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Range of Products and Services Available on Amazon

The study discusses the Amazon e-commerce business and the company uses strategies to operate its digital business worldwide. This company is both a “B2C” and “B2B” organization. Provide the range of products and services available on the company website, and small businesses in the e-commerce sector joined the site for supplies. Amazon was popular and known for its B2C capabilities. Businesses of approximately every type can sell goods on Amazon, from furniture and shoes to food and also tech gadgets. Amazon Prime is the best-known feature presented by Amazon, which also provides free transportation and other advantages for a very low yearly fee. The first part of this study discusses the key trends and advantages of digital business. The second part identifies the new and emerging business models of Amazon and how the company uses these models in its digital business. The third part analyzes strategic alliances and new collaborative relationships with the use of digital technology and the fourth section examines how cryptocurrency is the business of Amazon. Amazon is perceived as the face of today's market, digital, worldwide, and continuously expanding.

 Amazon global  retail e-commerce sales  from 2017 to 2021

Figure: Amazon global  retail e-commerce sales  from 2017 to 2021

(Source: statista.com, 2022)

The above figure presents Amazon's business growth from 2017 to 2021. The business was estimated and measured to have earned “346 billion US dollars” in its eCommerce sales yearly in 2019. In 2021, Amazon's digital business is estimated to reach about “468.78 billion US dollars”. Amazon is the biggest digital marketplace and its platform is mainly measured by market capitalization and revenue.

Overview of key trends and advantages 

Definition of digital business

Digital business or marketing is the procedure of applying certain digital technology to redesign business models as well as change an organization's services and products and also consumer experience- develop new products that generate new value as well as connect audiences with things, experiences, and insights.

Advantages of Digital business

  • Increased consumer engagement
  • Greater creativity, collaboration, and innovation
  • Increase agility and resilience
  • Improved resources management
  • Enhanced responsiveness to the needs of business
  • Developed productivity and efficiency
  • Enhanced visibility and transparency
  • Enhanced revenue opportunity
  • Quick time and easy to market
  • Increased digital presence

Trend 1: Enhanced online shopping

People expect the online shopping popularity to continue and accomplish through 2021. It is not only because the pandemic end is no way near, with more and new infectious forms cropping up instead of vaccine availability. Even though this does impact purchasing per se, in the context of “brick and mortar” shops not being able to reopen stores, there exist common causes for customers to prefer online shopping: basket consolidation, no physical effort, convenience, and also accessibility. The report of Statista states that “digital purchasing is the most preferable and popular internet activity worldwide” (Intelligence, 2022). Based on the outcomes of the analysis of the business’s studies, digital business sales globally reached “US$4.28 trillion” in 2020. The company is projected to maximize to US$5.4 trillion in upcoming years. Also with the fast expansion of digital business, online advertising and promotions cannot be far behind. In 2021, this year is the time to eliminate mistakes and errors. Online purchasers are responsive to online ads and promotions, which have currently replaced many Television commercials in their lives as the users can invest more time in devices instead of the television.

Key Trends and Advantages of Digital Business

Trend 2: Biometric-based payments

“Amazon One” is one of the fast, and “biometric-based payment terminals” that enables consumers to verify “in-person transactions” with a hand palm scan. In 2020, this payment system was launched and also expanded into New York as well as Seattle locations, involving many “Whole Foods Market Stores”, in early spring and also in winter 2021. New conditions and regulations were fairly good, as no contact payments methods streamed when the Covid-19 situation made consumers health-conscious as well as touch-averse (biometricupdate.com). Enhanced familiarity with online payments options such as mobile or digital wallets can make users even more inclined to examine other new Amazon platforms.

 Biometric-based payment

Figure: Biometric-based payment

Trend 3: Amazon advertising

In 2021, The Company netted “$26.31 billion” globally and “$20.47 billion” in the US in advertising revenues, each their most current forecast. The ads of Amazon have been developing quickly for years, as well as development accelerated currently due to the Covid-19 pandemic situation and the related step transforms in the retail transaction share conducted digitally. The advertisements business of Amazon has many facets are :

Advertisers of Amazon sell services and products on their site can purchase impressions mainly based on the value of each click on the retail property of Amazon. It is approximate that “Amazon’s net US” as well as profits gained from these forms of placements (Intelligence, 2022).

  • Publisher services of Amazon present header bidding incorporation for publishers mainly to access demand emerging from “Supply-side platforms” and Amazon demands.
  • “Demand-side- platform” of Amazon that authorizes advertisers, involving nonendemic brands and businesses, it purchases display impressions over retail properties of Amazon, non-retail properties such as IMDb TV and also Twitch, as well as the “programmatic web”.

Trend 4: Artificial intelligence

This technology in virtual reality, as well as augmented reality, would be in high demand on digital platforms as customers look to replace the in-shop purchasing experience. This holds real, specifically for the fashion sector. With the digital marketplace as well as shops, buyers are unable to strive for footwear and apparel. This technology solves these difficulties by giving virtual fitting. It also examines browsing purchase history to provide consumers with options as per their certain choices (amazon.com, 2022.). Utilizing this technology a digital business add-on eliminates the issues of touch-before-buying in customers’ purchasing behavior. Virtual reality and augmented reality will authorize them to observe how they would look in a type of clothing or attire. This ensures mainly that customers receive what they wish and support reduced returns, replacement, and refund requests.

Application to using Digital business with advantages and key trends applied to Amazon

The company uses a specialized “information system” in digital business that supports obtaining competitive benefits through large efficiency in storing, analyzing, and collecting the data about their consumers. Amazon ads are perceived as similar to “Google search ads”. This emerges when a customer searches on the website Amazon utilizing the certain keyboard and terms that the business advertiser is looking for and targeting. Moreover, these ads are also present on company product pages. The businesses are charged every time a visitor clicks on their ads, the same as “Google ads”. Key trends applied to Amazon are that the business is driven by new digital technology. The whole business structure and pattern bypassed conventional retail distribution networks and moved to suppliers- everyone utilizing digital technology, “AKA” the powerful software and the internet (bloomberg.com, 2022). This has provided consumers with cheaper costs and the ease and convenience of customer online purchasing while also opening up distributors to foreign markets. The second trend is cloud computing technology. “Amazon web services” (AWS) transforms the hosting sector for good and effectively, as evidence of the success of AWS, other strong rivals, like Microsoft, and Google, present similar products. Moreover, ranging up and also down is a serious thing before AWS. The digital presence and technology use is there in parts and bits, yet it was this digital business that finally made it accessible to everyone and at reasonable costs. “Amazon prime” is the important part of its business that mainly makes this digital company a giant and big in the “tech industry”. “ Amazon’s “Two-day delivery service” is a forced and trendsetter business to strive as well as keep up. Due to this, the company has been capable of developing many other businesses, involving Amazon Flex and Amazon restaurant. This certain trend is striving to be managed but not mainly having the technology in place so that the company does not make this complex for other rivals to compete.

Emerging Business Models of Amazon

Defining new, emerging digital business models

Amazon uses this business model, the products and services are great examples of the established and emerging business model. Moreover, some subscribers get updates, access, services, and many more, on a yearly and monthly basis. This business model is particularly utilized for membership, content, and also software. The study analyzed that most subscription-based business models or “subscription box businesses” can earn a “40 to 60 profit margin” and also can retain almost 80 percent of the audience (techtarget.com, 2022). Users value and appreciate personalized service as well as the ease of buying and restocking new services, making the “subscription box’ business profitable and successful.

Private label business model

Amazon has great service and product ideas yet no capacity and internal resources to produce products themselves. Thus, Amazon orders from retailers and manufacturers as well as the label, after that Amazon sells products mainly under their private model (Breslin and Breslin, 2022). Amazon private label products generally enjoy high-level profit margins. Even brand holders manage the operation and production costs so they could reduce the “cost of goods sold” (COGS). Since Amazon is the only retailer in the competitive market, the company can make robust margins from its premium prices.

AWS business model

The company will make high-security awareness training provided for businesses and individuals, and this business model will provide free “multi-factor authentications devices” for consumers, giving a more safe way to safeguard sensitive information (Aws.amazon.com, 2022). The company also declared two new cyber security measures that would support individuals and organizations from increasing ethical issues and cybersecurity threats. Moreover, beginning in October, the company will make materials on cybersecurity it has created to keep the workers and all sensitive data protected from cyberattacks accessible to the people. Furthermore, Amazon declared that it would offer qualified “Amazon Web services” consumers a free “multi-factor authentication device” planned to further protect their environment as well as secure the most sensitive data from cyberattacks (Aboutamazon.com, 2022).

 AWS model of Amazon

Figure: AWS model of Amazon

(Source: Fourweekmba.com, 2022)

For extremely sensitive data like documents, proprietary and personal consumer information, and organizations' technology infrastructure important assets, powerful tools are required to secure data. Qualified account holders of AWS can receive these tools at no extra cost, giving consumers a security posture (Amazon. jobs, 2022.).

Amazon security awareness

Social engineering is perceived as a big vector for “cybersecurity attacks”. As observed in many matters, phishing emails strive to get workers to click where the link is displayed and reveal the employee's login credentials. In many matters, mobile call scams strive to get individuals to disclose important personal information (mazon.com, 2022). Amazon and people require security training and knowledge to determine and a solo keeps their data protected from cyber attacks, yet often, employees do have not adequate time to join long hours of training courses, when employees are available as well as provide the appropriate information. The company designed a succinct and digestible curriculum, utilized by its workers, to educate and anticipate individuals regarding possible cybersecurity and ethical issues.

Strategic Alliances and Collaborative Relationships

Amazon uses new and emerging digital business models

Although the company sells maximum through its parts or subsidiaries, the key business model of Amazon is generally based on the Digital market platform. The company sells different products and services on various platforms yet also authorizes third-party sellers or retailers to sell to customers (Fox, 2022). New and emerging business model platforms present the following services and products are:

Amazon video and music - this business model involves star websites such as Twitch Tv and IMDB. This adds to the company's revenue. These specifically contribute to the subscriptions-based revenue stream (aboutamazon.com, 2022). IMDB also supports individuals being capable of profiling stars while watching movies and therefore provides a more great experience.

“Amazon Prime” is the key business model, the outcome for 2019 presents a remarkable change in “Prime memberships”. This involves Prime video and other entertainment which competes with other digital businesses HBO, Netflix, and Hulu.

Prime members of Amazon spend more

Figure: Prime members of Amazon spend more

(Source: Fox, 2022)

The important business model of Amazon is that the “Amazon marketplace” is the core of the revenue. Amazon revenue is earned from customers and sellers.

Amazon books can generate revenue from the book sale. The powerful category is currently consumer electronics. “Amazon marketplace” even has a wide book depository, Kindle ebooks, and audible audiobooks.

Amazon Gaming, a little part of this business model is “Amazon Game Studios”. “Digital Game Store” sells “third-party games” (Fourweekmba.com, 2022. ).

This generally takes place when two and more individuals work and perform together to achieve common targets and aims. Collaboration has generally become the most preferred way and solution to collaboratively working with various people who have distinct opinions. The main characteristics of this relationship are open-mindedness, certain roles for people, thoughtful communication, timelines for meetings, and also expectations (onedesk.com, 2022). There are also some more features such as sharing, problem-solving, motivation, diversity, support, and communication.

This relationship through digital technology is perceived as the practice of individuals working cooperatively through internet means like “software as a solution” (SaaS) platforms. Collaboration through the digital way is getting and collaborate things done utilizing technology and devices. Instead of groups only interacting and performing collaboratively in individual, they are capable of depending on digital technology to address several collaborative requirements (Press.aboutamazon.com, 2022).

Amazon announced that they are collaborating with “Amazon Web Services”, Amazon's “new five-year agreement” established on their powerful existing collaboration and cooperation, to make it uncomplicated for their consumers to process, connect and manage data and information across the cloud as well as hybrid environments.

This is a system between two organizations to manage a collectively beneficial task while all retain their dependence. The agreement and understanding are less binding and less difficult than a strategic partnership, in which two companies pool resources mainly to generate a different business entity.

Digital businesses like Amazon are involved in strategic alliances specifically for financial, technological, industrial, and commercial reasons. These technological alliances of the business could be “vertical”, where the principal goal is to access the technological ability, and “horizontal” where the principal goal is to protect access to a market.

Cryptocurrency in Amazon's Business

An Amazon.com organization has a strategic alliance with “Amazon Web services”, declared a multi-year, worldwide agreement with “Blackberry QNX, a global leader in brilliant software as well as software. Together the company established an “Intelligent Vehicle Data Platform” which is titled “Blackberrys IVY”.

Disadvantages of a new collaborative relationship

  • High dependability mainly on technology
  • There is always high competition in digital business, so the companies on digital platforms become less collaborative with their rivals.
  • Too time-consuming
  • Privacy and also security issues.
  • Strategic alliances also generate strong competition by sharing trade secrets.

Advantages of a new collaborative relationship

  • Establish a brand
  • Concentrate on consumer retention
  • Offer attractive discounts
  • Prioritize website consumer experience

Disadvantages of strategic alliances

  • Risk of market insulation because of the digital partner’s presence
  • Lack of effective communication
  • Inappropriate resource allocation
  • Complex to keep goals on each target and objectives over time.
  • Ineffective management involvement and very low equity stake.

Advantages of strategic alliances

  • This helps Amazon to obtain a customer base as well as add competitive proficiency
  • Affordable options for acquisitions and merger
  • To help to earn economic benefits, Amazon can decrease risks and costs by distributing them among the strategic alliance members.
  • Amazon joins with the competitors to collaborate instead of rivalry.

Amazon use new collaborative relationship and strategic alliances through digital technology

In the new collaborative relationship of Amazon, online-selling pioneer “Amazon.com” has used three separate business models, which involve effective collaboration with its rivals. By harnessing the players within the business operation as well as by observing strategically consumer value, “Amazon.com” has controlled the size of the present market and also generated completely new markets for its competitors and itself. Through its rivals' collaboration-driven business model, the organization uses the most existent resources efficiently, because it includes rivals in distributing the costs by Amazon’s business operations. Strategic alliance and collaborative relationship with three rival “cooperation-driven business models”, this business model of Amazon have robustly involved its rivals are Amazon Web services and Amazon services, Amazon Kindle and Amazon marketplace.

Amazon Kindle is an electronic and digital reading device, this mainly enables cooperation- association between competing companies- to the extent that it delivers its contents and services to different competing firms. For instance, the “Apple iPad” customer acquires “Kindle application content” without acquiring a reading device from Amazon.com distinctly. In this method, the company sells the contents on their rival's platform, consequently acquiring extra consumers.

“Amazon Web services and Amazon Services” on their section offer the internet busying platform as well as server capability mainly to their rivals. For instance, Amazon.com supports the retailer of “Borders Book” and also Netflix presents TV series and also films on the internet, to the level that they get the marketplace within the infrastructure of Amazon.com. The company operated by utilizing Amazon’s websites and server base. “Amazon.com gets benefits from operating their service as well as from its development for its rivals.

Amazon marketplace provides Amazon.com’s rivals the opportunity to utilize the organization’s marketplace. When the company sells, for instance, many books on the Amazon website, rivals are also authorized to also present similar products and services there- at more reasonable rates and cheaply. Moreover, if the rival buys the book mainly concerned from a rival through the website of Amazon.com, this website is allowed to keep a portion of the total sale proceeds.

“Cryptocurrency” is perceived as a digital remittance process that does not depend on banks mainly to substantiate transactions. This is a “peer-to-peer process” that could enable any person at any place to receive and also send payments. Rather than physical capital in the actual world, cryptocurrency remittance exists completely as a digital way to a digital database illustrating certain transactions. When people transfer cryptocurrency payments, the transactions of capital are recorded and documented in a “public ledger”. This is also stored and saved in online wallets. This gets its name due to its utilization of encryption to corroborate transactions. This denoted advanced coding system is included in transmitting and storing cryptocurrency data and information between public ledger and wallets. The objective of “encryption” is to give safety and security. Bitcoin was the first cryptocurrency, which was introduced in 2009 as well as remains popular today.

Amazon Global Retail E-commerce Sales

For examples-

There are many cryptocurrencies, the best-known cryptocurrency involves:

  • Litecoin- this type of currency is the same as “bitcoin” but has transferred more rapidly to establish innovations, involving quick payments as well as procedures to permit more transactions.
  • Bitcoin- this was introduced in 2009, this is most often traded. Bitcoin was founded by “Satoshi Nakamoto”- largely believed and perceived to be a pen name for a person and group of individuals whose precise name remains unknown.
  • Ethereum- this was founded in 2015, this currency is known as a “blockchain platform” with the cryptocurrency. This is one of the most famous and widespread cryptocurrencies after “Bitcoin”.

Cryptocurrencies in E-commerce business have opened a new method for transactions as well as have thus given digital business retailers mainly with a new transaction method option. Moreover, a problem of many marketplaces, payment, and brand processors has started allowing cryptocurrency as a remittance. The eCommerce sector accepts crypto payments because the blockchain transaction cost is remarkably less than the traditional e-commerce transaction cost. When business processes mainly through “Square and Strip”, the company pays almost 3 to 5 percent on every transaction, significantly compared to the transaction of cryptocurrency which is generally about 1 percent. As per the theory, integrating crypto transactions into the e-commerce site must improve their online business profit margins. With blockchain commercials or advertising, marketers can remove the platform mainly that hosts certain advertisements. Rather than paying them, the company will present its advertisements and promotions in blockchain and this will generally be made available to the platform audience (Tafiki-ecommerce.com, 2022). Amazon directly does not use any cryptocurrency or Bitcoin, yet that also does not stop people from utilizing holding to purchase things mainly from the selected retailer. There are several issues with paying this digital business with crypto (trend-online.com, 2022). This generally includes transferring the crypto to edict currency before utilizing it for the buyer with a plastic debit card. Another best way is to fund gift cards from Amazon using Ethereum, Bitcoin, Litecoin, Cardano, or whatever another type of cryptocurrency they own. Advantages of accepting these cryptocurrencies on the E-commerce business of Amazon are this helps to expand the market, fast transactions, improved security, cleaner data and information, and also lower charges. Amazon plans to directly use cryptocurrency, this profitable impact help them to become several digital businesses in the market with more benefits.

El Salvador adopted the cryptocurrency mainly as legitimate tender. This nation is the first nation in the entire world. The nation has mainly dealt with many technical problems and is immersed in cryptocurrency (Gerard, 2022). Moreover, individuals are careful with the payments between little and dollars of cryptocurrency. Thus, rollout constantly as big chains in the assets like Starbucks and McDonald's have started using bitcoin from mobile phones. The government of EI Salvador is usually rolling out a channel of “200 Chivo ATMs” to introduce customers to bitcoin (bbc.com, 2022). This nation began installing and starting new mining apparatus that harness and yoke power mainly from the “volcano” in 2021.

Nayib Bukele, the professor who emerged with the new plan to allow and adopt Bitcoin. This achieves a successful and effective rollout, the transformation may profit the economy of poor Salvadorans. The government people in this nation assert that Bitcoin adoption will enhance affordability and reduce the cost of services, increase payment options as well as enhance financial innovations (Tomorrow. city, 2022). Additionally, if successful and productive, the other nations can adopt this type of currency also, enhancing the ability of Bitcoin to reduce global poverty. Understanding and analyzing the case of adapting cryptocurrency in this nation and digital business will benefit this highly, this helps the nation to improve the inflation rate, reduce discrimination, bitcoin donations, stop corruption, and increase transparency in-country business.

Definition of Digital Business

Conclusion 

It is concluded that Amazon's business strategy is consistently concentrating on investing in new and emerging technologies, improving the logistics application, enhancing the web services by its fulfillment capacity, Research and development activities in Amazon and M & D strategy in logistics, protecting the inventions utilizing patents. Amazon is an eCommerce giant that may soon enable digital currency or cryptocurrency as payment options. The company may allow their customers to make payments in digital currencies such as Bitcoin, the company soon is significantly hiring a blockchain product and digital currency lead for the payments group. The company performs exceptionally effectively as opposed to revenue per user, which is the most important initiative for commercial sites, whether this is a social network, media site, transactional retailer, financial services, and search engine. Benefits per visitor will be quite distinct because of remarkably fewer costs from other coms such as Google and Facebook.

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