Retail Success Factors Amazon com examples Chuck Ehrlich

Internet Retail z. New ballgame z. Different rules z. Look at what’s working ©

Amazon. com z. Combining multiple factors to achieve success © 1999, Chuck Ehrlich all

What factors or activities define Amazon’s business ? Unlimited virtual shelfspace Wholesale relations Large

What factors or activities define Amazon’s business ? Large Selection Low Overhead Convenience &

High Performance Service z. Web site is fast, reliable, and easy to use z.

Branding z. Short, clever name/URL/tag line y. Good: Amazon. com worlds largest bookstore y.

Networking z. Referral program z. Co-branding and cross promotion © 1999, Chuck Ehrlich all

Community z. Posting customer reviews with author reviews z. Customer gifts ybookmarks, note pads,

Personalization z. Extensive customer profiles z. Recommendations z. Other readers who bought this title

Trust z. Guarantees z. Return policy z. Great customer service © 1999, Chuck Ehrlich

Extended Service z. Extensive subject index z. Search z. Ability to order before publication

Logistics z. Fast, reliable, inexpensive shipping z. Originally no inventory, use Ingram © 1999,

Price differences between Amazon and Barnes&Noble Date Titles with different prices (125 total) Total

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What factors or activities define Amazon’s business ? Unlimited virtual shelfspace Wholesale relations Large Selection Cross Marketing High Advertising Co. Branding Publisher Relations Superior service reps High Customer Service E-mail confirm Less real estate Less Employees Low Overhead 1 st mover Convenience & Ease of use Easy Search Add useful information Customize No hassle return Brand Share of Mind Large Customer Database Always open Always there Low Price Innovative Technology © 1999, Chuck Ehrlich all rights Low inventory Cost Structure Washington State reserved Graphic courtesy of the Kellogg School, NWU 4

What factors or activities define Amazon’s business ? Large Selection Low Overhead Convenience & Ease of use High Customer Service Brand Share of Mind Large Customer Database Cost Structure Customize Customer Loyalty Low Price © 1999, Chuck Ehrlich all rights reserved Graphic courtesy of the Kellogg School, NWU 5

Community z. Posting customer reviews with author reviews z. Customer gifts ybookmarks, note pads, cups, etc. z. Promotion where customers collaborate with famous authors © 1999, Chuck Ehrlich all rights reserved 9

Personalization z. Extensive customer profiles z. Recommendations z. Other readers who bought this title also bought z. Other readers who bought this author also bought © 1999, Chuck Ehrlich all rights reserved 10

Price differences between Amazon and Barnes&Noble Date Titles with different prices (125 total) Total price difference on 125 titles (Am-B&N) 17 Mar 97 124 $ 177. 87 24 Mar 97 122 $ 94. 29 5 May 97 125 $ 133. 86 13 May 97 Barnes & Noble enters online business 10 Jun 97 54 $ -10. 32 1 Jul 97 52 $ -10. 73 4 Aug 97 53 $ -11. 39 Source: OECD and Kellogg, NWU © 1999, Chuck Ehrlich all rights reserved 14

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