What is Amazon and how it helps entrepreneur?

What is Amazon and How it Helps Entrepreneur?

1. INTRODUCTION OF AMAZON

Amazon is a multinational technology company that is primarily involved in ecommerce, cloud computing, digital streaming, and artificial intelligence. Founded in 1994 by Jeff Bezos, Amazon has grown to become one of the world’s most valuable companies, with a market capitalization of over $1.5 trillion as of September 2021. Initially, Amazon started as an online bookstore, but it has since expanded to sell a wide range of products and services, including electronics, clothing, furniture, and food. Amazon’s success is attributed to its customer-centric approach, which prioritizes convenience, fast shipping, and competitive prices.

In addition to its e-commerce platform, Fulfillment by Amazon (FBA) is a service provided by Amazon to help sellers store, pack, and ship their products to customers. When sellers sign up for FBA, they send their inventory to an Amazon fulfillment center, where Amazon takes care of the storage and shipping of the products. Once a customer places an order, Amazon picks, packs, and ships the product to the customer on behalf of the seller. FBA also provides customer service and returns handling for products sold through its program. This helps sellers focus on their business and grow their sales, without worrying about the logistics of storing and shipping their products. Sellers can use FBA for both their Amazon and non-Amazon sales channels, including their own websites and other marketplaces. Amazon charges fees for the FBA service, which are based on the size and weight of the products, as well as the time they are stored in Amazon’s fulfillment centers.
In addition to fulfilling orders on Amazon.com, FBA also allows sellers to fulfill orders from other sales channels like their own websites, eBay, or Walmart. This is known as Multi-Channel Fulfillment (MCF). Other than that, FBA provides inventory management tools to help sellers keep track of their inventory levels and avoid stockouts. Sellers can also use FBA’s forecasting tools to estimate future demand and plan their inventory accordingly. FBA provides access to Amazon’s international customer base, allowing sellers to reach customers in other countries without the need for additional logistics infrastructure.

2. HOW AMAZON SUPPORT ENTREPRENEURS’ DAY-TO-DAY
OPERATIONS?

Amazon supports entrepreneurs’ day-to-day operations through a number of programs and services that are designed to help them sell and market their products on the Amazon platform. Here are some examples:

Fulfilment by Amazon (FBA): FBA is a program where sellers can send their inventory to Amazon’s warehouses, and Amazon will handle storage, packing, shipping, and customer service for their orders. This frees up entrepreneurs’ time to focus on other aspects of their business, such as product development and marketing.

Amazon Advertising: Amazon offers a range of advertising options to help sellers promote their products to a wider audience. These include sponsored products, sponsored brands, and display ads. Amazon’s advertising platform uses machine learning to optimize campaigns and target the right audiences.
Amazon Seller Central: Seller Central is a dashboard that sellers use to manage their Amazon account. It provides tools for managing inventory, pricing, and orders, as well as access to data and analytics to help sellers understand their sales performance.
Amazon Brand Registry: Brand Registry is a program that helps entrepreneurs protect their intellectual property and brand identity on Amazon. It provides tools for managing product listings, enforcing trademarks, and detecting and reporting counterfeit products.
Amazon Launchpad: Launchpad is a program that helps startups and emerging brands launch and market their products on Amazon. It provides access to marketing support, customized product pages, and targeted promotions.

Overall, Amazon provides a range of tools and services to help entrepreneurs streamline their day-to-day operations, reach a wider audience, and grow their businesses on the Amazon platform.

3. WHAT IS ADVANTAGES AND DISADVANTAGES OF AMAZON?

ADVANTAGES

RAPID GROWTH OF INVENTORY: With Amazon, we can quickly experiment with new goods and add whatever we want to your inventory (with a few exceptions “restricted” product categories). If the merchandise is dispersed throughout unrelated types, customers will not notice. All they want is high-quality goods at affordable pricing.
AFFORDABLE PRICES: You may quickly adjust your prices using your Amazon inventory and appropriate technologies, such as an efficient repricing system. As a product gains in popularity or as there is less competition, you can raise the price. If sales of a new inventory item fall short of expectations or if 10 other retailers start carrying the same products, you can lower prices.
REDUCE OVERHEAD: You can unload many of them to Amazon with an Amazon business, frequently for a much lower price. You can pay Amazon to pick and ship the items as they arrive.

DISADVANTAGES

A GROWTH IN RETURNS: Once you use FBA to fulfil your orders, expect higher return rates because customers can return orders directly to Amazon, even without your approval. This situation would be additional costs for sellers and higher rates of damaged and lost inventory that they cannot resell anymore.
NO CHANCE FOR BRANDING: Many consumers are familiar with the Amazon brand and connect it to a dependable
online purchasing experience. As a result, buyers might not be fully aware of whose brand sold the goods they purchased, which can be detrimental for businesses striving to establish strong brand identities.
NO DIRECT CUSTOMER RELATIONSHIP: Once your products have been placed in an Amazon warehouse, they will handle everything from packing through customer service. This configuration makes it impossible for third-party vendors to communicate with their clients directly. Apart than the evaluations they leave on your listing, you are not permitted to request feedback.

4. YOUR REVIEW OF AMAZON
Amazon is a top-notch app these days, in my opinion. Homes can purchase the goods they require and want with the aid of Amazon. Also, Amazon has a range of goods and deals that are appropriate for people of all ages. While Amazon does have some drawbacks, all of them are also addressed in its remedies. Many customers use Amazon to purchase products online. Costs are reduced in terms of time, money, and other factors. The rates that Amazon has to offer are also fair and suitable for thegoods that are being bought.

REFERENCES

YOUTUBE LINK

https://youtu.be/oqYk72FZmso

Puteri Allysa Safiah Megat Mohd Rosdeen

One Response

Noru Razak says:

March 13, 2023 at 9:35 am

The article provides a good overview of Amazon’s history, services, and advantages for entrepreneurs. It also mentions some of the drawbacks associated with using Amazon’s services.

The article is well-organized and easy to read. The advantages and disadvantages of using Amazon are clearly presented. The text provides useful information for entrepreneurs who are considering using Amazon to sell their products.

However, the article could be improved by providing more details about Amazon’s services and how they work. For example, the article briefly mentions Amazon’s advertising platform and its use of machine learning, but it does not provide much detail about how these features work or how they can benefit sellers.

Overall, the article provides a good introduction to Amazon’s services and is helpful for entrepreneurs who are considering using Amazon as a platform to sell their products.

Reply

Noru Razak