Digital Business Report: Amazon's E-commerce Principles and Impact

This report provides a comprehensive analysis of Amazon's digital business operations. It begins with an overview of digital business, highlighting its advantages and disadvantages in the context of Amazon's e-commerce model. The report then critically evaluates various digital business models, including B2C, B2B, and C2C, and discusses key issues such as security and ethics. Furthermore, it explores the impact of collaborative relationships and strategic alliances enabled by digital technology on Amazon's growth and financial position. Finally, the report examines how e-commerce principles are utilized by Amazon. The analysis covers Amazon's online operations, customer engagement, and the challenges and opportunities in the digital marketplace, offering insights into its strategies and impact within the industry.

Digital Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1) Overview of digital business with their advantages and disadvantages. ................................3
2) New digital business models and key issues of the models ..................................................5
3) Impact of new collaborative relationship and strategic alliances thorough the digital
technology....................................................................................................................................7
4) Ways e- Commerce principle could be used by the company.................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Digitalization is a profound traumatization of the business that incudes the use of digital
technology to optimize business process in improving the companies productivity and
performance within the industry and also create good experience for the customers.
This report will cover the study of Amazon which is American Multinational Technology
based company who are operating their business mostly digitally and gaining competitive
advantages. They sell varieties of the product and services on online site including books,
furniture, electronic tool, cloths etc. Amazon is known for its disruption of well-established
industries through technological innovation and mass scale.
This report will provide the overview of the digital business with the advantages and
disadvantages to the Amazon. It will critically evaluate the new emerging digital business
models in the context of key business issues such as cyber security ad ethics. This report will
also evaluate the new collaborative relationships and strategic alliances thorough the Digital
technology for the Amazon Inc. In the end of this report will Discuss how E- commerce
principles could be used by the Amazon.
MAIN BODY
1) Overview of digital business with their advantages and disadvantages.
Digital business is the activity of new business designs by blurring the digital and
physical worlds. It promises to usher in an unprecedented convergence of people, business and
things that disrupts existing business models - even those born of the Internet and e-business era.
This'd of business are run digitally by using the internet and business and organization intersect
with each other digitally and if they have any quarry then customers can contact digitally to the
companies customers executive for the solution of the problems (Haffke, Kalgovas and Benlian.,
2017). Amazon Inc is the E-commerce business which means they operate their business
digitally. They are selling variates of the product and services to their customers online an almost
all kind of products are available for the customers on their online shopping site. They also
provide digital services for the customers inquiries and to connect their customer executive
customers can reach to their website and talk to customers care on the call or message. They take
order of their customers online and deliver their product from to the customers thorough the
logistic. They do not have any digital platform where customers can reach and purchase products
from the Amazon Inc. they have to order their product on their online side and customer can pay

digitally thorough the cards, or they can take COD facility that Amazon provide to their
customers. Their are soke advantages and disadvantage of the digital business that also affect the
business of the Amazon-
Advantages
Profits
Online or digital business earn now days higher profits as compare to the physical
business, Amazon is top most e- commerce company and ECO of the company is the richest
man in the world. This is the prof and advantages of the digital business. People can earn huge
products by opening their business online. Amazon is taking the advantages and selling the
product online and their profits are increasing day by day.
Better reach
Digital business have many advantages and one of them is better reach to the customer,
they can find the customers who want to buy product in lines, and they want product should be
delivered at their door. Customers directly reach to the website of the Amazon and search
engine also suggest the name of the company that also helps them to create huge traffic on their
side which is one of the best denitrify for the Digital business (Ismagilova., and et.al., 2017).
Most of the people, use the internet so its easy for the Amazon to search to those customers
convert them to the loyal customers.
Save money
Digital business can save the money that companies spend on the only stores, here on the
digital business like Amazon directly have contract with the supplier manufactures they just
place the order and helps customer and company to meet each other and some the share proforma
the product. This is how they earn money and also save their money. Physical stores need huge
investment for the designs, and they also have to pay the rent (Ismail, Khater and Zaki., 2017).
This is the huge benefits that are taken by the Amazon.
Disadvantages
Customers trust
Customers do not trust nowadays to the E- commerce sites because there are many fraud
companies who place the order and take company from their customers and do not deliver the
product to the customer. This kind of scammers are creating the fear in the customers of
Amazon as well.

Privacy and security
Privacy and security is the biggest issue that affect the customers decision. Online sides
are getting hacked by the hackers and privacy and data of the customers are the most valuable
information for the Amazon. It makes necessary for the company to make their security features
stronger. Still, most of the customers like to buy their product and services from the physical
sites due to the privacy and security issues.
Maintenance cost
Companies like Amazon have higher maintenance cost that thy have to pay to their
software engineers to avoiding bugs from the sides and new improvement of the application and
updates. This cost huge amount from the Digital business and not every business can effort this
kind of maintenance every time. Also, pay billions of dollar as their maintain for the website.
2) New digital business models and key issues of the models
Their are various business models that can be used by the digital business and here are
some of them -
B2C Models
Business to consumer models allow the business to sell their product to the end users the
B2B models is the models common. In this models business sell their product and services
directly thorough the logistics, and they wok to satisfying needs an demand of the customers. the
B2C model enable other form to use business assets like software, automotive and chosen are the
best example (Kreutzer, Neugebauer and Pattloch., 2017). It is no longer the possession , but the
consumption or the use of the asset that are monitored. The technology helps to make it possible
to measure the consumption or the usage. In the field of the car sharing like Uber that provide
online cars services use the Instead model for their business and their redound digital services to
their customers and customers can take services form the company and satisfy their needs.
Business 2 business models (B2B)
In a business to business models firm sell their product or services to the company
directly. They do not sell their product to the end customer, most of the IT companies use this
models to run their business only and consult them for their business. The B2B follows the
principles of the competence standardization: Previously personnel-intensive activities such as
sales were made more efficient by automatic processes. The challenge for companies is to

successfully manage the upgrade from the Freemium version to a paid version. This kind of
models cannot update their sites which can affect their site traffic, and they will get limited
features on the side that will dissatisfied the customers and not able to carte good experience for
the customers.
Consumers to Business (C2B)
Consumers to business model allow the individual to sell their goods and services to the
companies and ion the E- commerce models a site might allow the customers to post their work
they want to be complete and have business bid for the opportunities (Luz Martín‐Peña, Díaz‐
Garrido and Sánchez‐López., 2018). Both people bid for the work and middle organization
secure the payment from the both customers, and they take some of the commission from the end
users This is similar to the affiliate business models, a platform functions as an intermediary
marketplace for the product and services. In is models supplier and the product demand are both
together. This models can work alone and represent the extension of the existing offers of the
organization. A property management of the organization that allow the company it external
services providers success as the cleaning staff or the key services to be integrated into the tenant
app already has the digital business model in the form of marketplace of the market.
Customers 2 Customers (C2C)
Customers to customers are also known as the online market where customers exchange
their goods and services to the other customers to make the money and transaction fees are
charged to the both the partiers by the sites. There are various organization whch a have adopted
this kind of business models and best examples of it can be E-bay which allow the customers to
list their product on the site and other customers can buy the product suited by them and
transfection fees is given by both the parties to the E-Bay application for the platform they are
providing the both the customers.
Key issues of the Online business
There are some key issues that can be faced buy the Digital business like Amazon in their
business models related to their security and the ethics within the business.
Security issues
The security related issues hacking can affect the reputation of the Amazon because
there are many users how has the liked up with the Amazon, and they are regular customers of
this side and if their website got hacked then the hacker can steal the most important data like the

information of the customers can be stolen by the hacker, and they can use to sell to the other
companies and it is celebrity so it is necessary for the company to provide better security to their
users, so they can trust the Amazon and continues buying their products from the company.
Ethics
It is necessary for the Amazon to follow the e-commerce busies ethics but of the
problems that can affect their ethical principles like found by the business who are associated
with the Amazon or the damage products and bad replacement polices (Remane and et.al.,
2017). It is necessary fr the Amazon to follow their ethics to create good image in their market
and as a market leader of the E-commerce industry company should work with their ethics and
understand their responsibilities within the business for the brand reorganizationist and
improvement in their sales and image.
3) Impact of new collaborative relationship and strategic alliances thorough the digital
technology
The new collaborative relationships and strategic alliances through digital technology can
have both positive and negative impact on the c. Mostly it can have the befits to the company
and it is necessary for the companies to collaborate with each other for the expansion of the
business. Here are the positive impact on the collaborative relationships and strategic alliances
through digital technology.
Business grow
To grow and expand the business companies on the digital channels need to spend huge
among of money so thy can add more better features and make their side more effective and it
can be possible thorough the organization when to collaborative relationships and strategic
alliances. It is necessary for the small business to collaborate with the other digital business for
the comparative advantages (Schwertner., 2017). Both together can grow in the market and stay
within the competition, and they will have strong financial structure that will allow them to be
strong.
Strong financial position
' Company will able to be lead the market with the strong capital and because two
business will collaborate equally in the business and it can be used by them for the better
development of their product and services, and tying financial position of the business within the
market will enable them to innovate their products and services and Amazon will able to provide

varieties of the product with the uniqueness features in their products and services. Mostly it can
have the befits to the company and it is necessary for the companies to collaborate with each
other for the expansion of the business. Here are the positive impact on the collaborative
relationships and strategic alliances through digital technology.
Entry in new market
Collaborative relationship and strategic alliances will also enable the Amazon in their
new market entry. Its not easy for the companies to enter the new market because it can be risky
for them so collaborative relationship and strategic alliances can be the good operation for the
Amazon and they can take risk if the people in that particular country will adopt the features and
products digitally provided by the Amazon. I they filed in the new market then also both the
organizations will pay the equal losses and it they successful enter and expand their business
then they can effectively gain all the share of the market, and they can expand their business
effectively which will affect the profitability of the commonly, and they Will able to show their
presences.
Common objectives
Both the collaborative relationship and strategic alliance's aggrievement will cover the
common objectives which means that both the company will work together on the same
objectives and both provide effective objectives for the growth. Together they will make more
better and innovative ides as compare to the individual company (Scuotto., and et.al., 2017).
They will able strategies and their vision with each other that will helps them to cover the
success within the market, and they will able to cover their brand value as well in the new market
where they want to enter. It is necessary fr the Amazon to follow their ethics to create good
image in their market and as a market leader of the E-commerce industry company should work
with their ethics and understand their responsibilities within the business for the brand
reorganizationist and improvement in their sales and image.
4) Ways e- Commerce principle could be used by the company
Amazon is the top not E- commerce company and Woking already in this industry from
a long times and selling their product in all over the world. There are some principles of the E-
commerce that need to be considers by the amazon in their business, so they can work ethically
and create good image in their market. Here are some principles of the E- commerce business
that could be followed by the Amazon -

Use Friendliness
It is necessary for the Amazon to be friendly with their customers in the negotiation. An
easy search process allows the users of the user s to reach the product age, and they can buy the
product easily. W including the picture and details of the product can also help the customers k
to know more about the brad, so they should also follow these principles to be more friendly with
their desired customers and gain their locality thorough it.
Uniqueness designs elements
T make the buyers notice, it is necessary for the E- commerce site Amazon to be more
flock, they should implement some of the bold and unusual components in their designs that can
be noticeable for the customers and act them to buy their product and services (Sousa and
Rocha., 2019). Designing should be in ways that serves the purpose and needs of the users and
customers can clear their doughs by looking the products.
Emphasize on the security
It is necessary for the Amazon to secure the data and the privacy of their customers, each
and every person nowadays are more con concern relate to their privacy. Amazon can use v
various methods to make their site more secure for the customers. They can hire the team, who
can only loo for the data privacy of their customers and helps provide better security to the
customers and users.
Responsive technology
Some of the E- commerce business designers use heavy HTML codes to design their
website, big flash files and large sized image to improve their designs and look of the website but
it can have the negative impact on the company because it will make their site slower. It caret the
bad image in the customers mind if their website take longer time than the usual. It is necessary
for the E- commerce Amazon to be more responsive toward these issues and improve their
technology instead of making it lower for the users and buyers of the products.
Knowing the target audience
It is necessary for the E- commerce to know that who are their audience for each and
every product segment, and they should target accordingly. It can be waste of times if they are
targeting the customers who are not interested to buy the products and services that showed by
the Amazon, so they should identify their target audience and their details like their age, interest
and s searcher, so they can easily sell their products ad fulfil the desire of the customers.

Add search columns
Search columns are most important part of by site so customers can search for the
product they are looking for (Vendrell‐Herrero and et.al ., 2018). In website do not provide the
search column then customers can struggle in searching the product, and they can face problems
to get the product, In a search engine of the Site customers can write a name of the product and
directly search will show the similar and expect result to the user.
CONCLUSION
As per the report has been provided the overview of the digital business with the
advantages and disadvantages to the Amazon. It has been critically evaluated the new emerging
digital business models in the context of key business issues such as cyber security ad ethics it
coves models like B2B, B2C, C2C, C2B. This report also has been evaluated the new
collaborative relationships and strategic alliances thorough the Digital technology for the
Amazon Inc and how it can help this organization in the market growth. In the end of this report
has been Discussed how E- commerce principles could be used by the Amazon in their business
to work ethically in the digital business of their own and create good image in customers mind.

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