We wonder by watching the world that how the aspect of lifestyle is taking a new shape, with the use of new technology in life. The different aspect of lifestyle generates new opportunities for the retailer’s shop and the same with online retailers.
The online retailers or whole chain of retailers in one platform is known as an E-Commerce business. There some big market leaders with names like Flipkart, Amazon, Paytm in the online business of India.
So, today we will discuss the business model of Amazon India, an American multinational technology company & what makes it unstoppable. Amazon started with selling music & videos in 1998 and now it becomes one of the Big 4 technology company.
When Amazon enters in India there are lots of challenges that they were facing like Restriction on foreign companies to come and sell their goods in E-commerce. Earlier, Only 12% of people were using credit/debit cards so they have to introduce COD (Cash On Delivery) due to which certain problems has faced by the company. India has a wide market, there was no lack of products that they don’t have at that time also, so they need to connect vendors. But Local vendors don’t believe in E-commerce platform and they think it is complex & Waste of time.
Now let’s see how they convert these challenges into opportunity. As internet users and social media websites were on high growth in 2013-14 They created a need through knowing their consumers by a huge amount of data which is called Big Data. If a person searches any goods on website or any portal that data, their choices according to person punches Amazon can see the needs and trends that people of different state and cities are Fascinated. So the company can buy that type of products in their fulfilment centre. Then comes predictive analysis which shows seasonal prediction and the same in other products.
In terms of Big data, the world’s biggest cloud storage company is Amazon. Which is Amazon Web Services (AWS)? If you have your website then you need to store it that is call server. Amazon provides that server. In that AWS so many websites were listed so they have a huge amount of data like which type of pages people do like, Ranking of websites, can study competitors, which page has more traffic etc.
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Why prices in Amazon are lower with compare to Stores? Some of the reasons that, Vendors need to list their products in Amazon for selling it, due to more competition in sellers prices are low. Amazon also takes Commission and advertising fees from sellers if they want to show their products on the top search list. By that offline sale will go down. Amazon also owns IMDb, Goodreads, Alexa, Kindle, Fire TV stick, Audible, Amazon Prime, Amazon Pay, Amazon Echo, Amazon Music, Amazon books, Amazon Game studio etc.
We hope that our article on the business model of Amazon has helped you to know something new. We appreciate your comments on this website article.
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