E Commerce, Case For Amazon And Dell

1291 words - 5 pages

E-Commerce or Electronic commerce, has developed very rapidly in the last few years. Most people think e-commerce is just about buying and selling things over the Internet (Wareham, 2000). E-commerce is a broad term describing the electronic exchange of business data between two or more organizations' computers. Some examples might be the on-line banking and online purchasing.Increasing competition worldwide, increasing demands made by customers, and the rapid pace of change in technology are forcing companies to review the way they do business, the kinds of products and services they offer, and the speed with which they release products to market. The effect of the Internet is so widespread in today's business communities; there are few companies that do not use e-commerce. One online article stated that more than 100,000 companies have Internet addresses, and 20,000 companies have home pages on the Internet as of February 1999 (DataQuest, 1999).Today, most companies have worked to expand and improve their process online in order to meet the demand made by the Internet users. organizations are now beginning to rely on the e-commerce solutions that help reach and keep customers, open new markets, and condense the business processes. E-Commerce has various advantages for the provider.One advantage is it allows companies to build a name for their company, quickly and inexpensively. Another advantage is it offers, suggestive selling. This is when the user can recommend similar or other products that they might/will buy. This is often done through surveys. The last advantage is the speed in which the transaction is completed. Many times Web users give up in trying to buy something due to the frustration that was caused in trying to get to that particular item.There are also many advantages to E-Commerce for the user. The information can be updated in no time and while the user is using it. The pages can be updated without having to redesign the page. Site visitors can maneuver and control the data, as it is displayed, to suit their preferences and need-to-know. The interactive capabilities such as purchasing on-line can be utilized, and the site visitor can filter information. Overall, E-Commerce delivers a solution to businesses that will help their clients better interact with their customers, suppliers and partners.With a loan from the bank, Jeff founded Amazon.com in his garage and helped start e-commerce. From July 1995 to July 2000, Jeff Bezos built Amazon.com into a $1.6 billion company that sold everything from books to power tools. The company sold over 18 million products to over 22 million customers; it was the 48th most recognized brand worldwide.What is the secret of Amazon's success? Several related factors are probably the most important:One of the most important one is due to its operation cost. Amazon developed its business based on it online book sell. Everyone knows that books cost relative lower, and it is can be easily and cheap...

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