Amazon has become a giant that cannot be ignored by the whole world. Its powerful business system has built a platform and a channel for operators and consumers through the Internet.

Amazon's B2C business model

Amazon's main business model is online sales, mainly in cooperation with book publishers. Amazon's B2C business model is based on the Internet and is very different from the traditional value chain business model. From a single book, as well as audio-visual, record and other goods related to books, it has gradually expanded its business scope to now involve multiple fields, including photography, home furnishings, food, sporting goods, etc.

Amazon's website adopts the form of online sales, directly facing consumers, less profit retention of middlemen, and naturally the price is lower than the commodity price of traditional stores. Moreover, mature logistics management makes the system more efficient and naturally reduces costs. Amazon continues to expand its business scope and provide price discounts for its own products, which strongly attracts customers, maintains customer groups, and enhances the competitiveness of the same industry.

Characteristics of Amazon B2C

(1) Consumer-centric values. Amazon focuses on consumers and has a consumer-oriented philosophy. It uses its advanced network servers to make it easier and faster for users to search for books. Senior technical R&D personnel carefully analyze the different requirements of customers in every detail and then solve various problems. When consumers choose books, the system displays information about multiple products, which is convenient for consumers to compare and weigh.

(2) Cost-reducing business philosophy. Amazon is an online e-commerce company. The virtual network economy connects merchants and consumers. Compared with physical stores at the time, early online e-commerce companies did not have rental costs and store maintenance costs, and were not restricted by time and space. The transaction time was longer, breaking the barriers of transaction scope, reducing transaction costs, and improving transaction efficiency.

(3) Expansion scope across all regions.

In 2001, Amazon officially chose a horizontal alliance cooperation form to cooperate with some music companies, publishing websites, and some physical stores.

Of course, Amazon's overseas expansion plan has never stopped.

In 1999, Amazon went beyond the United States and entered the European market, establishing branches in the United Kingdom and Germany.

In 2000, it came to Japan, taking the first step in the Asian market. Amazon abroad has inherited the advantages and characteristics of the local American website. The websites in different countries are all in the local language, which is convenient for local consumers to use.

In 2003, Amazon set its sights on China. In August 2004, it announced the acquisition of Joyo.com, the largest online book and audio-visual retailer in China at the time, and opened up the Chinese market. In 2007, it officially acquired it and changed its name to "Joyo Amazon". Recently, Amazon has cooperated with Twitter to allow users to send their favorite products to the shopping cart in the form of Twitter messages. This function aims to transform Twitter into a new shopping window for Amazon.

In 2014, in preparation for the "Black Friday" promotion day, Amazon built a new warehouse that also serves as an offline customer experience center. Unlike traditional retail, which wants to integrate online and offline traffic and form complementary goals, the real purpose of Amazon opening physical stores is to add more ports and attract more traffic to the online. Amazon's physical bookstores, Amazon Go and other experiments are also based on this consideration. Today, Amazon has become the world's largest company by market value and is working hard to expand into new markets. In the future, I believe Amazon's business model will become more and more diversified.