Friday, January 6, 2017

Multi-level sales strategy

Amazon employs a multi-level e-commerce strategy. Amazon started off by focusing on Business-to-Consumer relationships between itself and its customers, and Business-to-Business relationships between itself and its suppliers but it then moved to incorporate Customer-to-Business transactions as it realized the value of customer reviews as part of the product descriptions. It now also facilitates customer to customer with the provision of the Amazon marketplace which act as an intermediary to facilitate consumer to consumer transactions. The company lets almost anyone sell almost anything using its platform. In addition to an affiliate program that lets anybody post Amazon links and earn a commission on click-through sales, there is now a program which lets those affiliates build entire websites based on Amazon’s platform.[94]
Some other large e-commerce sellers use Amazon to sell their products in addition to selling them through their own websites. The sales are processed through Amazon.com and end up at individual sellers for processing and order fulfillment and Amazon leases space for these retailers. Small sellers of used and new goods go to Amazon Marketplace to offer goods at a fixed price.[95] Amazon also employs the use of drop shippers or meta sellers. These are members or entities that advertise goods on Amazon who order these goods direct from other competing websites but usually from other Amazon members. These meta sellers may have millions of products listed, have large transaction numbers and are grouped alongside other less prolific members giving them credibility as just someone who has been in business for a long time. Markup is anywhere from 50% to 100% and sometimes more, these sellers maintain that items are in stock when the opposite is true. As Amazon increases their dominance in the marketplace these drop shippers have become more and more commonplace in recent years.[citation needed]
On 2 February 2016, General Growth Properties’ CEO, Sandeep Mathrani, during a year-end conference call with investors, analysts and reporters mentioned that Amazon plans to roll out 300 to 400 bookstores around the country. This was an unconfirmed comment, however, due to the source, a media frenzy ensued.[96] In November 2015, Amazon opened its first physical bookstore location. It is aptly named, Amazon Books and is located in University Village in Seattle. The store is 5,500 square feet and prices for all products match those on its website.[96]

No comments:

Post a Comment