Amazon operating model

Amazon's B2C business model is based on the Internet, which is very different from the traditional value chain business model. From a single book, as well as books-related audio-visual products, records and other commodities, we gradually expanded our business scope, and now we are involved in many fields, including photography, home, food, sporting goods and so on. Amazon. Com adopts the form of online sales, directly facing consumers, without the profits retained by middlemen, and the price is naturally lower than that of traditional stores.

The characteristics of Amazon

Amazon is an online e-commerce, and the virtual network economy connects merchants and consumers. Compared with the physical storefront at that time, the early online e-commerce had no rental cost and store maintenance cost, no time and space restrictions, and longer transaction time, which broke the barrier of transaction scope, reduced transaction cost and improved transaction efficiency.

As mentioned above, Amazon can greatly discount its core book business without the participation of middlemen, and the price of goods is more sensitive to consumers. Goods of the same quality can attract more consumers only if the price is more favorable, and the price must remain competitive.