The electronic commerce has not only benefited the company but it’s the mutual benefit of the receiver and the provider that has given it such an important status. Customers do not have to move around from one place to another to shop the desired product of their choice. The options available at front all at once make it easy for the customers to determine their own choice as well along with the decision of what to buy. It is convenient as the shopping doesn’t involve getting out of house and moving around from place to place to get what is wanted.
The shopping is not limited to the products availability in the country only. Varieties from abroad are also available giving an option to the buyer to choose from. The option of auction available also helps for customers to avail most wanted products at their desired prices. Suppliers & Distributors: There are certain benefits that the suppliers and distributor can also reap out of the electronic commerce transactions: The distributors do not have to stock the product, so they can save money for storing of inventory and stocking costs.
“Suppliers are able to sell all of their products through many retailers by dealing with just one company” (E-Commerce Prediction, 2007). Due to the direct transfer of possession to the eventual customer, it involves less intermediaries and therefore saves cost in that as well. Hence, both the providers as well as the customers are receiving benefits which surpass their cost. This is the only method by which a business is lucrative when both the parties are receiving benefit from the other.
Amazon has developed trust and faith over the years among its customers which has helped its customers to make sales without any cautions and therefore, both shares a mutually beneficial relationship. In order to maintain such a wide network of business on the internet the planning needs to be done with utmost concern in order to meet the demand and organize it in the most efficient and effective manner possible. Defining Strategic I. T. Plan: In order to cater to the wide market of huge audience, the website needs to have a strategic plan in order to address the wide audience that it caters to.
The strategic plans by Amazon. com to cater the market have been quite successful as they have defined people’s preferences with their offerings as “electronic commerce sites such as Amazon. com, people's expectations about the nature of information and information retrieval are drastically changing. Globally networked computers enable us to communicate with large numbers of people who are separated by great spans of space and time. ” (University Libraries of Notre Dame Website Strategic Plan, 2006). Define the Information Architecture:
The information architecture is different for four different types of retailing in Amazon. com, which are maintenance, provisional, consumption and pilgrimage. “The consumer expects to have a fast, efficient buying experience. For an e-commerce site, this requires an information architecture which supports users’ ability to find and purchase objects quickly. ” (Schleicher and Kush, 2001). Hence, it is important that the information architecture for an e-commerce site to have an ease built within it to provide an efficient and easy to use service to its customer in order to encourage frequent visiting.