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E-commerce Implementation In Amazon

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Question:

Discuss about the E-commerce Implementation in Amazon.
 
 

Answer:

Introduction

Purpose

The report depicts the importance of implementing Electronic Commerce solution in business organizations. After introducing the concept of E-commerce, the revenue of the organizations will automatically increase due to the presence of certain promising features. The purpose of the report is to represent a clear view on E-commerce marketing strategies and its positive impact on organizations. Apart from this, it is also found that, social media also plays important role in organizational development. In order to prepare this report, three organizations such as Amazon, ebay and Lazada are selected. The social media is one of the most rapidly growing phenomenon and they have the deepest in the business organizations. This report demonstrates the business review given by the consumers of the organizations and their future trends as well. On the other hand it is also found that certain issues are also associated to E-commerce implementation. In order to mitigate these issues, recommendations are also served in this report.

Background of the chosen organizations

Amazon: Amazon.com is an online shopping cart based on 500 ecommerce companies throughout the world. WA.Amazon is the first organizations that become famous for selling products over internet channel (Flanagin et al., 2014).  In the year of 1994, the organization was founded by Jeff Bezos. The business initially started as an online bookstore and gradually converted to a multi store by adding different items such as clothing, kitchen appliances, home appliances, accessories, electronic goods and cosmetics. The online shopping cart was launched in 1995 and in 1999, in Time Magazine an article was launched on the success story of Amazon as an online shopping cart.

Ebay: In the year of 1995, ebay was founded by Pierre Omidyar and Jeff Skoll. The Customer to Customer (C2C) Ecommerce business model is utilized by ebay for their shopping cart. Ebay was the first organization that was using the concept of C2C business. In this shopping cart, the seller and buyers both are referred to as consumers.  The first thing sold in this shopping cart is the broken laser pointer of Omidyar in $14. Even, this portal is concern about the consumer security. The confidential information of the consumer is kept secured and none of the external users could hack those without the permission of the customers.  

Lazada: Lazada is one of the leading online shopping and selling destination of Malaysia. This online shopping portal mainly operates in the southeastern Asia. The portal is secured and user friendly thus, the consumers feel free to get connected with this shopping portal. The products served by the company include different categories such as health and beauty products, home and living appliances, electronic gadgets and different kitchen appliances also. In the year of 2011 this privately owned organization was founded by Rocket internet.

 

Business review

Number of followers and like for the organizations

Number of followers and likes for Amazon

Name of the social media

Likes till January 2017

Followers

Facebook

23 million

-

Twitter

-

108 million followers

Instagram

-

-

Pinterest

-

-

Number of followers and likes for ebay

Name of the social media

Likes till January 2017

Facebook

83%

Twitter

1.7 %

Pinterest

1.95%

Others

6.1

Number of followers and likes for Lazada

Name of the social media

Likes till January 2017

Followers

Facebook

16,290,280

-

Twitter

-

1,358

Instagram

-

4,979

Pinterest

-

19

Posts that are engaging and promote positive attitudes to the organizations

The intension of the consumers is to save money always and the promotional post served by Amazon helps the consumers to take effective decision regarding the shopping and a particular product. The consumers always look for the entire range of promotional offerings. In order to make the promotional program effective, Amazon advertises their products with the help of sufficient value and favorable influences (Ritala, Golnam & Wegmann, 2014 ). The policy and the restrictions are defined by the terms and condition framed by the organization itself. The eligibility criteria include eligibility, exclusion, return and cancellation, purchase requirement and other rules and the shipping eligibility. The current promotional post of Amazon is advertised in television and different social networking media such as facebook and twitter.   

 


The promoting listening capability of ebay helps to boost up the visibility. The promoted listening is available in all the active stores of ebay situated in Germany, Australia, UK and US. This is the most recent and promising promoting aspect used by ebay. This is a risk free and one of the smartest way to get the item as per the user requirement (Varia & Mathew, 2014). This approach is exposed by almost 30 percent and it helps to put the seller merchandise in front of more active shoppers. Te promotional listening could pay after the selling of the item and it could also success the monitor. It provides various discount codes for the consumers.

 From the promotional campaign and condition it has been found that Lazada intensify the promotion that is present in the major cities of Indonesia. The organization is under the fourth year of its operation and the regional giant of E-commerce used by Lazada is focusing to expand its business and grab more number of consumers throughout southeastern Asia (Jennings, 2014). The goals of the privately owned organization are to built and expand its business and it has become the southeastern version of Amazon.com. In order to grab huge number of consumers currently the organization is using facebook, twitter, Pinterest and many other social media (Aversa et al., 2015). The E-commerce market forecast implies that, due to the promotional activities the organizations has reached $25 billion from $8 billion.  

Number of user generated reviews and ratings

The customer review is generated from the consumers itself and it is based on their feeling after using or buying that particular product. Amazon uses the reviews in terms of star rating and the rating is in between 1 to 5. If the consumers are very much satisfied with the product then he or she provides 5 out of 5 (Kantor & Streitfeld, 2015). On the other hand, if the consumers are not satisfied with any particular product then he or she will provide lesser review rate. Over the changing year the growth of the review rate is increasing very fast. After analyzing the collected data set it has been found that, Amazon has got over 1.2 million of review ratings for their products.

The review rate for the electronic goods served by Amazon is the best on the other hand for garments and other product categories the review rate is also very good. Moreover the rate of the distributive review on the electronic product is increasing at a rapid rate. After analyzing the price of the product it has been found that for same product the price range varies at a vast rate (DaSilva & Trkman, 2014). It is determined that the relationship between the product and the average length of the review fr the product is quite surprising in case of Amazon.  

Ebay serves a C2C ecommerce business process, where the previous consumer plays the role of a buyer.  For the ebay community feedback is referred to as one of the most important things. After understanding the number of stars the organization will be able to get the number of consumer review (Laroche, Habibi & Richard, 2013). Even in the feedback profile, the feedback of the consumers in terms of star rating is the most important thing.  As in case of ebay one consumer can serve sell their products to another consumer. It means if a consumer feel satisfied with the product then he or she will give star rating based on their satisfaction level. The online cart gives opportunity to both the seller and the buyer. The seller will get star rating and depending on the number of star the color of the star will also change. Even, different promotional activities are also served by ebay and they also use advertisement for organizational promotion.    

 


Lazada serves their products mainly in southeastern Asia and to maintain the reputation the promotional activities of Lazada are taking place in facebook, twitter, Google and in many other social media (Brovman et al., 2016). It also has 5 stars rating and based on the quality of the product, the consumers give their view in terms of tar rating. If the rating is above 2.8 then it will be termed as acceptable and of the rating s less than that then it will not be accepted by the company (Wamba & Carter, 2016).  Though, from the consumer review status it has been found that, with the return policy used by the organization the consumers are not all satisfied. Even the behaviors of the staffs are also quite unprofessional and due to that reason the time frame of delivery is not at all as per the desire of the consumers. Though, for refund of the returned items the customer rating is very much satisfactory.

The online social networks that encourages the sharing opinions

Online social networks encourage the sharing opinion of all the shopping portals including the Amazon, Lazada and ebay.  It has been found that there are many products those have not got any consumers review. Apart from the insightful comments helpful comments in the common platform will be referred to as more helpful for the online shopping cart to improve their business revenue (Maria, Kindangen & Rumokoy, 2016). Both the best and even the worst product review are served by the social networks. Based on the product quality, price, quantity classification, the user generated reviews are provided. The official Web Pages of all the three organizations are connected to the social networks such as facebook, twitter, Instagram etc.

The social media always influences the behavior of the online shopping.  In order to read the review and to stay connected with the most recent fashion trends the number of digital buyers is increasing at a rapid rate. In the year of 2015, from a survey on online shopping it has been found that social media plays the most important role that influences the behavior of both the buyers and the seller (Wijayanto, 2017).  The review rating helps the buyer to make an idea about the quality of the products. If they found that for a particular product the review is not satisfactory then the demand of that product will gradually decrease. In order to get consumer for that product the company is required to concentrate on the quality maintenance. Basically the review rating helps the consumers to get idea about the products (Hidayanto et al., 2014). This approach is known as electronic marketing, where the consumers could buy products and even pay for that product through online.   

 

Discussion on the ways through which the organizations interact and respond along to the consumers

The norms and values are different for different organizations. It states that the consumer’s interaction is different for these three organizations though, the basic concept is same (Budi indrawati et al., 2016). Amazon uses 10 various ways through which they could transfer information to the consumer.  For Amazon, Lazada and ebay the interaction approach are as follows:

The proliferation of the customer review: This approach is strictly associated to the consumer rating. The review rating given by the customers are shared with others with the help of the social media (Jiang, et al., 2014). Depending on those ratings, the new consumers could make their decisions for product risk and their efficiency as well.  

A real time recommendation engine: Amazon is referred to as the king of cross selling approach. Based on the generated reviews and ratings certain recommendations are also served for the consumers. It helps to enhance the brand value and in store interaction (Evans & Erkan, 2014). In addition to this, a toll free number is also available in the official website of the online shopping organizations through which the consumers can easily interact along with the service providers.   

Streamline checkout: One of the best and user friendly service is served. An automatic population shipping address, payment processing with needful security by maintaining the brand value, is another positive approach served by these organizations.

Strategic shipping support: The most important thing that Amazon serves for its consumers is reliability (Horng, Wu & Liang, 2016). After the order entry Amazon keeps appropriate track on the process flow. 

The positive and Professional Company Responds

From the user review it has been found that except Lazada the other two organizations are very positive and professional as well from the aspect of consumer respond. Due to lack of reliability, Lazada fails to meet the requirement of the consumers from all the aspects. Amazon provides the most reliable and flexible consumer services to the consumers (Zhang & Pennacchiotti, 2013). If any customer wants to return their products then, Amazon serves this very efficiently considering the brand value and belief of the consumers as well.   

Future Trends

Analyzing the Future Direction

Nowadays, consumers are getting more attracted towards online shopping while different physical retailers are closing down and underperforming in a wide range. A digital intelligence approach is using by these organizations to develop the business strategies. Amazon is using the intelligence gleaned from the digital operation in order to understand the requirement of the consumers (Das Sarma et al., 2014). This is leading towards a strategic principle which is growing part of the business process served by Amazon. The components served by Amazon include job posting, customer intelligence, operation intelligence and performance intelligence as well. However, Lazada needs to develop their customer care service to improve their business revenue. The C2C business strategy serves by ebay is quite effective but to gain more business revenue certain broad aspect are required to be considered by the organization.  

Recommendation

In order to develop the business growth, some recommendations are provided that might help o overcome the business growth. For maintaining the business sustainability certain recommendations are provided to the organizations. These are as follows:

Adaptation of demand driven planning: Based on the demand of the consumers the business organizations must develop the business planning.

Adaptive supply chain management system: Proper supply chain managements system is required to be adapted by the organizations to improve the growth revenue.

Optimization of the product design supply: The traditional product design approach is needed to be changed by adapting different technology based advantages. It will help to achieve the business sustainability of the business organizations.

Technical development: Different technical advances are required to be adapted by the organizations to improve the production and business application as well.

Conclusion

From the overall discussion it can be concluded that all three organizations are very much successful in their business domain but still certain issues are also associated to this online shopping cart. These issues are continuously affecting the organizational fluent business progress. While analyzing different business aspects it has been found that the time required to prepare this report is lesser and due to lack of time proper information are not been collected from the resources. In order to understand the components those are needed to be maintained for business sustainability are also lagging. On the other hand due to lack of budget, proper review tools are not been used and thus proper information are not generated that are required to represent the report. In order to mitigate these challenges certain recommendations are provided.

 

References

Aversa, P., Haefliger, S., Rossi, A., & Baden-Fuller, C. (2015). From business model to business modelling: Modularity and manipulation. In Business models and modelling (pp. 151-185). Emerald Group Publishing Limited.

Brovman, Y. M., Jacob, M., Srinivasan, N., Neola, S., Galron, D., Snyder, R., & Wang, P. (2016, September). Optimizing Similar Item Recommendations in a Semi-structured Marketplace to Maximize Conversion. In Proceedings of the 10th ACM Conference on Recommender Systems (pp. 199-202). ACM.

Budi indrawati, D. W. I., Nur Latifah Umi Satiti, M. A., & Rinasari Kusuma, M. I. (2016). Consumer Trust To Online Shop Seller Reputation (Quantitative Research about Relationship of Consumer trust to Online Shop Seller Reputation in Social Media at Economy Management Student of UMS 2012th Generation) (Doctoral dissertation, Universitas Muhammadiyah Surakarta).

Das Sarma, A., Parikh, N., & Sundaresan, N. (2014, April). E-commerce product search: personalization, diversification, and beyond. In Proceedings of the 23rd International Conference on World Wide Web (pp. 189-190). ACM.

DaSilva, C. M., & Trkman, P. (2014). Business model: What it is and what it is not. Long range planning, 47(6), 379-389.

Evans, C., & Erkan, I. (2014). The impacts of electronic word of mouth in social media on consumerspurchase intentions.

Flanagin, A. J., Metzger, M. J., Pure, R., Markov, A., & Hartsell, E. (2014). Mitigating risk in ecommerce transactions: perceptions of information credibility and the role of user-generated ratings in product quality and purchase intention. Electronic Commerce Research, 14(1), 1-23.

Hidayanto, A. N., Herbowo, A., Budi, N. F. A., & Sucahyo, Y. G. (2014). DETERMINANT OF customer trust on e-commerce and its impact to purchase and word of mouth intention: a case of indonesia. Journal of Computer Science, 10(12), 2395.

Horng, S. M., Wu, C. L., & Liang, T. P. (2016). How behaviors on social network sites and online social capital influence social commerce: the case of facebook.

Jennings, S. (2014). How To Dominate Sales On EBay And Amazon With No Inventory: Start An Online Business Using Dropshipping Method (How To Sell On EBay And Amazon With No Inventory)-Volume 1.

Jiang, G., Ma, F., Shang, J., & Chau, P. Y. (2014). Evolution of knowledge sharing behavior in social commerce: an agent-based computational approach. Information Sciences, 278, 250-266.

Kantor, J., & Streitfeld, D. (2015). Inside Amazon: Wrestling big ideas in a bruising workplace. New York Times, 15, 74-80.

Klaus, P. (2013). The case of Amazon. com: towards a conceptual framework of online customer service experience (OCSE) using the emerging consensus technique (ECT). Journal of Services Marketing, 27(6), 443-457.

Laroche, M., Habibi, M. R., & Richard, M. O. (2013). To be or not to be in social media: How brand loyalty is affected by social media?. International Journal of Information Management, 33(1), 76-82.

Maria, K. D., Kindangen, P., & Rumokoy, F. S. (2016). THE EFFECT OF ELECTRONIC WORD OF MOUTH ON CONSUMER BUYING DECISION IN LAZADA. JURNAL RISET EKONOMI, MANAJEMEN, BISNIS DAN AKUNTANSI, 4(1).

Ritala, P., Golnam, A., & Wegmann, A. (2014). Coopetition-based business models: The case of Amazon. com. Industrial Marketing Management, 43(2), 236-249.

Varia, J., & Mathew, S. (2014). Overview of amazon web services. Amazon Web Services.

Wamba, S. F., & Carter, L. (2016). Social media tools adoption and use by SMEs: An empirical study. In Social Media and Networking: Concepts, Methodologies, Tools, and Applications (pp. 791-806). IGI Global.

Wijayanto, A. (2017). The Impact of Interactions between Retailers and Consumers in Social Media toward Consumers’ Loyalty and Sales Performance.

Zhang, Y., & Pennacchiotti, M. (2013, October). Recommending branded products from social media. In Proceedings of the 7th ACM conference on Recommender systems (pp. 77-84). ACM.

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