E commerce and Globalization

E-Commerce and Globalization

E-Commerce at Amazon.com

There are a myriad of advantages and disadvantages of selling books and good over the internet. Some advantages to selling goods over the internet are the sheer amount of people that the internet has the ability to reach. Malls, boutiques, among other merchant stores are sometimes in centralized locations do not have the ability to reach some suburban and rural populations; thus, having an internet store does arm merchants with the ability to sell their product to the masses. Furthermore, selling books and other goods over the internet is also more cost-effective as processing orders requires a distribution center instead of having stores all over the country which require staffing and rent, among other overhead costs. Though, with all advantages come some disadvantages including some issues for the consumer. Consumers are unable to touch or see the good or product in its physical capacity which causes some disconnect for the consumers and it may lead to potential dissatisfaction with the product upon receipt.

In the age of the iPod, BlackBerry's, and other technologies that have enabled people to get information at the tips of their fingertips, Amazon has done an excellent job of changing with the marketplace. As things like books and movies are able to be downloaded almost instantly from the Internet, the demand to purchase a hardcover book or a DVD has decreased. Jeff Bezos's, CEO of Amazon, developed "the Kindle, an electronic reader that some analysts have called the next iPod" (Machan, 2008). The business model of buying books from the site has definitely changed in light of the fact that books can be downloaded and by developing a product where books can be instantly downloaded via the website, puts Amazon in as a front runner in the technology evolution. By constantly being on par with the changes, it allows Amazon to maintain its niche as a "go-to" website to download books and movies via their own product. In light of books of being instantly downloaded, Amazon has changed its business and adapted to the constantly evolving technological and social dynamic that has been created.