E-Commerce at Amazon.com - Essay Example

According to Conner-Sax and Krol (1999), the advantages of buying books online are as follows: (a) buyers can select from a diverse range of options; (2) discounts are offered and easily availed; (3) books that need to be located could be sourced and information could be relayed to the buyers through email; (4) book reviews are available enabling readers to scan through the gist of the content, and (5) these are safe to purchase online in terms of product packaging and physical characteristics.

On the other hand, the disadvantages of online purchases of books are: (a) the inability to pick up the actual book and scan through it; (b) shipping costs that need to be paid, and (c) there is a waiting time before it can be used. Effect of Online Books Downloading online books affects Amazon in terms of a decline in the number of books sold or to be sold. However, its strategy was to be the marketer of Kindle e-books as a buffer for the expected decline. In a report by Catholic Online (2011), the article revealed that “Amazon, the world's preeminent Internet bookstore and the top online retail site has announced that Kindle e-books have overtaken paperback books as the bestselling type of content in Amazon's bookstore” (par. 1). Further, due to increasing competition, the use of indirect channel of distribution in marketing the Kindle brand was applied when Reuters (2010) reported that “Amazon.

com is going indirect -- through the retail channel -- to sell its Kindle e-reader device as the competition in the market grows with challengers including Barnes & Noble's Nook and Apple's iPad, which are both available at Best Buy. Amazon had previously only sold its Kindle e-reader direct from its website” (Reuters, 2010, par. 1). Benefits for Setting Up E-Commerce Options Traditional retail stores could consider setting up e-commerce options to avail of the benefits enumerated above. In addition, contemporary buyers want the convenience of shopping online to avoid the hassles of traffic, lining up to pay, and finding a variety of options on the internet.

As Conner-Sax and Krol (1999) averred, “the Internet's search functions also make it a good shopping tool. (And) one-click ordering is another Internet plus” (pars. 23 and 26). To augment the traditional marketing channel, it would be useful to set up e-commerce to tap a wider range of clientele and enjoy the potential to increase productivity and financial success.