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Amazon is the largest supplier of many products in the world. Every day this company receives thousands of orders and delivers them to customers (Skaggs, 2017). Popularity has forced company leaders to pay attention to the quality of work. In particular, this affected the speed and convenience of delivery. Customers are now becoming more demanding, so they don’t want to wait for goods for several days (Jung, 2017). The purpose of this paper is to talk about the Amazon delivery processes and discuss their positive and negative sides.
Amazon now delivers most of the goods for free, which allows the business to grow. Free shipping is an undeniable competitive advantage. People do not want to overpay even for the convenience of delivering goods. Therefore, by spending money only on the product itself, they win. However, this benefits not only consumers but also Amazon (Moore, 2018). Thus, it attracts thousands of new customers and becomes in demand. As a result, the level of sales rises and the company’s profits rise as well. In particular, it can be spent on the company’s further development: for example, the robotization of processes, which makes delivery even more comfortable.
Despite free shipping, Amazon does not lose costs. Undoubtedly, the company does not receive additional profit for the shipment of goods, although this could contribute to even more earnings (Kingston, 2020). However, the demand for the company’s services is so high that it does not harm its well-being in any way. The demand level is so considerable that some products have to be moved to the premium category (Berg, 2019). They are not available to people without a subscription because there are not enough of them. This allows managers to regulate the level of consumption and meet the needs of priority customers. Hence, even without shipping charges, Amazon is making a significant profit margin.
Fast delivery is another way to improve Amazon customer satisfaction. In early 2020, the company accelerated this process by building several warehouses in different US cities (Huang, Savkin & Huang, 2020). Before that, delivery could take more than a day, in some areas – several days. Now, this process takes only a few hours, so customers ordering something in the morning can enjoy their purchases at lunchtime. This allows people to order more products instead of going to the store. They know they can get them quickly, so they prefer comfort.
Amazon is the world’s largest e-commerce and public cloud platform company in revenue and market cap. It was founded as an online bookstore but later diversified and started selling video, MP3, audiobooks, software, video games, electronics, clothing, furniture, food, toys, and jewelry (Rodrigue, 2020). Company executives regularly take various measures to increase profits and maintain customer satisfaction. They rely on world events and monitor changes in marketing trends. This allows the company to remain the first in the world and become an example for competitors.
References
Berg, F. (2019). Amazon. Best example of a serial business model innovator. GRIN Verlag.
Huang, H., Savkin, A. V., & Huang, C. (2020). A new parcel delivery system with drones and a public train. Journal of Intelligent & Robotic Systems, 100, 1341-1354.
Jung, S. (2017). Analysis of Amazon Prime Air UAV delivery service. Journal of Knowledge Information Technology and Systems. Web.
Kingston, W. (2020). On the banks of the Amazon. Library of Alexandria.
Moore, S. B. (2018). Amazon. ABDO.
Rodrigue, J. (2020). The distribution network of amazon and the footprint of freight digitalization. Journal on Transport Geography. Web.
Skaggs, N. (2017). The Amazon planet: The dream seers. BookRix.
Do you need this or any other assignment done for you from scratch?
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