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Amazon Business Model Analysis

716 Words3 Pages

Business model:

Amazon is a company which is running subscription business that is why its key partners vary in this case Amazon key partners are logistic partners, self published and affiliates.

In business which deals in subscription they target mass market for creating long relationship in the case of Amazon its create value for global consumer market, companies that need fulfillment and developers or companies. In which almost 1.3 million are active consumers, developer consumers use Amazon web service

Amazon reach to its segment through websites and apps like Amazon .com, affiliates sites, application interface, built in data link .

A key activity includes maintenance and software development, customer service, merchandising …show more content…

This includes sales margin, fees for fulfillment and value computing fees.

This includes relationship each segment expects this includes customized profits and suggestions, self service application program interface and e-readers.
REVENUE MODELS
Purchasers can purchase goods or merchandise directly through third party by using Amazon .com for this it charges a commission rate .transaction fees and closing fees other than that it also generates revenue through affiliate revenue model in which website owners picks the product from Amazon and earn referral fees on the merchandize the fees is about 4 percent to 10 percent of the product price.
The revenue model with respect to America is as follows: MARKET SEGMENTATION
Amazon is the company which uses the demographic, psychographics information for predicting the future purchase intention of customers .it target its individual personally in order to built long term relationship with that of customers .other than that it target middle and upper class people who do not have time and prefer convenient sources of shopping
Psychographics information includes:
• Interest
• Lifestyle
• Socio economic …show more content…

Other than that company is offering a wide range of products at competitive price it is completely online base which reduces operation cost, allow their customers to compare the price in the precious time even they provide smart tools, free shipping opportunities to its customers. After wards it is handling its operations in this manner that it handles its customer relationship via websites different companies can sell its product through using Amazon and even it is offering different kinds of services including web design, solutions related to e-commerce

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