Amazon.com was launched as an E-Retailer in July 1995. The story began as an online seller of books. In a short time it shook the “bricks and mortar” bookstores to their foundations, changed the way publisher do business, and set the standard for E-Retailing commerce.

Amazon offered discounts of 30% on bestsellers. Barnes & Noble turned up online in May 1997 by offering 40% off. Currently Amazon sell books, CDs, videos, electronics, toys, home-improvement products and healthcare products online. Through partnership it is offering even more, including groceries, pet supplies, even art and antiques. Its stock, business practices, and vision of the future are monitored all over the world. Will Amazon.com also succeed with the return of profit (ROI)? Its founder, Jeff Bezos, is celebrated as the new Internet entrepreneur and a visionary man.

In 1999 Amazon.com had a market valuation of $6 billion, more than the combined value of Barnes and Noble, and Border, its biggest bookstore competitors online and offline. Early 2000 the valuation of the company was $ 22 billion. Net sales for the quarter of 1998 were $252.9 million, an increase of 283 percent over net sales of $66.0 million for the fourth quarter of 1997. In early 1999 the stock was trading at around $ 209 a share, 23 times its May, 1997 initial public offering price of $9 a share, although the organisation still have not made a profit. Jeff Bezos, has said that the books, music and video divisions would be fully profitable during 2000. Further he projected in early 1999 that Amazon.com would reach $ 1 billion in annual sales by 2000. The actual figure for 1999 was $ 1.6 billion. Up from $ 610 million in 1998.

This Chapter present Amazon.com’s position, challenges, secrets and success factors. A checklist for evaluation of an E-Commerce web site that presents different criteria’s for success is presented in Appendix 8.

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Kunnskapskilden – E-Business

Kunnskapskilden – E-Business – E-Business, E-Customer, Relationship and Interactivity

Dissertation The E-Business, the E-Customer, their Relationship and Interactivity

Jan Vig

Dissertation av Jan Vig om E.Business, E-Customer, Relationship and Interactivity (286 sider) i forbindelse med Masterstudie i Information Technology and Communication Juni 2000.

The E-Retailer Business, the E-Customer, their Relationship and Interactivity

Table of Contents

Chapter 5

A Successful Case Study Amazon,com

5.1

Introduction

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Kunnskapskilden – E-Business –
E-Business, E-Customer, Relationship and Interactivity

Dissertation
The E-Business, the E-Customer,
their Relationship and Interactivity

The E-Retailer Business, the E-Customer,
their Relationship and Interactivity