AMAZON
I chose Amazon as it is always amazed me in making profit. Amazon offers wide range of
products and services especially free shipping which attracts million of customers.
Amazon is a fortune e-commerce company based in Seattle, WA, founded by Jeff Bezos in
1995 as a website that only sold books and then diversified to sell other items such as CDs,
DVDs, Software, video games, electronics, toys, furniture and clothing.
It made a revolution in e-commerce industry and attracted millions of customers. It has to
compete with other e-commerce companies like Yahoo, eBay and Halibaba but still it
sustains and generates more revenue on e-commerce market.
The Popular products and services Amazon offers are e-commerce site, video streaming,
cloud computing, eBook readers, tablets and phones. Amazon most successful product is
Amazon Prime which gives customers to shop more by offering free shipping. But here is
the question, is Amazon makes more profit from that service? The answer is no. Though, it
generates more revenue by increasing sales growth. Amazon Prime offers customers a
two-day free shipping for one-time annual fee of $79 which is affecting the annual profit.
The numbers of customers who use Prime are growing. Prime had 16.7 million members at
the end of the September or 40 percent increase of customers from last year. Amazon
Prime customers spend approximately $1340 a year compared to $ 708 by non-Amazon
Prime customers and account for 50 percent of product sales.
They buy more than 50 percent frequently than non- Amazon Prime customers and they
