E COMMERCE @ AMAZON OPM 5 Essay Example | Topics and Well Written Essays - 500 words

E COMMERCE @ AMAZON OPM 5 - Essay Example No geographical boundaries limit online transactions. Huge market penetration allows companies to gain popularity overnight without much cost. Another huge advantage that e-commerce has to offer is they can effectively evaluate the response to a particular campaign online with the help of tools like frequent visitors etc. Like any other business, online selling has its set of disadvantages. The biggest disadvantage is the lack of direct contact between the sales force and the customers. All the transactions take place online, limiting contact. Another disadvantage is the security issues that are rising in this medium of selling. With fraudulent activities on the rise, companies selling online now have to take expensive measures to protect the important credentials of their customers such as credit card numbers etc. These measures cannot be taken by small businesses limited on budgets and spending. Another important issue is the delivery of goods over the whole world. This problem however, has been counteracted by Amazon who now has alliances with different companies to deliver goods to various places all over the world. Also, perishable items have to be delivered on time, which requires exceptionally quick service. This problem has also been covered by Amazon as it is test marketing its service of de livering goods overnight in certain suburbs of Seattle. Books are one of the best selling products on Amazon.com. Many books are now available in formats which are downloadable. However, this phenomenon is not very popular. If online downloading of books start, Amazon will be faced by a downfall in sales and share price to a certain extent as one of their main products will not be available online. However, they can venture into this market of downloadable book purchase as well, to make up for the loss on their other sector. In short, Amazon has all the resources to venture into the market of downloadable books as well; they can take full