AMAZON BUSINESS MODEL CANVAS

 

   

The Amazon Business Model Canvas (BMC) is a strategic planning tool that can be used to visualize, challenge, and optimize business models. The BMC is comprised of nine key elements that work together to create a complete picture of a company's business model. These elements are:

1. Customer Segments:         Who are your customers? How are they segmented?

2. Value Propositions:             What value do you offer to your customers?

3. Channels:                             How do you reach your customer segments?

4. Customer Relationships:         What kind of relationship do you have with your customers?

5. Revenue Streams:                 How do you generate revenue?

6. Key Resources:                     What resources are required to deliver your value propositions?

7. Key Activities:                     What activities are required to deliver your value propositions?

8. Key Partnerships:                 What partnerships are required to deliver your value propositions?

9. Cost Structure:                         Mention your cost.

Introduce the Amazon Business Model canvas and discuss its benefits.

If you're looking to start and grow an ecommerce business, the Amazon business model is a great place to start. The Amazon business model canvas is a tool that can help you map out your business plan and track your progress.

The Amazon business model canvas is a visual representation of the key components of the Amazon business model. It's a great tool for entrepreneurs to use to map out their business plans and track their progress.

The Amazon business model has four key components:

1. Customer Segments:         Amazon has a wide range of customer segments, including individual consumers, small businesses, and large enterprises.

2. Value Propositions;         Amazon offers a wide range of value propositions, including convenience, selection, and low prices.

3. Channels:         Amazon sells its products and services through a variety of channels, including its website, physical stores, third-party websites, and mobile apps.

4. Customer Relationships:     Amazon builds strong relationships with its buyers and sellers.

 Describe the different components of the Amazon Business Model and how they work together.

There are three primary components to the Amazon B2B integration architecture:

1. The Amazon B2B connector: This is a piece of software that sits on top of your existing ERP system and facilitates the exchange of data between Amazon and your ERP.

2. The Amazon B2B gateway: This is a cloud-based service that provides the infrastructure for exchanging data between Amazon and your ERP system.

3. The Amazon B2B marketplace: This is a marketplace where businesses can buy and sell products and services from each other. Amazon provides the platform and the infrastructure for this marketplace.

  Amazon can be profitable and how it attracts customers

                

There are many ways for Amazon to be profitable. One way is through its marketplace. Amazon Marketplace is a platform that allows third-party sellers to sell products on Amazon. Amazon takes a commission from each sale, and the commission varies depending on the product category. For example, Amazon charges a 15% commission for electronics, and a 8% commission for books. Amazon also makes money from its Prime membership program. Prime members pay an annual fee of $99, and receive free two-day shipping on many items, as well as access to Prime Video and Prime Music. Amazon also has a cloud computing business, Amazon Web Services (AWS), which is a major source of revenue. AWS provides cloud computing services to businesses and individuals. Amazon also makes money from advertising. Businesses can pay to have their products advertised on Amazon, and Amazon also has a program called Amazon Advertising Platform (AAP), which allows businesses to advertise on Amazon and other websites.

 Discuss the competitive landscape and how Amazon is trying to stay ahead of the curve.

The competitive landscape for online retail is constantly changing and Amazon is always at the forefront. Amazon has a number of advantages over its competitors, including its vast selection of products, low prices, and convenient shipping options. However, there are a number of other online retailers that are also competing for market share.

Some of Amazon's main competitors include eBay, Wall mart, and Target. These retailers also offer a wide variety of products at competitive prices. However, they cannot match Amazon's selection or shipping options. Amazon also has a number of smaller competitors, such as Overstock and Newegg. These retailers specialize in specific product categories and often offer better prices than Amazon.

Despite the competition, Amazon continues to be the dominant player in the online retail market. In the first quarter of 2018, Amazon's sales were nearly three times that of its next closest competitor, Wall mart. Amazon also holds a commanding lead in the e-commerce market, with a market share of nearly 50%.

 Offer recommendations for how businesses can replicate the Amazon Business Model.

If your business is like most, you're always looking for ways to improve efficiency and increase profits. One way to do this is to replicate successful offers from other businesses.

1. Use social media to your advantage.

Social media is a great way to see what offers are working for other businesses. Simply search for keywords related to your industry and see what comes up.

2. Ask your customers what they want.

Your customers are a valuable resource when it comes to finding successful offers. Ask them what types of deals they would be interested in and see what they come up with.

3. Take a look at your competition.

See what offers your competition is running and try to replicate them. Chances are, if they're running a certain offer, it's because it's working for them.

4. Use online resources.   

You can use different social media platforms to reach maximum number of customers like 

; Face book

; Insta gram

; Whatsapp

; You tube 

;Blogs

There are so many other social media channels can be used for promotion of your business.

Tips for selling online successfully.

If you want to sell products and build an online business, Amazon provides tools and reach to help you launch and grow online sales.

Entrepreneurs and businesses of all sizes thrive on Amazon. More than 300 million customers shop in Amazon’s store, and every day, customers browse, purchase, and review products sold by third-party sellers right alongside products sold by Amazon.

1. Figure out what you want to sell.

 What products will sell best online? What niches could be most profitable for you? To determine what                 online business ideas are right for you, explore your interests and zero in on your strengths.

  For inspiration, consult this list of business ideas. You’ll hear from over 40 entrepreneurs who’ve found             success across different niches.

2. Choose The Right Channel.

What are you trying to sell? Who are you trying to reach? Whether it’s collectible art or vintage purple leather pants, consider the amount of products you’re selling. This, in turn, will influence what type of sales channel will work best for you. If you’re cleaning out your house, then a website where you can list multiple items in one go might be your best bet. If you’re building a business, you’ll want access to analytics, customer reviews, and a large number of customers.

3. Check Listing And Selling Fees.

The cost to sell online will vary with different sales channels. Be sure to pay close attention to fees and other charges as you decide on options for your business.

Some stores will charge a small fee to list products, while others offer free listings. Here’s a quick breakdown of the different fees you’ll come across:

• Listing fee: typically, a flat fee to list on the site, either per item or a monthly charge
• Selling fee: a percentage of the selling price (may include shipping and handling)
• Payment processing fees: sometimes charged if you accept credit cards

Fees can add up. If avoiding fees is your top priority, then a plan that charges you fees at the end of the sale (like the Amazon Individual plan) can help you cut costs. 

        4.          Decide how you will handle shipping.

            Shipping time can make or break a sale. 

      .     Free delivery is the most important factor for 83% of shoppers when ordering online

• More than half (54%) have abandoned online shopping baskets because of delivery costs

Consider how much it will cost to ship an item and how far you are willing to ship it. Some sellers are happy to ship products internationally and will benefit from stores like Amazon with a worldwide customer base. Other sellers prefer to deal locally and only allow orders to be picked up or dropped off within a small radius.

Some stores may have a shipping and processing time expectation if you are going to ship items, while others will ship products for you. This can eat into your profit but may also save you time and hassle.

How shipping works on Amazon.

When a customer buys a product, either Amazon can ship the order for the seller with Fulfillment by Amazon (FBA), or the seller can fulfill their own order. Many Amazon sellers use a mix of the two.

Amazon Prime shipping

Many Amazon customers look for products with the Prime badge because it indicates fast, free shipping. Using FBA to ship products is the easiest way for sellers to get the Prime badge for most offers.

Fulfillment by Amazon (FBA)

When sellers sign up to sell in Amazon stores, they’re automatically enrolled in FBA. If they decide to participate, they send inventory to Amazon fulfillment centers, and Amazon handles shipping, customer service, refunds, and returns for those products.

5.Take good photos

Good visuals help customers see the product in detail before they buy. To create excellent visuals for products:

• Take photos in a well-lit area
• Choose a plain background
• Avoid photo filters
• Include multiple photos showing different angles of each product
• Avoid picturing other products not included in the order

Where possible, add a video of the product to help customers visualize the product. Great photos and videos are some of the best ways you can increase sales and reduce returns.

Most stores have specifications available for product photography, including Amazon.

6.

Be descriptive.

Be honest about the product’s condition and include proper keywords to help products show up in search results for customers looking for similar items.

On Amazon, you can list a snippet at the top of the product listing page, and add more info below. Use all the available spaces to maximize the product’s chances of selling.

7.

Research the right selling price.

One convenient way to compare and set prices is with the Amazon Seller app, where you can get product-level pricing and view competitor prices all in one place. 

8.

Package items with care.

Use the right packaging materials to protect items from damage in transit and include proper postage. Sometimes a thoughtful touch like a small sticker or handwritten note can go a long way to earn repeat business.

9.

Focus on delighting customers.

The golden rule of selling online? Take a customer-centric approach.

Start with the customer and work backward. What types of customers are you trying to attract? Are you looking to cater specialty items to a community of enthusiasts? Or do you want to attract a variety of customers and have the widest reach possible?

Pay close attention to customer reviews.

Customer reviews can help you—or hurt you. Reviewers are candid, and many buyers read reviews before deciding to purchase: 

Look at answering questions as an opportunity to build rapport with a potential buyer. While it’s OK to take a few hours or a day to respond, don’t let requests sit unanswered in your inbox for weeks. Also, be sure to familiarize yourself with the right way and wrong way to get product reviews and avoid policy violations.

Reward repeat customers.

Do you get orders from the same customers month after month? Help them feel appreciated with a simple note by offering a small discount or adding a bonus gift to their order. This will encourage them to keep coming back.

My Personal Views.

First of all you you will have to ask yourself few important questions. Are you committed to your job. Do you have abilities of consistancy, devotion, determination and dedication. So many people start Amazon business without knowledge and study. When they don't earn as they expect, they get panic and lost their money. Be ready before stating business on Amazon you must understand Amazon Business Model Canvas.