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Type Founded Founder Area served Industry Revenue Operating income Net income Employees Slogan Website Type of site Advertising Available in Public (NASDAQ: AMZN) 1994 Jeffrey P. Bezos Worldwide Retail ▲ US$ 14.8350 Billion (2007) ▲ US$ 655 Million (2007) ▲ US$ 476 Million (2007) 17,000 (2008) "...and you're done" Amazon.com e-commerce web banners and videos English, Chinese, French, German & Japanese

Amazon.com, Inc. (NASDAQ: AMZN) is an American electronic commerce (ecommerce) company in Seattle, Washington. It is America's largest online retailer, with nearly three times the internet sales revenue of runner up Staples, Inc. Jeff Bezos founded Amazon.com, Inc. in 1994, and launched it online in 1995. Amazon.com started as an on-line bookstore, but soon diversified to product lines of VHS, DVD, music CDs, MP3 format, computer software, video games, electronics, apparel, furniture, food, toys, etc. Amazon has established separate websites in Canada, the United Kingdom, Germany, France, China and Japan. It also provides global shipping to certain countries for some of its products. At the end of 1999, Amazon had raked in over a billion dollars in sales. It seemed as though the profit would never cease. However, in 2001, Amazon reported a fiscal loss of $1.4 billion, and had laid off over 200 workers in the last year. The beginning of 2001 found Amazon laying off even more workers, totaling over 1000. Instead of giving up, Bezos had an idea: recruit other companies to sell their products online through Amazon as well. The idea worked. Companies such as Target, Toys R Us, Old Navy, and many others have agreed to sell their items through Amazon. Although Amazon is not directly responsible for inventory through these companies, they do get part of the sales, creating a profit for all involved. Since the inception of the idea, Amazon is now backing on its feet and remains one of the most popular online vendors in the world today.

Amazon Website
The domain amazon.com attracted at least 615 million visitors annually by 2008 according to a Compete.com survey. This was twice the numbers of walmart.com. A popular feature of Amazon is the ability for users to submit reviews to the web page of each product. As part of their review, users must rate the product on a rating scale from one to five stars. Such rating scales provide a basic idea of the popularity and dependability of a product. The review feature is an influential function for customers and one of the main reasons for amazon.com's success at selling books. Under normal circumstances, reviews give the reader at least a modest basis for evaluating a given book. Because it is an open forum, the reader can benefit from a variety of perspectives. However, the anonymity of web reviewers increases the chances of abuse in the form of self-praise, praise from friends, or malicious criticism. This situation was confirmed in 2004 when the origin of reviews was accidentally made public on an Amazon site, and some authors openly confirmed their glowing reviews of their own books. Additionally, Amazon created a feature in recent years that allowed users to comment on reviews. This has been met with a mixed reaction, since a few of the high-profile sellers have been getting "spammed" in these forums, regardless of the quality of the reviews. Amazon has done little to enforce the rules of these forums, but did recently add an "ignore" button feature to help counteract the spamming. Nonetheless, at least one critic in the top 50 quit writing for Amazon and began contributing to another site due to the spam issues and Amazon's inability to enforce the rules. In October of 2008 Amazon introduced a additional ranking scale for reviewers. Amazon provides an optional badging option for reviewers, e.g., to indicate the "real name" of the reviewer (based on a credit card) or to indicate that the reviewer is one of the "top" (most popular) reviewers. The U.S. site generally has the most reviews, but other country sites offer the perspectives of other reviewers. A review posted on one site is not necessarily visible on another site. Search Inside the Book is a feature which allows customers to search for keywords in the full text of many books in the catalog. The feature started with 120,000 titles (or 33 million pages of text) on October 23, 2003. There are currently about 250,000 books in the program. Amazon has cooperated with around 130 publishers to allow users to perform these searches. To avoid copyright violations, Amazon.com does not return the computer-readable text of the book but rather a picture of the matching page, disables printing, and puts limits on the number of pages in a book a single user can access. One author observed that his

entire book could be read online by searching a few words. Additionally, customers can purchase access to the entire book online via the Amazon Upgrade program, although the selection of books eligible for this service is currently limited. According to information in Amazon.com discussion forums, Amazon derives about 40% of its sales from affiliates whom they call "Associates", and third party sellers who list and sell products on the Amazon website(s). An Associate is an independent seller or business that receives a commission for referring customers to the Amazon.com site. Associates do this by placing links on their websites to the Amazon homepage or to specific products. If a referral results in a sale, the Associate receives a commission from Amazon. Worldwide, Amazon has "over 900,000 members" in its affiliate programs. Associates can access the Amazon catalog directly on their websites by using the Amazon Web Services (AWS) XML service. Amazon was one of the first online businesses to set up an affiliate marketing program. AStore is a new affiliate product that allows Associates to embed a subset of Amazon products within, or linked to from, another website. Amazon reported over 1.3 million sellers sold products through Amazon's worldwide web sites in 2007. Selling on Amazon has become more popular as Amazon expanded into a variety of categories beyond media, and built a variety of features to support volume selling. Unlike eBay/Paypal, Amazon sellers do not have to maintain separate payment accounts - all payments and payment security are handled by Amazon itself. According to the Internet audience measurement website Compete.com, Amazon attracts approximately 50 million U.S. consumers to its website on a monthly basis.

Slogan of the amazon.com
"...and you're done"

Advertising
Amazon does its advertising through web banners and videos

Target market
Amazon is an electronic commerce retail type website which is accessible from all over the world and every potential buyer who has internet facility is the customer of amazon.com.

How Amazon works
Amazon.com is working as the purchasing, selling, and exchanging of goods and services over computer networks (such as the Internet) through which transactions or terms of sale are performed electronically. Amazon.com sells lots and lots of stuff. The direct Amazon-to-buyer sales approach is really no different from what happens at most other large, online retailers except for its range of products. You can find beauty supplies, clothing, jewelry, gourmet food, sporting goods, pet supplies, books, CDs, DVDs, computers, furniture, toys, garden supplies, bedding and almost anything else you might want to buy. Besides its tremendous product range, Amazon makes every possible attempt to customize the buyer experience. When you arrive at the homepage, you'll find not only special offers and featured products, but if you've been to Amazon.com before, you'll also find some recommendations just for you. Amazon knows you by name and tries to be your personal shopper. The other main feature that puts Amazon.com on another level is the multi-leveled ecommerce strategy it employs. Amazon.com lets almost anyone sell almost anything using its platform. You can find straight sales of merchandise sold directly by Amazon, like the books it sold back in the mid-'90s out of Jeff Bozos' garage -- only now they're shipped from a very big warehouse. Since 2000, you can also find goods listed by thirdparty sellers -- individuals, small companies and retailers like Target and Toys 'R Us. You can find used goods, refurbished goods and auctions. You could say that Amazon is simply the ultimate hub for selling merchandise on the Web, except that the company has recently added a more extroverted angle to its strategy.

Products and services
Amazon.com has incorporated a number of products and services into its shopping model, either through development or acquisition. 2001 Honor System and donations The Honor System was originally launched in 2001 to allow customers to make donations or buy digital content, with Amazon collecting 2.9 percent of the payment plus a flat fee of $0.30 USD. 2002 Web Services Amazon launched Amazon Web Services (AWS) in 2002. The service provides programmatic access to many features leveraged behind the scenes on its website. 2004 Amazon also created "channels" to benefit certain causes. In 2004, Amazon's "Presidential Candidates" allowed customers to donate US$5-200 to the campaigns of 2004 U.S. presidential hopefuls. Amazon has periodically reactivated a Red Cross

donation channel after such tragedies as 9/11 and Hurricane Katrina. After the 2004 earthquake and tsunami in the Indian Ocean, Amazon set up an online donation channel to the American Red Cross, waiving its processing fee. By January 2005, nearly 200,000 individuals had donated over US$15.7 million in the US alone. 2005 Prime Amazon Prime offers customers unlimited expedited shipping with no minimum purchase amount for a flat annual fee. The service also offers discounted priority shipping rates. Amazon launched the program in the continental United States in 2005, in Japan in June 2007, in the United Kingdom and Germany in November 2007, and in France (as "Amazon Premium") in October 2008. Shorts Launched in 2005, Amazon Shorts offers exclusive short form content, including short stories and non-fiction pieces from best-selling authors, all available for immediate download at US$.49. As of June 2007, the program has over 1,700 pieces and is adding about 50 new pieces per week. Mechanical Turk In November 2005, Amazon.com began testing Amazon Mechanical Turk, an application programming interface (API) allowing programs to dispatch tasks to human processors. 2006 S3 In March 2006, Amazon launched an online storage service called Amazon Simple Storage Service (Amazon S3). An unlimited number of data objects, from 1 byte to 5 gigabytes in size, can be stored in S3 and distributed via HTTP or BitTorrent. The service charges monthly fees for data stored and for data transferred. SQS In April 2006, Amazon introduced Amazon Simple Queue Service (Amazon SQS), a distributed queue messaging service. Discussion boards In August 2006, Amazon launched product wikis (later folded into Amapedia) and discussion forums for certain products using guidelines that follow standard message board conventions. EC2 In August 2006, Amazon introduced Amazon Elastic Compute Cloud (Amazon EC2), a virtual site farm, allowing users to use the Amazon infrastructure with its high reliability to run diverse applications ranging from running simulations to web hosting. In 2008, Amazon improved the service adding Elastic Block Store (EBS), offering persistent storage for Amazon EC2 instances and Elastic IP addresses, static IP addresses designed for dynamic cloud computing. 2007 Amapedia In January 2007 Amazon launched Amapedia, a collaborative wiki for usergenerated content to replace ProductWiki.

Unbox In March 2007, Amazon launched an online video on demand service. MP3 downloads In September 2007, Amazon launched a new music store (currently in beta) called Amazon MP3, which sells downloadable tracks, all in the MP3 format and most recorded at 256 kilobits per second variable bitrate (VBR). Amazon's terms of use agreements legally restrict use of the music, but Amazon does not use DRM to enforce those terms. Amazon MP3 is selling music from the Big 4 record labels, EMI, Universal, Warner Bros. Records, and Sony BMG, as well as many independents. Previous to the launch of this service, Amazon made an investment in Amie Street, a similar music store with a variable pricing model based on demand. Vine In August 2007 Amazon launched Amazon Vine, which allows top product reviewers free access to pre-release products from vendors participating in the program. Reviewers may either return the used product to Amazon, or post a review and keep the product, within a few months of receipt. FPS In August 2007 Amazon launched a payment service specifically targeted at developers. Amazon FPS has facilities for developing many different charging models including micro-payments. The service also gives developers easy access to Amazon customers. Kindle In November 2007, Amazon launched Amazon Kindle, an e-book reader which downloads content over "Whispernet", a free EV-DO wireless service on the Sprint Nextel network. The screen uses E Ink technology to reduce battery consumption. In 2008 Amazon claimed its library had grown to 200,000 titles. SimpleDB In December 2007, Amazon introduced SimpleDB, a database system, allowing users of its other infrastructure to utilize a high reliability high performance database system. AmazonFresh In August 2007, Amazon launched an invitation-only beta-test for online grocery orderies to be delivered to your door. It has since rolled out in several Seattle, Washington suburbs. 2008 Amazon MP3 In January 2008 Amazon announced they would be rolling out their Amazon MP3 service to their subsidiary websites worldwide throughout the year. On December 1, 2008, Amazon MP3 was made available in the UK. Undated Connect Amazon Connect enables authors to post remarks on their book pages and to customers who have bought their books. WebStore

WebStore by Amazon allows businesses to create e-commerce websites using Amazon technology. Merchants can customize their sites using their own photos and branding. Sellers pay a commission of 7 percent, which includes credit-card processing fees and fraud protection, and a subscription fee of $59.95/month for an unlimited number of webstores and listings.

Review and recommendation feature
Amazon.com's customer reviews are monitored for all negative or indecent comments that are directed at anything, or anyone, but the product itself. In regards to the reviews lacking relative restrictions, Robert Spector who is the author of the book Amazon.com, describes how "when publishers and authors asked Bezos why Amazon.com would publish negative reviews, he defended the practice by claiming that Amazon.com was ‘taking a different approach...we want to make every book available – the good, the bad, and the ugly...to let truth loose’"

Amazon Associate
This is a referral fee program that you can participate in using your Web site. You'd probably provide a link to Amazon from your Web site for the convenience of your customers anyway, so you may as well make a referral fee, and recoup some of that 55 percent discount by becoming an Amazon Associate. Although rates change from time to time and from product to product, 5 percent is a fairly usual commission. Once you set up the links, there's nothing to do but make money while people click through from your site. Granted, this may not be a very big moneymaker, but the more traffic you have on your site, the better the referral fees are likely to be. You can even make money on the competition's books. Some people like to buy several books on the same subject, and if they're going to buy your competition's books anyway, you might as well make some money too. Amazon's reports will show you an itemized list of fees, so you can see what sells best. Amazon doesn't want you to make your own personal purchases through your site, so try to set up a buddy system with another Amazon Associate. Make your personal purchases on each other's sites so that the referral fees aren't lost.

Headquarters

Amazon.com's headquarters in PacMed building (Beacon Hill, Seattle)

The company's global headquarters is located on Seattle's Beacon Hill. It has offices throughout other parts of greater Seattle including Union Station and The Columbia Center. Amazon has announced plans to move its headquarters to the South Lake Union neighborhood of Seattle beginning in mid-2010, with full occupancy by 2011. This move will consolidate all Seattle employees onto the new 11-building campus.

Fulfillment and warehousing
Fulfillment centers are located in the following cities, often near airports: Amazon provides its customers with the easy facility of online purchasing and payment system and it has several warehouses in the different locations from where amazon.com fulfills the orders of its value customers.



North America:
        

Arizona, USA: Phoenix Delaware, USA: New Castle Indiana, USA: Whitestown, Munster Kansas, USA: Coffeyville Kentucky, USA: Campbellsville, Hebron (near CVG), Lexington, and Louisville Nevada, USA: Fernley and Red Rock (near 4SD) Pennsylvania, USA: Carlisle, Chambersburg, Hazleton, and Lewisberry Texas, USA: Dallas/Fort Worth Ontario, Canada: Mississauga (a Canada Post facility)



Europe:

Amazon.co.uk warehouse, Glenrothes
   

Munster, Ireland: Cork Bedfordshire, England, UK: Marston Gate Inverclyde, Scotland, UK: Gourock Fife, Scotland, UK: Glenrothes

     

Neath Port Talbot, Wales, UK: Crymlyn Burrows near Jersey Marine Loiret, France: Orléans-Boigny (2000), Loiret, France: Orléans-Saran (2007), Hesse, Germany: Bad Hersfeld Saxony, Germany: Leipzig

Asia:
   

Chiba, Japan Guangzhou, China Suzhou, China Beijing, China

Advantages of the Amazon Marketplace It's an ideal place to sell copies that are slightly defective. Sell them for a couple of dollars less and autograph them to sweeten the deal. Through those sales you can build your customer database, since you will obtain customers' names and contact information. The Marketplace gives you an opportunity to make contact with a customer. Include an order form and business card with each shipment, noting that you'd love to hear from them after they've read the book. Invite them to visit your Web site. You can ask your satisfied customers to write an Amazon review, and then you can add the reviews to your Web site. You can keep the sales going when Amazon drops the ball, and encourage them to stock enough books so that the screen will display "Usually ships in 24 hours" rather than "Usually ships in 2-3 weeks," which makes every publisher cringe! Marketplace customers can give you valuable insight on what marketing techniques work best by asking them how they heard about your book. Amazon handles the credit card acceptance and approval process. It's fast and easy to list and ship books. Just follow the instructions on your book's page, over to the right under "Sell Yours Here." When your book is sold, Amazon will send you an e-mail with a section containing the customer's packing slip, which you can print out.

Amazon.com Balance Sheet:

Assets

Quarter Ending Sep 08

Quarter Ending Jun 08

Quarter Ending Mar 08

Quarter Ending Dec 07

Quarter Ending Sep 07

Current Assets
Cash Net Receivables Inventories Other Current Assets Total Current Assets Net Fixed Assets Other Non current Assets 2,324.0 791.0 1,315.0 -4,430.0 731.0 1,405.0 2,380.0 749.0 1,107.0 -4,236.0 651.0 1,435.0 2,151.0 737.0 1,077.0 -3,965.0 594.0 1,324.0 3,112.0 852.0 1,200.0 -5,164.0 543.0 778.0 1,909.0 545.0 970.0 -3,424.0 491.0 703.0

Total Assets

6,566.0

6,322.0

5,883.0

6,485.0

4,618.0

Liabilities and Shareholder's Equity

Quarter Ending Sep 08

Quarter Ending Jun 08

Quarter Ending Mar 08

Quarter Ending Dec 07

Quarter Ending Sep 07

Current Liabilities
Accounts Payable Short-Term Debt Other Current Liabilities Total Current Liabilities Long-Term Debt Other Non current Liabilities
2,728.0 42.0 374.0 3,144.0 393.0 502.0 2,775.0 441.0 -3,216.0 433.0 443.0 2,645.0 906.0 -3,551.0 467.0 395.0 3,714.0 --3,714.0 1,282.0 292.0 2,319.0 --2,319.0 1,273.0 265.0

Total Liabilities

4,039.0

4,092.0

4,413.0

5,288.0

3,857.0

Shareholder's Equity
Preferred Stock Equity Common Stock Equity Total Equity Shares Outstanding (mil.)
-2,527.0 2,527.0 429.0 -2,230.0 2,230.0 426.0 -1,470.0 1,470.0 417.0 -1,197.0 1,197.0 416.0 -761.0 761.0 415.0

Total Equity
Shares Outstanding (mil.)

1,197.0
416.0

431.0
414.0

246.0
416.0

Advantages of the amazon.com
A popular feature of Amazon is the ability for users to submit reviews to the web page of each product. As part of their review, users must rate the product on a rating scale from one to five stars. Such rating scales provide a basic idea of the popularity and dependability of a product.

According to the Internet audience measurement website Compete.com, Amazon attracts approximately 50 million U.S. consumers to its website on a monthly basis. According to information in Amazon.com discussion forums, Amazon derives about 40% of its sales from affiliates whom they call "Associates” and third party sellers who list and sell products on the Amazon website(s). Customer can translate the web page in his native language like English, Chinese, French, and German & Japanese. Customer can view the webpage and can buy anything from this website easily from ever where and at any time. Customers can find reams of comparative information about companies, products, and competitors without leaving their office or home. Amazon website provides variety of products with detailed information. Every level of customer can easily use this website because of its user-friendliest.

You can also quickly change your promotional campaign, in order to gain attention that may lead the consumer to the product. They don't have to sit in traffic, find a parking space, and walk through countless aisles to find and examine goods.

Disadvantages of the amazon.com
When you locate items at local storefronts you leave the store with them but Some times delivery of the purchased product takes long time in its delivery due to some uncertain situations. Returning of the defective products is such a difficult process and some times it becomes a more expansive than the actual price of the product. We have to pay the shipping cost and delivery charges incase of online purchasing which could be expansive. By purchasing on the Internet, you also run the risk of having your information taken by online companies and misused. Online auctions do not provide buyers with an option of personally viewing and evaluating items before purchasing. This may lead to the possibility of fraud.

Final project

“www.amazon.com”

PRESENTED TO:

Mr. Amir Awan
PRESENTED BY:
Waheed Iqbal Butt (2062231) Syed Qamar Abbas (2062014) Ch. M Zubair (2073078) Ali Adnan Joiya (2073050)

NATIONAL COLLEGE OF BUSINESS ADMINISTRATION AND ECONOMICS

ACKNOWLEDGEMENT

We like to thank the following persons for their lot of help and guidance to make us able to achieve our goals.

MR. AMIR AWAN:
Firstly we would like to thank my subject teacher MR. AMIR AWAN for his guidance, his great teaching skills, make us able to understand our subject, we would like to thank for not only teaching us but also pushing us toward our goals, and he put us together and very fairly done his job which helps us a lot.

OUR PARENTS:
Secondly we would like to thanks our parents who make us able to give our full attention to studies by praying for us and taking our all problems with them through out the life.

Synopsis:
           Company Profile. Slogan of the Company. How Amazon works. Review and recommendation Features. Amazon associate. Headquarters. Fulfillment and where housing. Amazon marketplace. Advantages. Disadvantages. Balance sheet.


				
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