Amazon.com Inc. is an American multinational technology company based in Seattle, focusing on – Studocu

Bachelor of Business Administration

May / 2021

BBED 4103

E-COMMERCE

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TABLE OF CONTENT

1 INTRODUCTION 2

2 DIFFERENCES IN AMAZON TRANSCATION B2B AND B2C

2 ORDER APPROVALS AND ORGANIZATIONAL STRUCTURES

2 SALES RESPRESENTATIVES

2 CUSTOMER RELATIONS

2 TYPE OF SALE AND LOGISTICS

2 TERMS AND PRICING

3-

3

3-

4

5

5-

3 AMAZON WEBSITES

3 BENEFITS OF OWN WEBSITES

6

6-

4 ANALYSIS NATUIRE OF E-COMMERCE OF AMAZON 7-

5 CONCLUSION 8-

6 REFERENCES 10

2 between B2B and B2C transactions within Amazon
When choosing an e-commerce solution for your online store, you must determine the
main differences between B2B and B2C e-commerce to ensure that the platform you
choose is the best for your specific business. The choice of e-commerce solutions on the
market is very wide, and choosing a suitable e-commerce solution from the spectrum can
be very challenging. If you are a B2B company, the most important thing to understand is
that the industry has many specific needs and most of the standard e-commerce solutions
are difficult to satisfy. This is the main difference between B2B and B2C e-commerce,
and these differences will directly affect the choice of online store solutions.

2 Order approval and organizational structure:
B2C works directly with the end-buyer, without order approval or related special
procedures. On the other hand, B2B usually needs to adapt to the entire negotiation and
approval process chain, and the e-commerce platform they use must be able to often
support up to 10 different roles in the approval process and follow-up orders. Some or all
of these roles can be accessed. B2C-centric software usually does not face these
challenges, and may not be able to solve such situations quickly. The ownership of the
sales process within the organization is also different between B2B and B2C. B2C sales
are usually managed by the marketing department, which involves IT and operations
departments. In B2B, operations and IT are the main owners of the processes, which
makes the main difference for us in building relationships with buyers.

2 Sales Representative
B2B department is focused on establishing long-term partnerships. This is another
specific factor that does not currently exist in B2C e-commerce which focuses on the use
of real salespeople who work directly with customers. It’s safe to say that today, no matter
what business area they are in, most people prefer to order directly online rather than
talking to a salesperson. Naturally, B2C e-commerce has quickly adapted to this new
reality, and now direct selling professionals have disappeared. Even more naturally, the
rest of the sales staff see e-commerce as a huge threat. However, in the B2B industry,
given its detailed information, sales representatives are still vital to establishing and

maintaining partnerships. With this setup, online shopping is actually a boon, not a threat,
and they are very helpful in eliminating regular orders and focusing your sales team on
the most important tasks.
For complex transactions or large orders, B2B buyers still want to talk to a salesperson.
Therefore, now the field sales staff can truly devote their energy to their main goal that is
building relationships, rather than regular order takers; and, if they can still get paid for
their customer base, then they will no longer feel threatened by the new technology, and
the new technology still has obvious positive significance for the seller and the company.
In order to make routine orders for customers quickly and conveniently without affecting
sales representatives, the e-commerce solution needs to take into account the following
two aspects: a convenient online ordering system and a method for tracking and linking
specific sales personnel’s orders inside the company. Also, when a salesperson is
involved, they must be able to adapt to more complex interactions.

2 Customer Relationship

When talking about the difference between B2B and B2C e-commerce, the key question
is “Why are we doing e-commerce in the first place?” What is the main objective? The
answer will vary by retail sector. B2C tends to focus on acquisitions. The main goal here
is to attract more customers and sell as many products as possible. The number of
products that can be marketed to as many potential buyers as possible. In B2B, priorities
have changed significantly. Here, the number of sales is in large number of products to
the same buyer, so the first task is to retain that buyer. Establishing and maintaining long-
term partnerships is essential for providers that focus on B2B. Another important point is
that the buyer in B2B is usually not the final consumer, but the purchasing agent, who is
specially trained to make purchasing decisions. Based on this difference, B2B e-
commerce requires simple and easy-to-use tools, including powerful multi-store support;
flexible catalogue classification; scope-based security related to catalogues and many
other B2B-specific features, and in contrast, the B2C department usually prioritizes eye-
catching websites in order to attract as many potential customers as possible.

people on both sides of these two e-commerce models. Trade-based relations between
people have been developed for hundreds of years. Now, its appearance has changed, but
its essence remains the same.

3 of the benefits of Amazon having its own website
One of the latest additions to the Amazon’s repertoire is a subsidiary company called
Amazon Services. Amazon sells its sales platform through Amazon Services and provides
a complete Amazon e-commerce software package to companies that want to build or
update their e-commerce business. Amazon set up Amazon’s software and technology to
establish a comprehensive website and technical backbone for other e-commerce
companies. For example, in addition to having a store on Amazon, Target also uses
Amazon Services to build and manage its own e-commerce website Target. The
associates can also take advantage of Amazon Web services, which allows people to use
Amazon utilities for their own purposes. The Amazon Web Services API (application
programming interface) allows developers to access Amazon’s technical infrastructure to
create their own applications for their own websites. All product sales generated by these
sites must go through Amazon, and employees receive a small commission for each
sale. On the following discussion will view insight on how all these programs and
channels come together to create a sales and marketing powerhouse.

3 of own websites
The beneficiaries of own websites are broad as the prospective brands can evaluate their
potential on Amazon before entering the job market and gain the knowledge necessary to
understand and predict their brand’s trajectory on Amazon. This information allows
brands to decide whether their partnership with Amazon is worthy of Amazon’s imminent
influence before experiencing the consequences first-hand. In addition, because of the
established partnership with Amazon, today’s brands can better predict their future and
develop strategies to determine their direction of development. Using this tool, brands
can take the initiative to regain some of the control they gave up when joining the site.
Lastly, this tool can promote the longevity of Amazon and improve awareness across the
company. If brands can protect themselves from brand dilution, Amazon can retain the

security of brand leverage to further their success. In addition, this new focus on
transparency has increased consumer valuation and the Amazon brand. Once the
accountability system is in place, both consumers and brands will have the support of the
company, and will remain loyal to the company and contribute to the long-term success
of the company. Therefore, Amazon has a responsibility to actively attempt to have a
positive impact on its business partners and consumers; this tool is a step in the right
direction. Online retail is Amazon’s playing field, and it clearly sets the rules. The breadth
of the company is equal to that of no previous company, so the overall impact of this
huge and competitive force cannot be determined.

4 Nature of E-commerce communication within Amazon
At the first glance, Amazon’s business structure can easily be called “e-commerce.” In
fact, this is how company representatives and others generally rank Amazon and its
namesake website. But over the years, the company has expanded to services beyond the
strict scope of e-commerce. As Amazon develops and grows in the ever-changing
global market, some even say that Amazon is not a trading company at all. Currently,
there are more than two million third-party merchants selling on the Amazon platform in
more than 100 countries, and this number has doubled in the past ten years. Of all the
products sold on Amazon last year, more than 40% were sold by third-party merchants, a
total of about two billion products, twice the number of products sold on the platform in
2013. Indeed, the selling on Amazon’s third-party platform involves costs as Amazon
collects the percentage of each item sold. Although most Amazon third-party merchants
pay between 8 percent and 15 percent, the fee ranges in-between 6 percent and 50
percent. However, this fee is not the only fee for becoming a third-party Amazon
merchant. Due to the nature of the company’s unique business model, Amazon’s third-
party merchants often find that Amazon is not only their partner, but also their biggest
competitor. In short, commerce business is buying and selling activities, especially large-
scale buying and selling activities. When a company’s sales platform allows the
customers to buy its products electronically while online, thus it can be said with
certainty that it is an electronic commerce company or an e-commerce company. As of
publication date, Amazon not only fits that description, but is also the epitome of it as the

China and India. Its online marketplace business model has achieved great success in
other regions of Asia, Europe, North America and South America. It fits into its “vision
and mission” statement, that it is the most customer-centric company on the planet,
establishing a place where people can find and discover any product they want to buy
online. There are many business opportunities in developing countries. For example, the
countries of Eastern and Central Europe have joined or will join the European Union or
the BRIC countries: Brazil, Russia, India and China. They are considered the fastest
growing markets, and Amazon should enter or invest heavily in these countries.
Amazon’s strong logistics alliance ensures that the company can deliver its products
quickly and safely to new customers. The company also have been testing delivery via
drones. As matter in facts, it has shown that Amazon is the leading pioneer in the global
economy. As a global participant in e-commerce, it has changed the global business
process, improved logistics efficiency, and promoted the acquisition, sales and promotion
of goods. Similarly, e-commerce has helped millions of consumers through low prices,
high competition, ordering and fast shipping. The companies whether large or small in
multiple industries rely on e-commerce applications to survive and compete in local,
national and global economies. Amazon has been adapting to possible changes in this
dynamic environment, from Web services, distribution and warehousing centres to
logistics barriers, leading videos and more. The company is now one of the largest and
most powerful technologies in the world.

6 Reference

Annual report 2017. Seattle, Washington: Amazon. April 4, 2018. Retrieved May 22,
2021.

“Form 10-K”. Amazon. December 31, 2018.

“California Secretary of State Business Search”. Businesssearch.sos.ca.

“Amazon bought Whole Foods a year ago. Here’s what has changed”. Yahoo! Finance.

“Amazon, Inc. – Form-10K”. NASDAQ. December 31, 2018. Retrieved March 23,
2021.

Lotz, Amanda. “‘Big Tech’ isn’t one big monopoly – its 5 companies all in different
businesses”. The Conversation. Retrieved May 24, 2021.

“The Big Four of Technology”. October 31, 2017. Retrieved May 24, 2021.

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