Customer Happiness in the Digital Economy Amazon . com. Com Article

Consumer Fulfillment in the Digital Economy Amazon. Com

Consumer Fulfillment in the Digital Economic climate

Amazon. com

E-tail Buyer Fulfillment Networks Pioneer

" The strategies of circulation


are the iceberg under the

waterline of online bookselling. ”1

B-web type

—Jeff Bezos,

founder and CEO, Amazon. com

• Assimilation (e-tail) /Agora

(auctions, Zshops) hybrid style


" A decade from today, no one

can remember if

Consumers and business purchasers

Context services



Content services


Amazon. com and small on the net

merchants (Amazon. com

associates, Zshops, auctions)

Suppliers and b-web associates

(publishers; manufacturers [OEM];

distributors e. g. Ingram Micro,

Baker & The singer Books, and others)


Amazon. com spent an additional

$100, 500 upgrading shipping and delivery

from the West Coast for the East

Shoreline. All that is going to matter is

whether electric commerce


gave people a good or bad

encounter. ”2

—David Risher,

elderly vice president to get

merchandising, Amazon online marketplace. com

Trade services


Infrastructure suppliers





" This [the Amazon. com

distribution warehouses and

CFN] is definitely the fastest development of

syndication capacity in

peacetime record. ”3

—Jeff Bezos,

founder and CEO, Amazon. com






Amazon. com and online

retailers (Amazon. com

associates, Zshops, auctions)

Amazon online marketplace. com and merchants

playing auctions and


3rd party shippers (UPS & USPS)

Amazon. com

Drop shippers such as Ingram

Technology suppliers such as

Oracle, Net Awareness, and i2


3rd party shippers (UPS, USPS)

The biggest online e-tailer of books,

music, video clips, toys, and gifts

Just lately expanded support offering

to add auctions (March 1999)

and Zshops (September 1999)—an

crowd of vendors on its

Web site

Aspires to become a one-stop shop

for merchandise on the Web

CFN value proposition


" Globe's largest selection” of

products at competitive prices,

a validated merchandise assortment,

and consistent customer support

from " home page by




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1 . 1

Consumer Fulfillment in the Digital Economic climate

Amazon. com

few obstacles to entry—but one of those barriers is

client fulfillment. In 1996–97, Amazon . com. com was

largely exclusively in the e-tailing business. Now the Web is definitely

teeming with e-tailers like buy. com (which aggressively

undercuts everybody else, including Amazon. com),

CDNow, and barnesandnoble. com. There are also Web

portal-run malls, a lot of which are replicating and

providing features (like the well known " one-click

shopping”) that have thus far differentiated

Amazon. com. Yahoo's on the web mall provides 7, 000 stores

with over several million products and walmart. com's designed

debut in 2000 positions a significant threat. Amazon. com's

first emocionar advantage, e-brand equity, and initial expense

advantages (stemming from insufficient investments in

excellent real estate for storefronts) will be gradually eroding.

Its margins are slipping, while working expenses from

mergers and acquisitions are increasing. Since the end of

1999, Amazon. com likely to post around $600

mil in deficits for 12 months, at a time the moment growth in

book revenue is falling (from regarding 800% in 1997 into a little

over 100% in 1999). On the plus area, customer

preservation rates surpassed 72% in the third one fourth of

99. 8 Although average earnings per client in 1998 was

$98. 4, while average selling, general and management

(SG& A) and circulation costs every customer (excluding

cost of products sold) had been about $71. 30, resulting in an

normal net profits loss of about 21%. on the lookout for

Amazon. com

Founder Rob...