Amazon Company Profile
Amazon (Amazon.com, referred to as the Amazon, NASDAQ: AMZN), a network is the largest e-commerce company, located in Seattle, Washington. The company is one of the oldest on the network began operating e-commerce, in the company name, including the Alexa Internet, a9.com, and the Internet Movie Database (Internet Movie Database, IMDB) three subsidiaries.
Amazon was founded in 1995, began operating only one book sales network, now extends to a very wide range of other products, including DVD, music CDs, computers, software, video games, electronics, clothes, furniture, etc. .
Amazon in the July 16, 1995 by Jeff Bezos (Jeff Bezos) established a beginning called Cadabra.com. Nature is the basic network bookstore. But Bezos has a vision to see the potential and characteristics of the network, when large bookstores entity providing 200,000 book, online bookstore can provide more than 200,000 books more choices to the reader. So Bezos will Cadabra.com to nurture the most variety of organisms on Earth re-named the Amazon River, in July 1995 reopened. The company originally in 1994 in Washington state registration, registration changed to Delaware in 1996, and the stock market at the May 15, 1997. Code is AMZN, a surge of $ 18 (after the stock split is currently a surge of about $ 50).
Amazon's initial plan was originally developed in 4-5 years after the start there is profit, the dotcom bubble in 2000 resulted in the growth of Amazon's smooth style has become unique story, in the 1990s, a considerable number of fast-growing Internet companies, when Amazon's Bezos shareholders kept complaining too conservative business strategy and slow, and the Internet bubble, those fast-growing Internet companies have closed down, there are only Amazon profit in the fourth quarter 2002, the net profit of about Amazon 5 million dollars. 2004 will grow to more than 300 million dollars.
[Edit]
Business acquisitions Amazon
1998, Amazon acquired IMDb.com.
June 1999, Amazon acquired Alexa.
2003, Amazon acquired its rival online music store CD Now.
2004, Amazon acquired Joyo in China.
[Edit]
Amazon business sales
Amazon's marketing activities on its website the most fully embodied. Amazon is also investing in marketing impressive: Now, Amazon would come up with every $ 1 of income of 24 cents to engage in marketing, pull customers, while traditional retail stores spend only 4 cents is enough. Amazon to save more money on the sales price down above. Forming a very strong appeal.
Amazon's marketing strategy are:
(1) Product Strategy
Amazon depending on the type of goods sold, divided into three categories: books (BOOK), music (MUSIC) and video products (VIDEO), each class has set up a special page. Meanwhile, each page is also very easy to see a few other pages and message content, it will book a different commodity classification, and various electronic goods implement different marketing strategies and promotional tools.
(2) Pricing Strategy
Amazon uses a discount pricing strategy. The so-called discount strategy is an enterprise in order to stimulate consumers to increase the purchase, give rebates on certain raw commodity prices. It does this by expanding sales to make up for discount costs and increase profits. Amazon Bookstore for most commodities have given a considerable amount of the rebate. For example, in music class commodities, bookstore promises: "You'll enjoy everyday savings of up to 40% on CDs, including up to 30% off Amazon.com's 100 best-sellong CDs (on CD category to 40% discount including the best-selling CD of 30% of the rebate). "
(3) promotion strategy
Common marketing approach, that companies and customers as well as public communication tool, there are four. They are advertising, personal selling, public relations and sales promotion. In the Amazon website, in addition to personal selling, the rest is reflected.
Enjoy the bookstore does not necessarily whether you want to have enough money to buy books, but that the selection process of the book. Hands holding the book, watching the beautiful cover, read the Introduction of a textbook is often great fun. On Amazon's home page, in addition to not directly Pengdao book, but this does not diminish the fun. Exquisite multimedia pictures, clear the contents of the profile and authority of the book reviews can give people a feeling of being there.
On the home page where the ad is also very reasonable, and the first is the best book of the day, then the most recent best-selling book about, as well as book club recommendation, as well as the famous author of the recent book and so on. Not only a large number of multimedia advertising on Amazon's website, and on other relevant web sites often can see it's advertising. For example, you can see on the Yahoo! ad Amazon book search site.
There is also a major feature of the ad bookstore lies in its dynamic real-time. Every day replacement advertising space allows customers to learn the latest and most authoritative publication reviews. Not only advertising changed every day, every hour you can also read a message from replacing "Chech out the Amazon.com Hot 100. Updated hourly" in.
Amazon do everything possible to promote their own outlets, constantly seeking partners (associate). Since there are many partners and brokers, allowing customers access to its convenience outlets and shopping opportunities are greatly increased, and it even generously made the following commitments: As long as you become a partner of the Amazon bookstore, then sold by your network out of the book, regardless of whether a certain quota, Amazon will pay you 15% of the referral fee.
This is the other cooperative partnerships rare. Currently, Amazon's partners have been many, from the following passage on the page "In fact, five of the six most visited Web sites are already Amazon.com Associates. Yahoo! And Excite are marketing products from their Web sites .. So are AOL com, Geocities, Netscape, and tens of thousands of other sites both large and small ", we can see that: the site includes Yahoo! and Excie including the five most frequently accessed has become Amazon partners.
Amazon page specifically set up a gift for adults and children are prepared for a wide variety of gifts. This is actually the value of the event promotion business promotion strategy. It attracts customers by offering coupons or special gifts to customers of all ages method of long-term purchase of the store merchandise. In addition, Amazon also for customers to buy their goods to give long-term benefits, it is also a measure to promote the business.
Amazon special gifts page for online shoppers (including adults and children) to provide small gifts which both belong to a sales promotion activities, but also belongs to a public relations campaign; then there is between the enterprise and the public good communication, it humbly listen to collect all kinds of public and relevant intermediaries of the companies and their products, reflecting the services to them, and internal staff to provide business situation of enterprises, often communicate information; company also for the first time on the bookstore customer network to provide a page, use the Internet to provide customers with a variety of approaches that will help customers familiar with as soon as possible, and this is a way to improve public relations.
[Edit]
Amazon sales service
(1) Search Engine
A bookstore, if all of its books and audiovisual products are all listed, but is not necessary for the user is also very convenient. Therefore, set the search engine and user-friendly navigator buying has become an essential technology measures bookstore. At this point, Amazon's home page will do very well, it offers a variety of full range of search methods, there is a search for the title, search for topics, search for keywords and authors search, while also providing a series of such best-selling titles, winning music, top-grossing movie so navigator, and in any page in the bookstore offers such a search device to facilitate users to search, to guide users purchase. This is actually a kind of technical services, attributed to the pre-service one.
(2) the customer's answers to technical questions
In addition to search services, the bookstore also provides common answers to technical questions of customers for this service. For example, the company specializes in providing a FAQ (Frequently Asked Questions) page, answer some questions frequently raised by users. For example, how to make electronic payments online? Customers need to pay for transportation costs how much? How to order stock book? And so on. And, if you personally have a special problem, the company will specially for you to answer.
(3) user feedback
Amazon outlets provide e-mail, surveys, etc. to obtain user feedback on its business site. User feedback is both a service, but also the business sales market analysis and forecasting basis. E-mail often have customer comments and suggestions on merchandise. Bookstore hand to solve the user's opinion, which is actually a service activity; on the other hand, you can also get a lot of useful information from the e-mail market, often as a guide to the future of the business strategy of the company foundation, which is actually is a kind of market analysis and forecasting activities. In addition, it is also often invited users on the Internet to fill out some questionnaires, and use some free software, gift or a service to encourage users to send e-mail to feedback.
(4) Readers Forum
Amazon outlets also provide a similar readers BBS forum, the role of this service project is great. The main purpose of the enterprise business sites open forum is to attract customers to the reader to understand the market dynamics and guide the consumer market. Readers forum can be carried out in a hot topic for discussion. In some of the hot topics, and even cause extreme public interest in the topic, guide and stimulate the consumer market. At the same time, you can start the online club by club stable existing customer base and attract new customers. Through the analysis of the public interest in the topic and grasp the market demand trends, so that users are interested in the distribution of books and audio-visual products.
[Edit]
Amazon logistics promotion strategy [1]
The world's largest online bookstore Amazon online bookstore to become profitable by the end of 2002, this is the gospel of global e-commerce development. U.S. Amazon online bookstore since July 1995 opened in the United States, has experienced seven years of development. To the end of 2002 40 million Internet users in 220 countries around the world have in the Amazon bookstore to buy the goods, the total number of commodities Amazon to provide consumers has reached more than 40 million. With the development of electronic commerce in recent years in frustration, many of his followers have fallen during the wayside, Amazon has tenaciously survived and come to the fore, creating an exciting performance: third-quarter net sales in 2002 amounted to 8.51 billion, an increase of 33.2% over the previous year; net sales in the first three quarters of 2002 amounted to $ 2.504 billion, an increase of 24.8% over the previous year. While the first three quarters of 2002 has not yet profitable, but the net loss amounted to $ 152 million, compared with a 73.4 percent decrease over the same period last year, sales in the fourth quarter of 2002 was $ 1.43 billion, realized a net profit of $ 300 million, is the second quarter earnings. Amazon's profitability undoubtedly great inspiration B2C e-commerce company.
Why e-commerce development in general frustrated when Amazon banner does not fall? What makes Amazon today's performance? The rapid development of the Amazon show? With this series of questions and thinking about the development process of exploring the Amazon, we were surprised to find that after the study, it was known by many e-commerce development "bottleneck" and the biggest obstacle to saving the Amazon logistics, logistics created the Amazon today's performance. Then study the survival and development of the Amazon to bring experienced business which we are now useful inspiration it?
One revelation: Amazon Logistics is a means of promotion
In the difficult days of e-commerce, Amazon launched an innovative, bold ?? promotion strategy to provide customers with free delivery service, and continue to lower the threshold for free delivery service. So far, Amazon has three times to take such promotions. The first two free shipping threshold were $ 99 and $ 49, in August 2002 the Amazon free shipping threshold in turn reduced by half, began shopping the total price of more than 25 U.S. dollars in customer delivery service free of charge, in order to to promote the growth of sales operations. Free shipping greatly inspired the people of consumer enthusiasm, while e-commerce so that those doubts, worry that online shopping is expensive netizens quickly join the ranks of Amazon consumers (for a long time, consumers will enjoy quality service and believe face more high cost, apparently Amazon has changed this point), so that Amazon's customer base expanded to 40 million people. The resulting huge economic benefits: the third quarter of 2002 books, music and video products sales compared with the same period last year increased by 17%. Logistics and sales promotion and influence on, "Logistics is competitive tool" to get the best interpretation in the Amazon business practice.
For many years, online shopping is expensive reality is that consumers choose to abandon the main factors of e-commerce and adhere to a physical store shopping, e-commerce companies also contributed to the loss of customers, an important reason for business failure. In the e-commerce business in "high-rolling cold day urgent" critical moment, Amazon inventive, bold and logistics as a promotional tool, puerile, low-cost competition, the cost of logistics to dominate the market, to attract customers, expand market share. Obviously this strategy is correct, because captures the essence of the problem. According to a recent consumer market research company survey, online shoppers that during the holiday shipping fee discount attraction far more than any other means of promotion. While this strategy has also proved to be a success, since 2001, the price of the Amazon online products generally reduced by about 10%, making it the customer base reached 40 million people, which reached about 30 million people through the online consumer . To this end, the Amazon founder Bezos to foreign confidently declared: "Perhaps consumers will go to a physical store shopping, but certainly not because of price reasons." Of course, this business strategy is risky. Because if you can not absorb the cost of the resulting transfer heavy financial burden will fall short. So Amazon is how to solve these problems?
Inspiration two: cut costs is to ensure the success of Amazon's promotion
As mentioned previously secret lies in the Amazon earnings to provide customers with the purchase of large discounts and free shipping. However, this marketing strategy is two-edged sword: a huge increase in sales at the same cost. How to absorb the cost of which brought it? Amazon's approach is to spare no effort in financial management to cut costs: reduce spending, cut staff, and convenient to use advanced order processing system to reduce error rates, integration of shipping and inventory costs ...... savings by reducing logistics costs, equivalent to less promotional costs to obtain greater sales revenue, then the feedback on the consumer, in order to attract more customers, to form an effective virtuous circle. Of course this is Amazon's ability to control costs and logistics systems have made high demands. In addition, Amazon throttle while also actively looking for new profit growth point, for example, and cooperation for other online merchants sell new merchandise and many businesses, the sale of these businesses brand products to Amazon customers for commissions. So that Amazon customers can purchase a one-stop brand to many businesses, merchandise and original books, music products, and other products, both to provide more goods to customers, but also for its diverse selection and attract many consumer product information those who come to shop, while their own without additional inventory risk, has multiple purposes. These effective measures to cut expenditure Amazon an important guarantee for the success of low-cost promotions.
Revelation 3: improve the logistics system is the lifeblood of survival and development of e-commerce
E-commerce is the trade of goods and services of modern information technology and computer network basis, with trading virtualization, transparent, low cost and high efficiency. In e-commerce, information flow, business flow, capital flow activities can be completed online through the computer, but only to go through a real operational logistics processes are not like the information flow, capital flow that is virtualized. Therefore, as an integral part of the logistics of e-commerce has become a key factor in the decision of e-commerce benefits. In e-commerce, if the logistics lag, low efficiency, poor quality, the e-commerce economy, convenient and quick advantage no longer exist. So improve the logistics system is to determine the survival and development of e-commerce lifeline. Analyze the reasons for the failure of many e-commerce business, in large part due to the failure of the logistics on. Amazon's success is also due to its success in the logistics. While Amazon is an e-commerce company, but its logistics system is perfect, is not inferior to entities. Because a sound, optimized logistics system as a guarantee, it can be logistics as a means of promotion, and the ability to strictly control the logistics costs and operate efficiently organize the logistics process. In these respects Amazon also has many unique features:
(A) to outsource the selection and distribution patterns.
Amazon in e-commerce will be its domestic distribution business entrusted to USPS and UPS, the international logistics entrusted to international shipping companies and other professional logistics company, will concentrate on developing its own core and core business. This can reduce investment, reduce business risk, but also make full use of the advantages of professional logistics companies, logistics cost savings.
(2) the inventory at the lowest level, the implementation of zero inventory operation.
Amazon by establishing a good working relationship with suppliers to achieve effective control of inventory. Amazon's inventory books rarely, maintain inventory of only 200 kinds of popular bestseller. Under normal circumstances, the Amazon is a customer books under the orders only after the purchase from the publisher. Book buyers to pay by credit card to Amazon's book section, but in the books Amazon sold 46 days after the payment to the publisher, which makes its cash flow much more smoothly than traditional bookstores. Because maintaining a low inventory, Amazon's inventory turnover is fast and getting faster since 2001. 2002 third quarter average inventory turnover number reached 19.4 times, while the world's largest retailer Wal-Mart's inventory turnaround times, but also about seven times.
(3) reduce the return ratio.
Although many types of goods Amazon operations, but because of the variety of goods to select the appropriate, reasonable price, product quality and distribution services to meet customer needs, so keep a very low return rate. Retired general traditional bookstore book rate was 25%, up to 40 percent higher, while the rate of return the books Amazon only 0.25%, far below traditional retail bookstores. Very low return rate not only reduces the return costs, but also maintained a high level of customer service and made good business reputation.
(4) for the post office to send goods to facilitate and reduce shipping costs.
In the delivery of the Amazon to take what is called the "post injection" to reduce shipping costs. The so-called "post injection" is to use their own trucks or by an independent carrier the entire truck to the local post office to order merchandise from Amazon warehouse warehouse, then shipping from the post office to the customer. This will be exempted from the post office for commodities handlers and steps to provide favorable conditions for the post office to send goods, but also saves money for themselves. It is a collaboration with Amazon delivery company estimates that by funding such "post injection" way to save the equivalent of 5% to 17% the price of an ordinary first class mail, very impressive.
(5) establish different according to the different categories of goods distribution center, distribution center operations to improve efficiency.
Amazon's distribution centers set up by commodity groups, different commodities from different distribution centers for distribution. This will help improve the degree of specialization and distribution center operations, making the organization work simplification, standardization, both to improve the efficiency of distribution center operations, but also reduce the cost of managing and operating distribution centers.
(6) adopt a "combination packaging" technology, expanding transport bulk.
When the customer to confirm the order on Amazon's website, you can immediately see the Amazon sales system according to the customer order is in stock merchandise issued, and the selection of shipping methods, estimated shipping date and delivery date and other information. As mentioned earlier, Amazon distribution center established according to different categories of goods, so the customer order is issued from different commodities in different locations in the United States different distribution centers. Because of Amazon's distribution centers to maintain only a small amount of stock, so after receiving customer orders, Amazon needs to check inventory and distribution centers, distribution centers, if not in stock, it is necessary orders to suppliers. It will cause some of the same piece of merchandise orders can be shipped immediately, while others need to wait. In order to save the customer waiting time, Amazon recommendations goods and merchandise in stock when ordering customers do not need to wait for orders placed on the same sheet. So that when the ship, the carrier can be from different customers, the same class, and distribution centers are also equipped with spot goods shipped in the same truck, thus shortening the waiting time after the customer orders, but also to expand the transport volume, improve transport efficiency and reduce transportation costs.
Perfect delivery terms, flexible delivery methods and precise reasonable fees reflect the Amazon distribution management of scientific and standardized.
Amazon's shipping terms very well, on its website, the customer can get the following information:
Special requirements for the auction of goods shipped, the estimated delivery time, free super saving shipping, in-store picking, require special handling and transportation of goods, recycling packaging materials, shipped, shipping rates, shipping restrictions, order tracking, etc. .
Amazon provide customers with a wide choice of shipping method and delivery deadlines. On the shipping method has to land and sea as the basic mode of transport "standard shipping", but also by air. The delivery period, according to the destination is domestic or different set of goods and abroad is in stock and the use of standard delivery, the 2nd and the 1st delivery delivery and so on. Depending on the shipping method and delivery period and category of goods, to take a different charge standards, batch fee charged at a fixed rate, there are several pieces of fees charged by number of pieces, there are fees charged by weight.
All this suggests that standardized scientific and legal distribution management and operation of the organization on the Amazon, and fine, to provide customers with a convenient, thoughtful and flexible delivery services to meet the diverse needs of consumers. Amazon with its low price and convenient services in the minds of customers to establish a good image, increase the trust of customers, and enhance its confidence in the future development.
In short, Amazon gives us a lot of inspiration, the most important thing is the logistics plays a vital role in e-commerce development. Some of the rapid development of the Amazon known as the "Amazon myth", if China's e-commerce businesses in the logistics business development can as a business development strategy, rational planning enterprise logistics system, develop the right logistics goals, effectively Logistics the organization and operation, then the Chinese e-commerce enterprises, Amazon myth is no longer distant.
Amazon (Amazon.com, referred to as the Amazon, NASDAQ: AMZN), a network is the largest e-commerce company, located in Seattle, Washington. The company is one of the oldest on the network began operating e-commerce, in the company name, including the Alexa Internet, a9.com, and the Internet Movie Database (Internet Movie Database, IMDB) three subsidiaries.
Amazon was founded in 1995, began operating only one book sales network, now extends to a very wide range of other products, including DVD, music CDs, computers, software, video games, electronics, clothes, furniture, etc. .
Amazon in the July 16, 1995 by Jeff Bezos (Jeff Bezos) established a beginning called Cadabra.com. Nature is the basic network bookstore. But Bezos has a vision to see the potential and characteristics of the network, when large bookstores entity providing 200,000 book, online bookstore can provide more than 200,000 books more choices to the reader. So Bezos will Cadabra.com to nurture the most variety of organisms on Earth re-named the Amazon River, in July 1995 reopened. The company originally in 1994 in Washington state registration, registration changed to Delaware in 1996, and the stock market at the May 15, 1997. Code is AMZN, a surge of $ 18 (after the stock split is currently a surge of about $ 50).
Amazon's initial plan was originally developed in 4-5 years after the start there is profit, the dotcom bubble in 2000 resulted in the growth of Amazon's smooth style has become unique story, in the 1990s, a considerable number of fast-growing Internet companies, when Amazon's Bezos shareholders kept complaining too conservative business strategy and slow, and the Internet bubble, those fast-growing Internet companies have closed down, there are only Amazon profit in the fourth quarter 2002, the net profit of about Amazon 5 million dollars. 2004 will grow to more than 300 million dollars.
[Edit]
Business acquisitions Amazon
1998, Amazon acquired IMDb.com.
June 1999, Amazon acquired Alexa.
2003, Amazon acquired its rival online music store CD Now.
2004, Amazon acquired Joyo in China.
[Edit]
Amazon business sales
Amazon's marketing activities on its website the most fully embodied. Amazon is also investing in marketing impressive: Now, Amazon would come up with every $ 1 of income of 24 cents to engage in marketing, pull customers, while traditional retail stores spend only 4 cents is enough. Amazon to save more money on the sales price down above. Forming a very strong appeal.
Amazon's marketing strategy are:
(1) Product Strategy
Amazon depending on the type of goods sold, divided into three categories: books (BOOK), music (MUSIC) and video products (VIDEO), each class has set up a special page. Meanwhile, each page is also very easy to see a few other pages and message content, it will book a different commodity classification, and various electronic goods implement different marketing strategies and promotional tools.
(2) Pricing Strategy
Amazon uses a discount pricing strategy. The so-called discount strategy is an enterprise in order to stimulate consumers to increase the purchase, give rebates on certain raw commodity prices. It does this by expanding sales to make up for discount costs and increase profits. Amazon Bookstore for most commodities have given a considerable amount of the rebate. For example, in music class commodities, bookstore promises: "You'll enjoy everyday savings of up to 40% on CDs, including up to 30% off Amazon.com's 100 best-sellong CDs (on CD category to 40% discount including the best-selling CD of 30% of the rebate). "
(3) promotion strategy
Common marketing approach, that companies and customers as well as public communication tool, there are four. They are advertising, personal selling, public relations and sales promotion. In the Amazon website, in addition to personal selling, the rest is reflected.
Enjoy the bookstore does not necessarily whether you want to have enough money to buy books, but that the selection process of the book. Hands holding the book, watching the beautiful cover, read the Introduction of a textbook is often great fun. On Amazon's home page, in addition to not directly Pengdao book, but this does not diminish the fun. Exquisite multimedia pictures, clear the contents of the profile and authority of the book reviews can give people a feeling of being there.
On the home page where the ad is also very reasonable, and the first is the best book of the day, then the most recent best-selling book about, as well as book club recommendation, as well as the famous author of the recent book and so on. Not only a large number of multimedia advertising on Amazon's website, and on other relevant web sites often can see it's advertising. For example, you can see on the Yahoo! ad Amazon book search site.
There is also a major feature of the ad bookstore lies in its dynamic real-time. Every day replacement advertising space allows customers to learn the latest and most authoritative publication reviews. Not only advertising changed every day, every hour you can also read a message from replacing "Chech out the Amazon.com Hot 100. Updated hourly" in.
Amazon do everything possible to promote their own outlets, constantly seeking partners (associate). Since there are many partners and brokers, allowing customers access to its convenience outlets and shopping opportunities are greatly increased, and it even generously made the following commitments: As long as you become a partner of the Amazon bookstore, then sold by your network out of the book, regardless of whether a certain quota, Amazon will pay you 15% of the referral fee.
This is the other cooperative partnerships rare. Currently, Amazon's partners have been many, from the following passage on the page "In fact, five of the six most visited Web sites are already Amazon.com Associates. Yahoo! And Excite are marketing products from their Web sites .. So are AOL com, Geocities, Netscape, and tens of thousands of other sites both large and small ", we can see that: the site includes Yahoo! and Excie including the five most frequently accessed has become Amazon partners.
Amazon page specifically set up a gift for adults and children are prepared for a wide variety of gifts. This is actually the value of the event promotion business promotion strategy. It attracts customers by offering coupons or special gifts to customers of all ages method of long-term purchase of the store merchandise. In addition, Amazon also for customers to buy their goods to give long-term benefits, it is also a measure to promote the business.
Amazon special gifts page for online shoppers (including adults and children) to provide small gifts which both belong to a sales promotion activities, but also belongs to a public relations campaign; then there is between the enterprise and the public good communication, it humbly listen to collect all kinds of public and relevant intermediaries of the companies and their products, reflecting the services to them, and internal staff to provide business situation of enterprises, often communicate information; company also for the first time on the bookstore customer network to provide a page, use the Internet to provide customers with a variety of approaches that will help customers familiar with as soon as possible, and this is a way to improve public relations.
[Edit]
Amazon sales service
(1) Search Engine
A bookstore, if all of its books and audiovisual products are all listed, but is not necessary for the user is also very convenient. Therefore, set the search engine and user-friendly navigator buying has become an essential technology measures bookstore. At this point, Amazon's home page will do very well, it offers a variety of full range of search methods, there is a search for the title, search for topics, search for keywords and authors search, while also providing a series of such best-selling titles, winning music, top-grossing movie so navigator, and in any page in the bookstore offers such a search device to facilitate users to search, to guide users purchase. This is actually a kind of technical services, attributed to the pre-service one.
(2) the customer's answers to technical questions
In addition to search services, the bookstore also provides common answers to technical questions of customers for this service. For example, the company specializes in providing a FAQ (Frequently Asked Questions) page, answer some questions frequently raised by users. For example, how to make electronic payments online? Customers need to pay for transportation costs how much? How to order stock book? And so on. And, if you personally have a special problem, the company will specially for you to answer.
(3) user feedback
Amazon outlets provide e-mail, surveys, etc. to obtain user feedback on its business site. User feedback is both a service, but also the business sales market analysis and forecasting basis. E-mail often have customer comments and suggestions on merchandise. Bookstore hand to solve the user's opinion, which is actually a service activity; on the other hand, you can also get a lot of useful information from the e-mail market, often as a guide to the future of the business strategy of the company foundation, which is actually is a kind of market analysis and forecasting activities. In addition, it is also often invited users on the Internet to fill out some questionnaires, and use some free software, gift or a service to encourage users to send e-mail to feedback.
(4) Readers Forum
Amazon outlets also provide a similar readers BBS forum, the role of this service project is great. The main purpose of the enterprise business sites open forum is to attract customers to the reader to understand the market dynamics and guide the consumer market. Readers forum can be carried out in a hot topic for discussion. In some of the hot topics, and even cause extreme public interest in the topic, guide and stimulate the consumer market. At the same time, you can start the online club by club stable existing customer base and attract new customers. Through the analysis of the public interest in the topic and grasp the market demand trends, so that users are interested in the distribution of books and audio-visual products.
[Edit]
Amazon logistics promotion strategy [1]
The world's largest online bookstore Amazon online bookstore to become profitable by the end of 2002, this is the gospel of global e-commerce development. U.S. Amazon online bookstore since July 1995 opened in the United States, has experienced seven years of development. To the end of 2002 40 million Internet users in 220 countries around the world have in the Amazon bookstore to buy the goods, the total number of commodities Amazon to provide consumers has reached more than 40 million. With the development of electronic commerce in recent years in frustration, many of his followers have fallen during the wayside, Amazon has tenaciously survived and come to the fore, creating an exciting performance: third-quarter net sales in 2002 amounted to 8.51 billion, an increase of 33.2% over the previous year; net sales in the first three quarters of 2002 amounted to $ 2.504 billion, an increase of 24.8% over the previous year. While the first three quarters of 2002 has not yet profitable, but the net loss amounted to $ 152 million, compared with a 73.4 percent decrease over the same period last year, sales in the fourth quarter of 2002 was $ 1.43 billion, realized a net profit of $ 300 million, is the second quarter earnings. Amazon's profitability undoubtedly great inspiration B2C e-commerce company.
Why e-commerce development in general frustrated when Amazon banner does not fall? What makes Amazon today's performance? The rapid development of the Amazon show? With this series of questions and thinking about the development process of exploring the Amazon, we were surprised to find that after the study, it was known by many e-commerce development "bottleneck" and the biggest obstacle to saving the Amazon logistics, logistics created the Amazon today's performance. Then study the survival and development of the Amazon to bring experienced business which we are now useful inspiration it?
One revelation: Amazon Logistics is a means of promotion
In the difficult days of e-commerce, Amazon launched an innovative, bold ?? promotion strategy to provide customers with free delivery service, and continue to lower the threshold for free delivery service. So far, Amazon has three times to take such promotions. The first two free shipping threshold were $ 99 and $ 49, in August 2002 the Amazon free shipping threshold in turn reduced by half, began shopping the total price of more than 25 U.S. dollars in customer delivery service free of charge, in order to to promote the growth of sales operations. Free shipping greatly inspired the people of consumer enthusiasm, while e-commerce so that those doubts, worry that online shopping is expensive netizens quickly join the ranks of Amazon consumers (for a long time, consumers will enjoy quality service and believe face more high cost, apparently Amazon has changed this point), so that Amazon's customer base expanded to 40 million people. The resulting huge economic benefits: the third quarter of 2002 books, music and video products sales compared with the same period last year increased by 17%. Logistics and sales promotion and influence on, "Logistics is competitive tool" to get the best interpretation in the Amazon business practice.
For many years, online shopping is expensive reality is that consumers choose to abandon the main factors of e-commerce and adhere to a physical store shopping, e-commerce companies also contributed to the loss of customers, an important reason for business failure. In the e-commerce business in "high-rolling cold day urgent" critical moment, Amazon inventive, bold and logistics as a promotional tool, puerile, low-cost competition, the cost of logistics to dominate the market, to attract customers, expand market share. Obviously this strategy is correct, because captures the essence of the problem. According to a recent consumer market research company survey, online shoppers that during the holiday shipping fee discount attraction far more than any other means of promotion. While this strategy has also proved to be a success, since 2001, the price of the Amazon online products generally reduced by about 10%, making it the customer base reached 40 million people, which reached about 30 million people through the online consumer . To this end, the Amazon founder Bezos to foreign confidently declared: "Perhaps consumers will go to a physical store shopping, but certainly not because of price reasons." Of course, this business strategy is risky. Because if you can not absorb the cost of the resulting transfer heavy financial burden will fall short. So Amazon is how to solve these problems?
Inspiration two: cut costs is to ensure the success of Amazon's promotion
As mentioned previously secret lies in the Amazon earnings to provide customers with the purchase of large discounts and free shipping. However, this marketing strategy is two-edged sword: a huge increase in sales at the same cost. How to absorb the cost of which brought it? Amazon's approach is to spare no effort in financial management to cut costs: reduce spending, cut staff, and convenient to use advanced order processing system to reduce error rates, integration of shipping and inventory costs ...... savings by reducing logistics costs, equivalent to less promotional costs to obtain greater sales revenue, then the feedback on the consumer, in order to attract more customers, to form an effective virtuous circle. Of course this is Amazon's ability to control costs and logistics systems have made high demands. In addition, Amazon throttle while also actively looking for new profit growth point, for example, and cooperation for other online merchants sell new merchandise and many businesses, the sale of these businesses brand products to Amazon customers for commissions. So that Amazon customers can purchase a one-stop brand to many businesses, merchandise and original books, music products, and other products, both to provide more goods to customers, but also for its diverse selection and attract many consumer product information those who come to shop, while their own without additional inventory risk, has multiple purposes. These effective measures to cut expenditure Amazon an important guarantee for the success of low-cost promotions.
Revelation 3: improve the logistics system is the lifeblood of survival and development of e-commerce
E-commerce is the trade of goods and services of modern information technology and computer network basis, with trading virtualization, transparent, low cost and high efficiency. In e-commerce, information flow, business flow, capital flow activities can be completed online through the computer, but only to go through a real operational logistics processes are not like the information flow, capital flow that is virtualized. Therefore, as an integral part of the logistics of e-commerce has become a key factor in the decision of e-commerce benefits. In e-commerce, if the logistics lag, low efficiency, poor quality, the e-commerce economy, convenient and quick advantage no longer exist. So improve the logistics system is to determine the survival and development of e-commerce lifeline. Analyze the reasons for the failure of many e-commerce business, in large part due to the failure of the logistics on. Amazon's success is also due to its success in the logistics. While Amazon is an e-commerce company, but its logistics system is perfect, is not inferior to entities. Because a sound, optimized logistics system as a guarantee, it can be logistics as a means of promotion, and the ability to strictly control the logistics costs and operate efficiently organize the logistics process. In these respects Amazon also has many unique features:
(A) to outsource the selection and distribution patterns.
Amazon in e-commerce will be its domestic distribution business entrusted to USPS and UPS, the international logistics entrusted to international shipping companies and other professional logistics company, will concentrate on developing its own core and core business. This can reduce investment, reduce business risk, but also make full use of the advantages of professional logistics companies, logistics cost savings.
(2) the inventory at the lowest level, the implementation of zero inventory operation.
Amazon by establishing a good working relationship with suppliers to achieve effective control of inventory. Amazon's inventory books rarely, maintain inventory of only 200 kinds of popular bestseller. Under normal circumstances, the Amazon is a customer books under the orders only after the purchase from the publisher. Book buyers to pay by credit card to Amazon's book section, but in the books Amazon sold 46 days after the payment to the publisher, which makes its cash flow much more smoothly than traditional bookstores. Because maintaining a low inventory, Amazon's inventory turnover is fast and getting faster since 2001. 2002 third quarter average inventory turnover number reached 19.4 times, while the world's largest retailer Wal-Mart's inventory turnaround times, but also about seven times.
(3) reduce the return ratio.
Although many types of goods Amazon operations, but because of the variety of goods to select the appropriate, reasonable price, product quality and distribution services to meet customer needs, so keep a very low return rate. Retired general traditional bookstore book rate was 25%, up to 40 percent higher, while the rate of return the books Amazon only 0.25%, far below traditional retail bookstores. Very low return rate not only reduces the return costs, but also maintained a high level of customer service and made good business reputation.
(4) for the post office to send goods to facilitate and reduce shipping costs.
In the delivery of the Amazon to take what is called the "post injection" to reduce shipping costs. The so-called "post injection" is to use their own trucks or by an independent carrier the entire truck to the local post office to order merchandise from Amazon warehouse warehouse, then shipping from the post office to the customer. This will be exempted from the post office for commodities handlers and steps to provide favorable conditions for the post office to send goods, but also saves money for themselves. It is a collaboration with Amazon delivery company estimates that by funding such "post injection" way to save the equivalent of 5% to 17% the price of an ordinary first class mail, very impressive.
(5) establish different according to the different categories of goods distribution center, distribution center operations to improve efficiency.
Amazon's distribution centers set up by commodity groups, different commodities from different distribution centers for distribution. This will help improve the degree of specialization and distribution center operations, making the organization work simplification, standardization, both to improve the efficiency of distribution center operations, but also reduce the cost of managing and operating distribution centers.
(6) adopt a "combination packaging" technology, expanding transport bulk.
When the customer to confirm the order on Amazon's website, you can immediately see the Amazon sales system according to the customer order is in stock merchandise issued, and the selection of shipping methods, estimated shipping date and delivery date and other information. As mentioned earlier, Amazon distribution center established according to different categories of goods, so the customer order is issued from different commodities in different locations in the United States different distribution centers. Because of Amazon's distribution centers to maintain only a small amount of stock, so after receiving customer orders, Amazon needs to check inventory and distribution centers, distribution centers, if not in stock, it is necessary orders to suppliers. It will cause some of the same piece of merchandise orders can be shipped immediately, while others need to wait. In order to save the customer waiting time, Amazon recommendations goods and merchandise in stock when ordering customers do not need to wait for orders placed on the same sheet. So that when the ship, the carrier can be from different customers, the same class, and distribution centers are also equipped with spot goods shipped in the same truck, thus shortening the waiting time after the customer orders, but also to expand the transport volume, improve transport efficiency and reduce transportation costs.
Perfect delivery terms, flexible delivery methods and precise reasonable fees reflect the Amazon distribution management of scientific and standardized.
Amazon's shipping terms very well, on its website, the customer can get the following information:
Special requirements for the auction of goods shipped, the estimated delivery time, free super saving shipping, in-store picking, require special handling and transportation of goods, recycling packaging materials, shipped, shipping rates, shipping restrictions, order tracking, etc. .
Amazon provide customers with a wide choice of shipping method and delivery deadlines. On the shipping method has to land and sea as the basic mode of transport "standard shipping", but also by air. The delivery period, according to the destination is domestic or different set of goods and abroad is in stock and the use of standard delivery, the 2nd and the 1st delivery delivery and so on. Depending on the shipping method and delivery period and category of goods, to take a different charge standards, batch fee charged at a fixed rate, there are several pieces of fees charged by number of pieces, there are fees charged by weight.
All this suggests that standardized scientific and legal distribution management and operation of the organization on the Amazon, and fine, to provide customers with a convenient, thoughtful and flexible delivery services to meet the diverse needs of consumers. Amazon with its low price and convenient services in the minds of customers to establish a good image, increase the trust of customers, and enhance its confidence in the future development.
In short, Amazon gives us a lot of inspiration, the most important thing is the logistics plays a vital role in e-commerce development. Some of the rapid development of the Amazon known as the "Amazon myth", if China's e-commerce businesses in the logistics business development can as a business development strategy, rational planning enterprise logistics system, develop the right logistics goals, effectively Logistics the organization and operation, then the Chinese e-commerce enterprises, Amazon myth is no longer distant.
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