E-Commerce Principles: Application in Amazon's Digital Business

This report provides a comprehensive analysis of Amazon's digital business strategies, examining the advantages and trends of digital technology, and their implications for managing the business in a global environment. It evaluates the latest and emerging business models, addressing ethical and cyber security issues. The report highlights the impact of collaborative relationships and strategic alliances facilitated by digital technology, emphasizing how these strategies contribute to Amazon's market position. Furthermore, it elaborates on various e-commerce principles that Amazon can leverage to enhance its operations and customer experiences. The study concludes by summarizing the key findings and their relevance to understanding Amazon's digital business model.

DIGITAL BUSINESS

Table of Contents
INTRODUCTION.....................................................................................................................................3
MAIN BODY............................................................................................................................................3
Explain the advantages and trends of digital technology along with the implications for managing
digital business in the global surroundings of amazon......................................................................3
Evaluate latest and emerging business model of the organization in aspect of various business
issues like ethics and cyber security..................................................................................................4
Highlight the impact of collaborative relationships as well as strategic alliances through the
medium of digital technology in aspect of Amazon...........................................................................5
Elaborate the various e commerce principles that can be used by Amazon......................................7
CONCLUSION.........................................................................................................................................9
REFERENCES.........................................................................................................................................10

INTRODUCTION
Digital businesses can be referred to the use of technology by the various
organizations in the industry in order to formulate business models along with the customer
experiences and enhancement of the internal skills and capabilities in the organization that
support the main operational activities of the organization. The term digital business is not
only referred for digital brands but the traditional businesses as well who are making efforts
in order to transform their business with the help of technological advancements. The
industries have shifted to digital medium as people tend to spend more time with the
technology these days and this help in better and efficient interaction. Digital business
concept helps in creating and providing a competitive edge to the businesses (Bican and
Brem, 2020).
Amazon.com is a multinational organization that deals in technology services. The
main focus of the organization is upon e commerce, artificial intelligence, cloud computing
and Digital streaming. The organization was founded by Jeff Bezos in the year 1994 at
Washington. The business provides an online platform for software, video games, apparels,
jewelry, foods, etc. Amazon is known for its innovation in the industry to expand its business
worldwide. The study revolves around the digital business of Amazon (Boojihawon and
Ngoasong, 2018).
MAIN BODY
Explain the advantages and trends of digital technology along with the implications for
managing digital business in the global surroundings of amazon.
The digital business tends to have a huge impact upon the digital business
management of the organization. The recent trends tend to have a positive effect upon the
global business of Amazon. The various positive impacts of digital technology upon the
business of Amazon are listed below-
 Knowledge of the customers- Client knowledge is alluded to the capacities of using
diverse web promoting gadgets to target various customers. The term is furthermore
used for the workplaces like site examination instruments that give an arrangement
related to the necessities of the customers that can be addressed by the sellers to get an
advantage.. These electronic publicizing gadgets are an asset for the distinctive web
business organizes and can be embraced to get the market.
 Decreases overheads- The digital technique for business decreases the necessity for
the various costs that have been relied upon to examine the market through separated
mode. The online strategy for business gets rid of the necessities for a real retail outlet
that saves a lot of cost in buying and keeping up the force source place. This
moreover kills the necessities to utilize staff to deal with the customers. The online
strategy for business can use those resources and put into some better elevating

systems to attract customers towards their business (Haffke, Kalgovas and Benlian,
2017).
 Scope of the market widens- The online strategy for business gives a more broad
stage or market to sell and buy the things and organizations. Not at all like the
standard disengaged mode, the business isn't limited to a land degree. The online
mode works with to explore the business with the customers who have a spot with
various geographical region and a different culture. This allows the business to sell
the things past the close by customers and besides there is a probability that the things
are more pursued at various spaces of the world when appeared differently in relation
to the neighborhood natural variables. This would help in responding to a more broad
market by offering the web organizations in various notable lingos of the world.
 Can lead to faster developments- The mechanized strategy for associations grant the
relationship to have an experience a speedy improvement in their business when stood
out from the ordinary objectives. The online strategy for business could rule with the
help of various automated exhibiting gadgets that can be used to attract customers and
have wide customer base to extend the arrangements.
Evaluate latest and emerging business model of the organization in aspect of various business
issues like ethics and cyber security.
The organizations face various issues in while operating upon a business model in the
organization. The issues faced by the organizations can be in terms of ethics as well as cyber
security. The various issues faced by Amazon during the business model operations are
discussed below.
The cyber security issues faced by Amazon-
 Privacy- Privacy is a term referred to maintain the secrecy of the information by the
organization. The information regarding the customers and their transactions are to be
kept confidential by the organization in order to avoid misuse of the data. Privacy is
considered as a major issue during the course of digital business transactions.
 Integrity- Integrity can be referred to an ethical term where the information is being
transferred in its core form without the alteration. The information is not tempered
according to the self-benefit of the sender. Integrity is important in order to maintain
the trust of the stakeholders upon the organization. Integrity of data is mandatory for
the organizations to maintain that will further help in maintain and developing a
positive image of the organization in the market (Härting, Reichstein and Schad,
2018).
 Non repudiation- The process of non repudiation states that the information has been
received by the recipient in the prominent manner. The process is referred as reliable
as well as a safe method while the process of exchange of information takes place.

The non-repudiation avoids the situation of conflict or misconduct wherein the
recipient could deny receiving the information or vice versa.
 Authentication- The authentication process is referred to a process wherein the sender
as well as the receiver needs to validate their identity with the help of the information
or data saved in the software. The authentication process during the transaction is
helpful in avoiding the frauds in order to have a safe transaction. The authentication
helps the organizations to keep their information confidential (Holotiuk and
Beimborn, 2017).
The ethical issues faced by Amazon-
 People- The organization has been into various controversies were it was blamed for
not providing proper facilities to its employees and not treating them right. The
workers of the apparel factory of Amazon were found to be hired on very less wages
where they were not being paid remuneration timely. The remuneration was not
enough to meet even the basic needs of the workers. The organization has been
ranked quite low in a survey in terms of remuneration to its workers.
 Animals- It has been brought to our notice that Amazon had been selling various
products that were made from the body parts of animals. Due to this, it can be said
that Amazon has lacked in term of animal ethics. The negligence on parts of the
animal lives by the organization is a big drawback for the organization under the
animal rights.
 Politics- Amazon has been found guilty in terms of tax avoidance. The huge
organizations like amazon, when found guilty under the tax avoidance are considered
under the act of unethical conduct of business. Also there has been a situation the
organization had to face a ban in the retailer market.
 Environment- The organization has been found guilty in the circumstances where it
lacks to provide information regarding the ingredients of the product. The warning of
various chemicals were found missing in their products that could be harmful for their
consumers. The organization has over looked the impact of its operational activities
upon the environment.
Highlight the impact of collaborative relationships as well as strategic alliances through the
medium of digital technology in aspect of Amazon.
The methods like collaboration and strategic alliances are various strategies used by
the various organizations in order to expand their businesses. The use of digital technologies
has helped the organizations to go for collaborations and strategic alliances under the concept
of digital business. The impact of various strategic alliances and collaborations of Amazon
are discussed below (Ismagilova and et.al., 2017).
Impact of strategic alliances in aspect of Amazon-

 Reduces competition-The opposition in the market diminishes when an association
aligns with a solid association in the current advertising. It gives an advantage before
different contenders.
 Provides ease of entry and exit- The coordinated effort permits the association a
simple passage in another market with the assistance vital collusion with the
association that as of now exists on the lookout. The essential coalition permits the
association to effectively enter just as leave the market
 Wider market- The essential partnership method of business development gives a
wide market and better client base to the associations that structure vital coalition. The
client base of two or more associations that are a part of the strategic alliance are
engaged with the essential coalition. The all out client of both the associations
assemble to shape the client base of the essential partnership while giving a more
extensive market to both the associations (Kahre, Hoffmann and Ahlemann, 2017).
 Minimization of risk- The danger minimization is worked with at the different
associations in essential coalition as the danger is borne by every one of the
associations that frames the partnership instead of a solitary association bearing the
misfortune
 Improves productivity- The essential collusion permits the association to act in a
superior manner and improve their benefits with better usefulness. The mode of
strategic alliance compensates the negative attributes of one another subsequent in
better execution all in all.
Impact of collaborations in aspect of Amazon-
 Provides access to wider market- The cooperation method of business development
gives a wide market to the associations that structure joint effort. The client base of
two associations or more on the off chance are engaged with the joint effort. The all
out client of both the associations assemble to shape the client base of the coordinated
effort while giving a more extensive market to both the associations
 Enhances critical thinking capacity- The coordinated effort manages giving of the
capacity of critical thinking to the association. Each association manages different
issues consistently yet because of cooperation, the associations enjoy a benefit of
having more dependable and precise answers for the authoritative issues that can be
settles all the more successfully and effectively (Larjovuori, Bordi and Heikkilä-
Tammi, 2018).
 Better customer relations- The joint effort among the associations helps in fostering
the social varieties in the business association. The joint effort permits the individual
and representatives of the associations to mix and have better and solid relations with
one another. The different culture has an advantage of drawing in different territorial
clients at the hour of extension of the association. The social variety additionally helps
in fostering an information and comprehension in setting of various societies at the

association. The arrangement helps in surveying the necessities and prerequisites of
workers in the association
 Increased profits- Coordinated effort helps in working with the better correspondence,
return and correspondence in the association. Coordinated effort works with better
progression of objectives and criticisms through messages among the associations that
structure the cooperation. The great correspondence prompts better granting of
objectives among the people of the cooperation and the between the associations
overall. The open and better correspondence works with the associations in the
coordinated effort to stay away from clashes.
 Adaptability- Flexibility can be termed as being versatile to the progressions that are
being brought into the association or the business. The joint efforts permit the workers
to be adaptable with the unanticipated conditions to achieve the objectives of the
association (Namugenyi, Nimmagadda and Reiners, 2019)
 Promotes professional expertise- The cooperation permits the associations to have
joint endeavors in type of having specialists or experts. The cooperation of expert
abilities can demonstrate extremely viable and proficient for the associations
throughout accomplishing objectives through the mix of activities of the coordinated
effort. The mix of the endeavors of the association because of coordinated effort
brings about better and solid connections among the representatives and the
association.
 Ease to accomplish goals- The coordinated effort expands the feeling of responsibility
in the association. The responsibility helps in giving a persuasive workplace at work
environment. This prompts a superior and solid relationship among the workers
alongside better collaboration. The responsibility may occur through a legally binding
arrangement that will permit the associations to cooperate to accomplish the
objectives (Nwaiwu, 2018).
Elaborate the various e commerce principles that can be used by Amazon.
There are various e commerce principles that are used by the online retailers or the e
commerce websites in order to attract more customers to their page. These aid the customers
to have an easy transaction with the web portals so that more people can have access to it.
The various e commerce strategies that are necessary for the organizations like Amazon to
follow are discussed below-
 Easy to handle- The online locales that work with the customers to buy and sell the
things ought to be not hard to investigate. The site ought to be not hard to flip through
the things and mission for the fitting things in the organization. The destinations
should allow the customers with the sensible information concerning the things which
consolidate a suitable anticipated arrangement of obligations as in to work with the
customers to avoid chaos during buying (Remane and et.al., 2017).

 Safe and secure- The customers who buy from the online website or entryways look
for the prosperity and security incorporate that can be given from the affiliation's side.
The privileged information like the customer's own personal nuances and the financial
nuances ought to be stayed cautious and secure and build a trust that they won't be
bestowed to the third person. The portion entryway ought to be secured to ensure
ensured and smooth portion or, without a doubt this could forestall the arrangements
of the organization (Scuotto and et.al., 2017).
 Attractive designs- The organizations should give the site appealing designs to stay
in challenge with their opponents. The online mode is overflowing with various
buying alternatives thus the organizations ought to use some creativity for their
locales. The practical plans will allow the customers to have an interest in the site and
scrutinize dully. The arrangement ought to be engaging comparably master.
 Access to the interest groups- The affiliations should well portray their group that is
their potential customers and thereafter in like way they should design the site and
serve them in like manner. Recognizing the proposed vested party will allow the
relationship to understand the necessities as indicated by the goal gathering. This way
the customers can be given the things that they are looking for and this would lead in
cultivating the trust of the customers towards the locales.
 Product portrayal- The organizations should give a thing portrayal which is
compelling and legitimate about the things recorded on the locales. The thing
portrayal ought to be so much that it should pass on even the moderate information
that is material for the customers. The convincing thing portrayal could provoke
motivation of the customers to buy a specific thing. As the things on online stage need
genuine touch, thing depiction is the most ideal approach to give about the thing to the
customers. This will cultivate a trust of customers upon the site and the organization
(Senyo, Liu and Effah, 2019).
 Responsive technology- There are diverse seller related with the web selling stage
that will overall use evident level HTML coding close by the colossal records and
gigantic size pictures. They will overall use it to give a redesigned look to the locales
and further develop the quality anyway this also prompts lessening the speed of
stacking a page of the site. This can be time taking and the site could be overlooked if
the customers are anxious (Sousa and Rocha, 2019).
 Search bar option- The destinations ought to be engaged with a journey elective for
the customers. The pursuit bar will provoke saving of the customer's time and directly
moving forward to the things that they are looking for. As this would avoid the
incensed connection of going through the various things that may give off an
impression of being depleting and time waste to the customers. So it is critical for the
locales to introduce a request bar decision for the customers (Xu and Koivumäki,
2019).

CONCLUSION
The conclusion drawn out from the study is that digital business has become a need of
the hour. Digital businesses can be referred to the use of technology by the various
organizations in the industry in order to formulate business models along with the customer
experiences and enhancement of the internal skills and capabilities in the organization that
support the main operational activities of the organization. The study revolves around the
digital business activities of Amazon. The study focuses upon the trends and advantages of
digital technology at Amazon along with the impact of collaborations and strategic alliances
with the help of digital technology. The study also focuses upon the principles of ecommerce
applied by Amazon along with issues face by Amazon in aspect of cyber security.

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