent firm. The main ones are referred to as Alibaba.com and subsidiaries refers to as Taobao, Tmall and AliExpress.

The Alibaba.com is a B2B marketplace, it is the flagship subsidiary of the Alibaba Group. It competes with Amazon for retailers looking to buy products in bulk and resell for a profit. Alibaba.com provides businesses with direct access to manufacturers of different goods, helping them avoid middlemen and save on unit pricing.

Other than that, Taobao, Tmall and AliExpress are B2C ecommerce operations. These companies compete with Amazon on selling electronics, clothes, accessories, and gadgets at low prices.

Amazon

Rival competitors

eBay

The first rival that amazon is eBay. eBay is a huge ecommerce platform that directly competes with Amazon for online sales. Unlike Amazon, eBay facilitates only third-party sellers. In other words, eBay does not have its own products. Its auction style makes it a top choice for buyers, especially those who want to shop on a budget. Amazon does not allow buyers to bid for products, so this may be eBay's strategy for sales. eBay allows sellers to list first 50 products on the online marketplace platform free of cost. After that eBay will charges listing fee on each item. Other than that, advertisement also other revue model of eBay. Online marketplace websites like eBay sells advertising on their websites that go on external websites. eBay also own some classified ads that generate some revenue for the online marketplace platform.

3. How Amazon stayed above its competitors:

Amazon is great at enhancing the shopping experience.

Bezos introduced a system that generates recommendations for customers when they rate a few dozen books. Customers lazy so he changed up the system to become more automated, where the system detects the customer tastes based on their browsing history, past purchases, and data of other users with shared behaviour. The algorithm pointed customers towards books they may have not known of but would probably enjoy. This is a huge advantage Amazon has over other retailers, especially offline retailers. This personalisation system put Amazon's sales through the roof. Nowadays the algorithm is even more advanced and can anticipate users needs, wants, desires and customise the shopping experience for each user uniquely. This encourages customers to return.

How amazon stayed above their competitors:

Amazon have a Customer Friendly 30 day return policy.

When Amazon launched its services in 1995, online shopping was new to many and as is usually the case, it was met with resistance given the insecurities that customers had to accept in online shopping. Therefore, Amazon had to look for ways to inspire consumer confidence and overcome their fear of the quality of products on sale. In order to help consumers overcome the fear of 'Unknown Quality' and to position its service in the consumer's minds, Amazon introduced the concept of a '30-day return policy'. Amazon also made it effortless and quick to return a product in case the consumer was not satisfied with it. Amazon company had used best web design practices and made it easy for all consumers to locate the 'Return & Replacements' menu and submit return requests in easy-to-follow steps.