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Key Success Factors Of Amazon's Success

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Key success factors: 2008-09
The key success factors of the success of Amazon.com can be defined as:
Price: Amazon differentiates itself mainly on the basis of price and by making sure that it offers the same quality products as any other company with a noticeably lower price.
Broad selection: Leveraging on the power of the internet, Amazon.com is capable in providing its customers a wide selection of books and product. Unlike the traditional retailers that need to stock up inventory in order to display out to the public, Amazon.com presents its products through an electronic catalogue without having to stock all that is displayed. Although roughly 64% of Amazon 's worldwide revenue still comes from media categories (books, music, video), Amazon 's product footprint …show more content…

Amazon charges a commission based on a formula involving the sale price of the item, a shipping credit, a referral fee of 6-25% of the sale price, a variable closing fee and a $0.99 fixed closing fee. Although gross margins on such transactions are generally lower than that if Amazon sold the item directly, this strategy creates a one-stop shopping destination with a consistent experience for the customer. It has also helped Amazon considerably increase its selection of available products.
Strategic Alliances: Another advantage Amazon.com has over its competitors is the strategic alliance and affiliate partners. The strategic alliances Amazon.com have allowed it to diversify from its original business model of selling books to accommodate a diverse range of product. Through the help of its affiliate partners, customers are referred to Amazon.com allowing Amazon.com to reach a bigger market. All this has lead to an increase in business opportunities as it allows Amazon to offer more and at the same reach out to a larger

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