© 1999, Chuck Ehrlich all rights reserved
1
Retail Success Factors
Amazon.com examples
Chuck Ehrlich
© 1999, Chuck Ehrlich all rights reserved
2
Internet Retail
New ballgame
Different rules
© 1999, Chuck Ehrlich all rights reserved
3
Amazon.com
Combining multiple factors to
What factors or activities define Amazon’s business ?
Convenience &
Ease of use
Large Customer Database Brand Share of Mind Low Price Large Selection High Customer Service High Advertising Cross Marketing Co-Branding Less real estate Low inventory Less Employees No hassle return Superior service reps E-mail confirm Always open Always there Publisher Relations Wholesale relations Unlimited virtual shelfspace Easy Search Add useful information Customize Innovative Technology Washington State 1st mover Cost Structure Low Overhead
What factors or activities define Amazon’s business ?
Low Price Convenience
&
Ease of use
Large Customer Database Cost Structure Brand Share of Mind Large Selection High Customer Service Customize Customer Loyalty Low Overhead
© 1999, Chuck Ehrlich all rights reserved
6
High Performance Service
Web site is fast, reliable, and easy to
use
Shipping is prompt
© 1999, Chuck Ehrlich all rights reserved
7
Branding
Short, clever name/URL/tag line
Good: Amazon.com worlds largest
bookstore
© 1999, Chuck Ehrlich all rights reserved
8
Networking
Referral program
© 1999, Chuck Ehrlich all rights reserved
9
Community
Posting customer reviews with
author reviews
Customer gifts
bookmarks, note pads, cups, etc.
Promotion where customers
© 1999, Chuck Ehrlich all rights reserved
10
Personalization
Extensive customer profiles
Recommendations
Other readers who bought this title
also bought
Other readers who bought this
© 1999, Chuck Ehrlich all rights reserved
11
Trust
Guarantees
Return policy
© 1999, Chuck Ehrlich all rights reserved
12
Extended Service
Extensive subject index
Search
Ability to order before publication
© 1999, Chuck Ehrlich all rights reserved
13
Logistics
Fast, reliable, inexpensive shipping
Price differences between Amazon and Barnes&Noble
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
