Business Models
Amazon has three distinct businesses, plus a slew of nascent enterprises and developing opportunities
Amazon Retail
Starting in books and then expanding into electrical and other goods, Amazon built an online retail business around three aims:
1. Best prices: Amazon products are generally offered at a discount, a steep discount in the case of books.
2. Unrivaled selection: Amazon often has the largest selection of goods in a particular category, especially books (outside S/H marketplaces like Abebooks.)
3. Convenience: Amazon focus on the customer and try make purchasing an enjoyable experience, offering:
a. An attractive, easy-to-use customer interface (which evolved through many trials).
b. Fast and reliable delivery from vast, fully automated warehouses, first located in strategic spots in the US but increasingly worldwide.
c. A no-nonsense returns policy.
d. Reviews by customers of the product.
e. Purchase suggestions based on previous purchases and webpage viewing (an example of realtime systems).