provides portability and a relatively low product cost;h It provides an easy transition from the existing mail-order concept;h It is cost-effective as it cuts down on overhead costs by eliminating inventories;h It results in quicker delivery time due to the faster distribution cycle of products being shipped directly from the wholesalers.Amazons idea of selling books online on such a grand scale, though, has brought online retailing to a new level. Following is a look at Amazons online retail process and how information systems played a role in the overall process.The main difference between traditional booksellers and online booksellers is that the online retailer does not have a physical presence. All interactions with the customer occur on the Internet, which is why customer focus is so critical. Amazon holds the upper hand in that they have greater brand recognition and customer focus than their competitors. Amazon has been a customer-centric company since its inception and has devoted their efforts to ascertaining what the customer wants and has worked hard to fulfill the customers expectations. One example of Amazons customer focus is their excellent use of email communication with the customer before and after the customers purchase. Jeff Bezos, Founder and CEO of Amazon.com stated Weve gotten more feedback in the past four years than most traditional companies have in 40 years. We use it to improve our services. One simple V and very effective V thing we do is to email a question to 3,000 randomly selected customers. Email in general in a very useful feedback mechanism2. In addition, they maintain a comprehensive database of their customers preferences, study this information, and then use it to provide one-click shopping, tailored recommendations and new book notifications. Another tool that Amazon uses to establish relationships with its customers is virtual communities whereby providing a platform for members to share their e...
