Amazon.com – From Books to Outsourcing Services
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Code : BSM0005
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Region : USA
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THE EARLY YEARS Amazon’s first online retailing site amazon.comwas started in 1995 by Jeff Bezos.The site was launched primarily for selling books over the Internet. The intention was to make use of the growing popularity of the Internet in USA. In the beginning, investors criticised Bezos’s venture and predicted that it would fail... DIVERSIFYING FOR PROFITS In September 1999, Amazon opened up its website for traders and individual sellers, who could directly sell their products ranging fromclothes to holiday shopping, to the customers through the site. Under the new business called the Zshops, the traders were charged a fee of $9.99 per month to display about 3,000 items on the site.Amazon gained between 1.25% to 5% as sales commission, on the products sold. Small sellers could list an item for two weeks for 10 cents.19Amazon’s idea behind the deal was to expand traffic on its site, by adding product lines to the site without incurring the high costs of their start-up... BREAKINGTHE STATUS-QUO By the last quarter of 2001,Amazon reported its first ever net profit of $5million or 1 cent per share. This was a big leap over previous year’s losses of $545 million or $1.53 cents per share. Its third party sales were also contributing to around 23% of the total sales in US, compared to their contribution of 4% in the previous year. The first quarter of 2002 saw a high growth in sales for Amazon... |
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