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Essay on Amazon.Com E-Marketing Model
Introduction
Amazon.com, a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers Earth's Biggest Selection. Amazon.com seeks to be Earth's most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices. Amazon.com and other sellers offer millions of unique new, refurbished and used items in categories such as health and personal care, jewelry and watches, gourmet food, sports and outdoors, apparel and accessories, books, music, DVDs, electronics and office, toys and baby, and home and garden.
Amazon’s E-Marketing Model
Amazon.com introduced the most famous affiliates program with the launch of the Amazon Associates in July 1996. Amazon currently has about a quarter million sites in their affiliates program. In the case of Amazon, the referral fees work as follows:
- Fees are only paid for users who buy books at Amazon during the visit that results after having followed a link from the affiliated site,
- The fee is usually 5% of the sales, though it can be more for certain books if the site linked directly to the product page for that book
In the case of Amazon, the affiliated site does not get anything if the user doesn't buy during the first visit but decides to return and shop later. Other affiliates programs are more advanced and pay based on the lifetime value of the referred customer and not just based on his or her initial purchase. It obviously requires more programming to keep track of users over time, but all marketing theory certainly tells us that lifetime value is more important than individual sales, so hopefully we will get more affiliates programs to take the long view in the future.
Amazon.com also uses the advertising model, which is extension of the traditional media broadcast model....
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