Ziyi chen
Now, Amazon is one of the most famous e-commerce retailers in the United States. In Figure 1, from 2004 to 2015, the net revenue of Amazon is consistently increasing every year and have earned $107.01 billion in 2015. We could observe that the speed of development is getting quicker in recent 5 years. The rapid growth rate of Amazon should be associated closely with its customers. From the other data shows, the number
of active customer accounts also developed sharply between 1997 to 2015. Amazon only had 1.5 million customers in 1997, but it increased to 304 million in 2015 (Statistas, 2016). Amazon started out predominantly a retailer for online book store and has added many products such as mobile capabilities in recent 20 years. It is still famous as the big amount of online books. The average number of books to be added into Amazon website per hour is 12 units, and the estimated numbers of books available on Amazon is 3.4 million (Smith, 2016). The timely updating rate of books and large resources base attracts new customers who could not find specific books in local stores or other retailing websites. …show more content…
The good reputation of Amazon also keeps customers loyalty. The stable increasing rate of newly customers may bring much more profits for Amazon. There still exists many weaknesses and strengths of Amazon operation. In the following part, I point out 3 strengths of Amazon. Firstly, developing as an online book retailer, Amazon has extended their product line and increased many kinds of categories for different customers. When you type the word “tablet” in the searching place on Amazon, there would appear more than 600,000 items which are related to tablet for customers to choose from. Amazon pays more attention on the variety of items. The top 3 popular mobile products on Amazon are: smartphones, ultra-thin laptops and Ultra-books (Olenick, 2013). They not only be satisfied with the tiny profits for selling books, but also extends their product lines to other fields. Nowadays, you could find almost everything on Amazon. Secondly, Amazon is one of the largest online retailers all over the world and was among the world’s top 10 brands in 2015. Compared to its closely competitors-eBay, the net revenue of Amazon with $88,988 million exceeded eBay with $17,902 million for many times in 2014 (Amazon.com, 2014). The good reputation and powerful competitiveness help Amazon to develop in intense market competitions. Finally, Kindle e-reader which was launched by Amazon in late 2007 make much profit for Amazon. Estimating the sales of Kindle stood at about 20 million and made $3.9 billion revenues for Amazon in 2013. Kindle e-reader take a large portion of e-reader market share and there may be roughly 30 million people to use Kindle e-readers (Trefis team, 2014). There exist few weaknesses of Amazon retail selling. The most serious weakness of Amazon that is compared to many startups like Postmates, Instacart and so on is lacking of mastering mobile skill. Mobile commerce is developing rapidly these years. People would like to choose mobile shopping than traditional desktop shopping. Amazon just ported the website into an app rather than making a different and more convenient mobile experience for customers. For example, a new delivery service app named ‘Wun Wun’ creates a special service for customers that they could send
Now, Amazon is one of the most famous e-commerce retailers in the United States. In Figure 1, from 2004 to 2015, the net revenue of Amazon is consistently increasing every year and have earned $107.01 billion in 2015. We could observe that the speed of development is getting quicker in recent 5 years. The rapid growth rate of Amazon should be associated closely with its customers. From the other data shows, the number
of active customer accounts also developed sharply between 1997 to 2015. Amazon only had 1.5 million customers in 1997, but it increased to 304 million in 2015 (Statistas, 2016). Amazon started out predominantly a retailer for online book store and has added many products such as mobile capabilities in recent 20 years. It is still famous as the big amount of online books. The average number of books to be added into Amazon website per hour is 12 units, and the estimated numbers of books available on Amazon is 3.4 million (Smith, 2016). The timely updating rate of books and large resources base attracts new customers who could not find specific books in local stores or other retailing websites. …show more content…
The good reputation of Amazon also keeps customers loyalty. The stable increasing rate of newly customers may bring much more profits for Amazon. There still exists many weaknesses and strengths of Amazon operation. In the following part, I point out 3 strengths of Amazon. Firstly, developing as an online book retailer, Amazon has extended their product line and increased many kinds of categories for different customers. When you type the word “tablet” in the searching place on Amazon, there would appear more than 600,000 items which are related to tablet for customers to choose from. Amazon pays more attention on the variety of items. The top 3 popular mobile products on Amazon are: smartphones, ultra-thin laptops and Ultra-books (Olenick, 2013). They not only be satisfied with the tiny profits for selling books, but also extends their product lines to other fields. Nowadays, you could find almost everything on Amazon. Secondly, Amazon is one of the largest online retailers all over the world and was among the world’s top 10 brands in 2015. Compared to its closely competitors-eBay, the net revenue of Amazon with $88,988 million exceeded eBay with $17,902 million for many times in 2014 (Amazon.com, 2014). The good reputation and powerful competitiveness help Amazon to develop in intense market competitions. Finally, Kindle e-reader which was launched by Amazon in late 2007 make much profit for Amazon. Estimating the sales of Kindle stood at about 20 million and made $3.9 billion revenues for Amazon in 2013. Kindle e-reader take a large portion of e-reader market share and there may be roughly 30 million people to use Kindle e-readers (Trefis team, 2014). There exist few weaknesses of Amazon retail selling. The most serious weakness of Amazon that is compared to many startups like Postmates, Instacart and so on is lacking of mastering mobile skill. Mobile commerce is developing rapidly these years. People would like to choose mobile shopping than traditional desktop shopping. Amazon just ported the website into an app rather than making a different and more convenient mobile experience for customers. For example, a new delivery service app named ‘Wun Wun’ creates a special service for customers that they could send