A success E-commerce and its causes

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. With 16 million items for sale, Amazon has ''Earth's biggest selection,'' says Chief Executive Jeffrey P. Bezos.

Amazon work from the customer backward, it focus on value what they want to deliver for the customer. They are assigned authority and empowered to solve a problem as a service in anyway they see fit. They also force developers to focus on on value delivered to the customer instead of building technology first and then figuring how to use it. Amazon sellers do not have to maintain separate payment accounts. All payments and payment security are handled by Amazon itself, it’s unlike eBay/ Paypal. Amazon's initial

business plan was unusual, the company did not expect a profit for four to five years, but the strategy was effective. Amazon grew steadily in the late 1990s while other Internet companies grew blindingly fast. Amazon's "slow" growth provoked stockholder complaints: that the company was not reaching profitability fast enough. When the dot com bubble burst, and many e-companies went out of business, Amazon persevered, and, finally, turned its first profit in the fourth quarter of 2002, U.S. $5 million.

Amazon is end up with a design that is as minimal as possible. Simplicity is the key when they are really want to build large distributed systems. Only way to manage as large distributed system is to keep things as simple as possible. Keep things simple by making sure there are no hidden requirements and hidden dependencies in the design. Cut technology to the minimum they need to solve the problem they have. There’s bound to be problems with anything that produces hype before real implementation. So Amazon use measurement and objective debate to separate the good from the bad. This is the aspect of Amazon that uniquely different and interesting from other companies. Their deep seated ethic is to expose real customers to a choice and see which one works best and to make decisions based on those tests.


There are top 10 traits of highly successful ECommerce companies:
1. A clear vision and goal
They know exactly what they want to achieve. This laser like focus helps form an unshakeable conviction and dedication to building a successful online business.

2. Patience and a long-term view
They constantly measure if they are gradually getting there. And they can live with the paradoxes in online retail. For example the Internet changes quickly but organic SEO is a relatively slow process. Every day, every week, every month gives feedback measured in many ways against targets.

3. Taking calculated risks
Taking necessary risk and being prepared to invest is key. Investment is the fuel of a business so choosing where to spend money is critical. Successful websites invest money in activities that generate growth or make them more efficient ideally both at the same time.

4. A commitment to Kaizenâ or continuous improvement
Winners know this and delight in every little enhancement they make. Whole redesigns are common every 6 to12 months. The search engines love it. These websites never rest on their laurels because within a few weeks someone could come along and take some of their business.

5. Successful sites employ good advisorsNo one can be expert at everything and having specialist advisors you can trust and follow (and measure results from) is essential. ECommerce does not get simpler as time goes by. Winners pay for the best advice when it comes to strategy, tactics and growing the business.

6. They make decisions quickly and change their mind slowlyIn the world of web retailing three months is a long time. Too long for inaction. In general, winners make decisions quickly then measure results and adjust accordingly. All improvements are based on measured results against documented targets even if the targets are frequently revised.

7. The consumer is King
Changes and improvements should benefit the consumer and in doing so convert more consumers into customers and existing customers into bigger and more frequent spenders. Elegant design might be satisfying but frequent and multiple site enhancements whose effectiveness shows on the bottom line is even more gratifying.

8. Successful sites embrace technology and change
There’s a million teenagers out there who want to steal your business. If they had the funding they would be doing it now. Keeping abreast of developments online is key in online marketing, news, shifts in online culture and understanding how to read basic web analytics. Being clueless to these things will eventually leave you for dead.

9. Be fair and honest with customers and suppliers
Building a well-loved and respected business is key. The real money is made over the long term through repeat sales and referrals. So by offering great customer service and being fair in all business dealings, long-term relationships can flourish with both customers and suppliers. Customers may take a long time to get but can be lost in an instant through poor customer service. Don’t be afraid to give people their money back. Even smarter sometimes is to offer it very willingly and then chat through other options.

10. There is no such thing as easy money
There’s an army of wannabes online wanting to make a million for little or no work and hoping that it is possible to make money for doing next to nothing. Successful retail website owners know that this is a myth and the Internet is like any other business. It is focus, hard work, constant improvement and if “you’re targeting and measuring right” great fun!