Innovation in Amazon's E-Commerce Business: A Detailed Analysis

This report examines the crucial role of innovation in Amazon's e-commerce business. It begins by defining innovation and exploring its types, specifically radical and incremental, within the context of Amazon's operations. The report highlights the benefits of innovation, such as enhanced customer experience and increased market competitiveness. It then delves into specific examples of innovations, including drone delivery, live chats, beacon technology, buyable pins, chatbot integration on Facebook Messenger, e-payment systems, voice-activated assistants, social media direct purchases, video content advertisement, droid delivery, and augmented reality technology. The report also touches upon Google technology's impact on Amazon's business. Furthermore, it acknowledges the potential setbacks associated with innovation. The report concludes by emphasizing the significance of innovation for Amazon's continued success and growth in the dynamic e-commerce landscape. The report provides a comprehensive overview of how Amazon leverages technology to enhance its business operations, improve customer interactions, and maintain a competitive edge in the market.

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Amazon E-Commerce Business
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Table of Contents
Introduction......................................................................................................................................4
Innovation Definition.......................................................................................................................4
Types of innovation.........................................................................................................................5
Innovation in E-commerce Business...............................................................................................5
Benefits of Innovation to E-commerce............................................................................................6
Competition.....................................................................................................................................6
Examples of Innovations in E-commerce........................................................................................6
Drone innovation..........................................................................................................................6
Live Chats....................................................................................................................................7
Beacon Technology......................................................................................................................7
Buyable Pins................................................................................................................................7
Chatbot on Facebook Messenger.................................................................................................7
The chat box technology..............................................................................................................8
E-payment systems......................................................................................................................8
Voice-activated Assistants...........................................................................................................8
Social media Direct Purchases.....................................................................................................9
Video Content Advertisement......................................................................................................9
Droid Delivery.............................................................................................................................9
Augmented Reality Technology................................................................................................10

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Google Technology....................................................................................................................10
Setbacks of innovation...................................................................................................................11
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

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Introduction
Businesses enterprises run the economy of every country in the world. Therefore, a robust
economy is rooted on the ability of industries to survive and adapt in turbulent times and further
re-align to meet the needs of the community. Businesses achieve this through being industrious,
innovative and resourceful. Innovation largely contributes to the success of a company and
ultimately the growth of the industry. The market environment is dynamic which has become a
hub for innovators who continually invent ideas and multiple solutions. Innovators always
brainstorm to come with the idea that offers multiple solutions. Innovation is extremely
beneficial to the extent that companies often see their staff creativity as an asset. To nature and
improve this, they organize seminars and training to update their human resource.
This research paper has an objective of establishing the importance of incremental
innovation to the e-commerce business. Foremost, the paper digs to e-commerce nature of the
firm and its positives to the users; the platform on which the company operates and some of its
impediments to its operations. Further, this research discusses some of the emerging innovations
in e-commerce business and what it means to the firm and customers; what advantages it brings
with it. Finally, the paper makes a conclusion based on the discussion in the research.
Innovation Definition
Innovation is simply a twist of an existing product or service to realize uniqueness which
ultimately satisfies the needs in the market. This is an asset to organizations considering the
dynamic environment prompting the need to remain relevant, efficient and useful to customers.
The fast changing business environment has made organizations to continuously seek ways to
improve their processes to meet emerging needs and cope up with trends. These companies form

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sustainable and dependable systems meant to deal with market competition from rivals and meet
the demand (Engineering UK, 2014).
Organizations come up with innovations after analyzing several factors in the
environment. These include considerations of the recent trends, collecting and analyzing data and
engaging customers to understand their preferences. After that, technical team in the organization
tailors the product or services to encompass specifications of customer’s tastes and preferences
(Lawrence, 2014).
Types of innovation
Innovation at Amazon can be said to be radical or incremental. The radical innovation
(also called disruptive) is the kind that affects the market of a given sector and thus impacting on
the economic activities of this company. An example include adoption of the use of the virtual
space. On the other hand, incremental innovation is focused on the already existing Amazon's
processes, products or services and on how they can be improved. An example include
continuous improvement of the website. Thus, incrementally is concerned with upgrading what
we already have in place. Both types of innovation are critical in Amazon and should not be
ignored.
Innovation in E-commerce Business
The e-commerce business is anchored on several factors that keep the business of
Amazon rolling; which includes, but not limited to quick delivery timeliness. Giant e-commerce
business understands the essence of short delivery timeliness, and there have invested heavily in
innovation and technology. Amazon online company has launched drone delivery to its

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customers making significantly shortening the delivery period and delivering an amazing
customer experience. The drones are pilotless planes controlled for delivery purposes.
Benefits of Innovation to E-commerce
The growth of e-commerce is a plus to the customers of Amazon Company, who benefit
due to the convenience of an in-home shopping experience, anywhere and anytime. The
convenience drives Amazon's online shopping business because it presents to its users regarding
fast delivery, anytime access and much more as mentioned. The one click ability of Amazon's e-
commerce has simply created a revolution in the shopping experience and thus gaining more
grounds to the type of business. Therefore, it is evident that the success of Amazon lies in
innovation. Companies must make efforts to stay innovative because it is a strategy to stay
competitive in the market.
Competition
Innovation promotes competition of Amazon in the market. This is because the
companies that would have invented products or services will gain market share; and as a result,
Amazon's rival companies will work around the clock to come up with something that meets the
need of the market in a bid to regain its market share. Competition is therefore bred and the
customer, therefore, gains due to the availability of quality products and services (Staff, 2007).
Examples of Innovations in E-commerce
Drone innovation
The drone delivery has rapidly grown in popularity and emerged as one of the Amazon's
innovative market trends. See figure 1.0. This change significantly boosts the Amazon's business
of the company employing it because hours or same day delivery becomes a reality to its

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customers. However, the drone innovation is faced with a couple of challenges that it is an
impediment to its full and wide implementation. The setbacks include air space regulation and
the huge costs involved (WEF, 2013).
Figure 1.0
Live Chats
Amazon has added a feature of live chat which makes shopping experience exciting.
There is this live chat that one engages in ones in these websites. It is so much useful to the
visitor of the site because one gains knowledge of things not known and also gets answers to
questions (Leitao, Baptista and Rui, 2009).

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Figure 2.0
Beacon Technology
Beacon technology is one recent innovations at Amazon meant to stimulate sells through
enticement messages. The application is downloaded and installed in phones. It ideally monitors
the location and movements of the user comparable with the companies branch (Engineers
Australia, 2012). The application, at losing range, sends messages of offers available and deals
enticing the user to visit the nearby store and check for the products. Beacon technology is
gaining grounds real quick since its initiation in 2013.

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Figure 3.0
Buyable Pins
This type of innovation enables shoppers to buy Amazon's products immediately through
Pinterest and also save for later buying into the boards. The simplicity in the technology is the
one click button to complete purchases.
Chatbot on Facebook Messenger
Amazon has employed the Chatbot on the Facebook Messenger in its e-commerce
business. This is the second most popular messaging application and therefore, companies
leverage its popularity to bring gains. In addition to this, the plug-in features an AI-powered bot
that can automate a whole host of tasks, from running Amazon's adverts on Facebook or

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Instagram to distributing email campaigns (Crossrail, 2012). It even allows customers to shop,
ask questions, or receive updates about their purchase, all without ever leaving Facebook
Messenger.
The chat box technology
Chat box has brought a significant digital change in the Amazon's e-commerce business
especially its consumer interactions. This innovation has numerous advantages. Firstly, it has
scalable customer service with very minimal human interaction that is unavoidable (Bakken,
Hernes and Wiik,2009, pp. 169-182). It has improved Amazon's customer intelligence and
increased competition amongst businesses. Also, it has provided different navigational
experience - conversation-based interface to find information, less text-based searching. Besides,
it has personalization which is more like interacting with a good friend than a business (CSIRO,
n.d).
E-payment systems
Innovation has played a significant role in transforming Amazon's transaction to
paperless. This is necessary for the security of both the company's clients and the delivery
personnel for the company. The e-payment enables the Amazon's customers to make payments
via cards and other mobile applications on the delivery of their purchased items. Also, this
system enhances audit trail and accountability of revenues of the company employing it.
Voice-activated Assistants
The technology proves to be very useful when potential users visit the website of
Amazon. The customers are directed on how to navigate the website and make purchases to

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completion of a transaction. This is a plus to Amazon as it makes the websites user-friendly and
ultimately increases the chances of return customers (Lerner, Sorenson and Stromberg, 2008).
Social media Direct Purchases.
Social media has become an avenue where potential buyers look for Amazon's products
and services. Amazon has realized the power of social media and acted to utilize the same to
market their business and improve their public relations. As a result, this has become more direct
purchases on social media when options are made available to potential buyers. Averagely, face
book is the source of roughly 64% of social sales worldwide, while 93% of Pinterest users have
bought something online in the last six months (Coleman, 2013).
Video Content Advertisement
Amazon is now advancing to branded and custom videos to boost their sites and generate
traffic. The video contents are ideally tailored to give insights into the business operations and
the value their customers are likely to gain. The clips are made to be easily shared to market and
gain trust with prospective
Droid Delivery
Amazon has also employed a Droid technology in its business. Droid delivery service is
an innovation that brings the delivery solution on the ground. The little robot traveled alongside
pedestrian sidewalks and controlled to the delivery location. It moves at a speed of four miles per
hour, however, some able speeds can be more than twice of this). To enable this functionality,
the little machines are fitted with cameras and microphones to enable visibility and two-way
communication to the control center. GPS tracking and also the censors which aid in navigating
obstacles or the foot traffic on the sidewalks. The little delivery droids are environmentally

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friendly. They use less energy compared to most light bulbs and because they reduce the vehicle
emissions and also yet they are quicker in delivering products (National Science Foundation,
2011).
Figure 4.0
Augmented Reality Technology
Augmented reality was explored to boost online sales at Amazon by the use of virtual
reality technology which is informed of handsets or Google that create. This technology provides
a 3-D shopping user experience and further provides retailers as the in-home extension of their
physical stores which has the ability to increase sales with simplistic and unique user experiences
and the built-in up features that promote sales. Google technologies or virtual reality headsets are
growing in popularity due to their functionalities regarding retail marketing. Google Technology
helps Amazon's shoppers to realize the comfort of their home and envision it into an interactive
dressing room. The Google can then guide the shopper makes correct choices regarding suitable