An E-Commerce based company is a type of company where it actually buys and sells its products or even services over electronic systems and other computer networks. Many of the E-Commerce companies were established without a solid outlet where every transaction is done online. However, despite the lacking of physical outlet, these E-Commerce based companies can still become very successful and survive well in the market nowadays.
A very good example of a successful company using E-Commerce is the Amazon.com. Amazon.com was founded in 1994 by Jeff Bezos. When the company was first established, it sold books online, but then diversified to selling CDs, computer software and games, even furniture and toys, and many more. This online based company remained competitive in the market against those click-and-mortar bookstores and other competitors in the industry.
Amazon.com really earned its profit in the year of 2002 with U.S $ 5 million. The company continued to become profitable, where it gained a net income of U.S $35.3 million in 2003, U.S.$588.50 million in 2004, U.S.$359 million in 2005, and U.S.$190 million in 2006.
There are several reasons why Amazon.com has been such successful as an E-Commerce based company. Firstly, this company owns the best marketing techniques and expertise to help promoting its products. This is crucial to make sure that every product is well and effectively managed until it reaches the customer’s hand.
Secondly, Amazon.com does not only sell books online, but also offering a huge variety of products such as electronic items, kitchen utensils and others as mentioned above. The varieties of the products sold are meant to target different segments in the market, ranging from housewives to working classes.
Moreover, the efficiency of this E-Commerce based company in handling customer requests is yet another advantage and important criteria for its steady increase in sales. Every customers demand is answered in the fastest manner to make sure satisfaction guaranteed and customers can get their items in the shortest time after they pay for it.
In short, Amazon.com has successfully retained its position in the E-Commerce based industry. Not only that it has a strong management, but also the ways it defines every customer request that has made a different between itself and its competitors.
Prepared by: WONG CHEE WAI
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