Amazon.

com

CHAPTER-19
BY
N.RAJA
Case overview
In 1994 Jeff Bezos, a young senior vice president at a
wall investment firm, decided became a part of the
internet revolution.
Because 1.3 million book were in print at the time
He came with the list of possible items to sell online
including books, music, PC hardware &software and
magazine
Bezos, who was recently named Time magazine’s
“PERSON OF THE YEAR” and Advertising Age’s
1999 “MARKETER OF THE YEAR”
Amazon.con came with new idea that regarding the
book customer can give comment on the book and
share their view point with customer to customer and
ask enquires to author
They give roughly 30% of the titles are discounted by
10 to 30% customer
They grew at 20% per year and reached $4 billion in
2003 and reached $8 billion in 2007.
QUESTION -1
Why have books and CDs sold successfully
online while many other products haven’t
sold well?
Answer - 1
Book sales is high because there is discount in the
book
Customer can read some page and in the book and
purchase
In books customer can see the comment
Other product customers need to see the product and
then select the product
Knowledge of the other product is less, so they would
like to see the product and buy
QUESTION -2
 Do you think consumers who buy from
Amazon.com also shop at other websites for
books and CDs and buy from the site that
offers the lowest price?
Answer -2
It depends upon on the consumer
If the customer is Brand loyal to Amazon.com
 Good experience in privies buying
 Trust on brand

If the customer is not Brand loyal to Amazon.com

 If they have any bad experience in privies purchase
 Any word of mouth on other brand
 Low price available
QUESTION -3
What aspect of customer service have
contribution to Amazon.com’s success?
Answer - 3
Amazon success

They are unique in their service

Time delivery
Discount given 10% to 30%
They can see the review and the comment of the book
QUESTION -4
 Why do you think Amazon.com isn’t
profitability even though it generates high
sales dollars?
Answer - 4
Sales is increasing but the net profit margin is reducing
Operating expenses is increasing and reducing the net
profit
So Amazon should control on its expenses and it main
reason is due to diversification in other products
QUESTION -5
What are the differences in the purchasing
experience between buying a Amazon.com
and at a Barnes & Noble brick-and –mortar
store?
Answer - 5
Amazon.com Barnes & Noble Brick-and-mortar
store

Cheap price Not cheap price

Any where can sit and buy We need to go and buy from only stores

Home delivery No home delivery

All the book will be available Limited book will be available

Here customer can see the comment Here they have to get the book only
and buy the books
QUESTION -6
What problems may arise as Amazon.com
expands its offering to products other than
books?
Answer - 6
Risk taking
More problem will create in delivery
Trust level may reduce if any problem in the other
product
Competition (e-bay)
Thank you