AIM: The aim of the practical is to make the students understand the issues that might occur with E-Commerce website owners. The students should be asked to make an in-depth study of the case given below and answer the questions based on the contents of the case.
In 1994, a 29-year-old financial analyst and fund manager named Jeff Bezos became intrigued by the rapid growth of the Internet. Looking for a way to capitalize on this hot new marketing tool, he made a list of 20 products that might sell well on the Internet. After some intense analysis, he determined that books were at the top of that list. Although Bezos liked the name Abracadabra,he decided to call his online bookshop Amazon.com. Today, Amazon.com has
more than 40 million customers and sells billions of dollars worth of all types of merchandise.
When he started, Bezos had no experience in the book-selling business, but he realized that books had an ideal shipping profile for online sales. He believed that many customers would be willing to buy books without inspecting them in person and that books could be impulse purchase items if properly promoted on a Web site. By accepting orders on its Web site, Bezos believed that
Amazon.com could reduce transaction costs in the sale to the customer.
Amazon.com could reduce transaction costs in the sale to the customer.
