Amazon.com was founded by Jeff Bezos in Setle, Washington, the German States in 1994. Initial name of this company is "Cadabra." In July 1995, Jeff Bezos and then change the name of this company by the name of the river rapids in the world, yauitu Amazon, in hopes of making sales through the web sederas amazon river water. The basic idea of this company is to sell books online with a minimum stock holding by adding value added (value added) to the buyer compared to conventional bookstores. Minimal inventory can be done because Amazon.com only intercede for book publishers can be selected online from home or from anywhere in comfort (conveinience).
After launching their online bookstore, not long before Amazon.com improve product features and services offered and the ability of e-retailingnya. These features were added product is one-click shopping, which is also patented, personalized products, wish lists and greeting cards.
Amazon.com also add a service notice "special events" such as birthdays, dates and other dates menokah and desires that are registered by the reader. With this notification, Amazon.com and then recommend something that can be used seagai prize, which is sold and available at Amazon.com, and can be sent directly to the concerned who wants it.
Excess Amazon.com began aggressively adding new products or new services being offered. Realizing early mover sellers in cyberspace Amazon.com began selling items other than books. The strategy used is a growing strategy. In mid-1998 the company launched an additional product of music and video DVDs. In autumn 1998 the company was also expanding its wings into Europe by acquiring an online bookstore in the UK and Germany. Beginning in 2000, this company already offers seven categories of products, gardens and parks, to home improvement equipment in over 160 countries.
In fact Amazon.com customers increased from year to year. Amazon.com customers as many as 1.5 million subscribers in 1997, to 14 million in 1999 and 25 million in 2001.
In 1998, Amazon.com adds new business model, namely two auctions (auction) and an online market place (markerplace) online. Seeing the success of the virtual world, Amazon.com add online auction transactions on its website. Sales are usually conducted by way of auction include items that will be sold at the list of items to be auctioned with starting price. Candidates pembel filed by raising prices of the previous price. Agreed price of goods is the last price after the auction closes. Fatherly auction in Amazoncom, prices of goods remained determined. Auction is only levied on goods, not price. Amazon.com named "zshop." Shoppers can pay directly to the seller of goods or through Amazon.com using a credit card. To ensure buyer confidence and form, Amazon.com provides a warranty for $ 1000 if the seller of goods is not honest (eg goods not in accordance with their specifications) or after the goods are not paid until the buyer's hand.
With "zShop" This, more than 100 merchants can "rent" (rent) space on Amazon.com. At the end of 1999 each bilannya to open a web store with the goods sold up to 3000 items or can also pay by 10 cents each item individually. Dsisamping it, traders are required to pay a transaction fee of 5 cents for each item sold with a value of less than $ 25, at 2.5 cents for items worth $ 25 to $ 999, or 25.1 cents to be worth $ 1,000 or more.
In early 2000, Amazon.com develop its business model re-premises form a capital partnership with a particular brand online retailers to advertise on the site of Amazon.com. In August 2000, Amazon.com redevelop its business model by announcing a strategic alliance with ToysRus.com to operate the toy store and video games. Under the 10-year cooperation agreement, Toys "R" Us, Inc.. Willing to buy and manage the preparation and Amazon.com to handle and develop the site, sales orders dna manangani eat it and managing customer services in preparation of its distribution centers in the United States. Amazon.com will be compensated with warrants to buy 5% of the shares of Toys "R" Inc., receive a fixed payment per period, per unit transaction services, and a single digit percent of revenue.
With these developments, Amazon.com has adopted a market place (marketplace) and ASP are profitable and at the time many analysts who had expected the company's business model continues to float into the other categories. These estimates occurred in 2001, the company's alliance with Amazon.com to retailers and traders of physical products through catalogs, by All-Clas MetalCrafters, AT $ T Wireless, Borders, Catalog City, Circuit, Egghead.com, Target, Waterstone, and Wusthof.
On August 30, 2000, Partners and Amazon.com living.com declared bankruptcy and closed the sale of furniture online. Living.com company disbanded in August 2000 with only paying a fraction of the $ 145juta approved to Amazon.com. This meant compressing Amazon.com canals.
Illustration above shows how retailers ranging from Amazon.com or electronic bookstore into a horizontal portal and ASP by offering many products and services, and make alliances with other business models.
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