Channel Differentiation of Amazon Essay

369 Words2 Pages
Channel Differentiation Amazon is a well know online book shop which was founded in the year 1995. With the growth of its business and the potential of Internet, they changed from online book store to an online retail shop which sell things such as software, furniture, musical instrument and others. How Amazon is being to successful? In the year1995, book store was popular in many countries, there are different kind of books sell in these book stores. However, some books is only available in certain bookstore, and will be out of stock. Jeff Bezos found the opportunity, he then set up a virtual store called Amazon on the Internet. Amazon offered several times more titles compare to brick-and-mortal bookstores and mail-order catalogs, which provide customers more choices, and is available at anytime, anywhere as long as there is Internet connections. After changing to an online retail shop, Amazon provide detailed information about the product they sell compare to the online store, and allowed customers to pay online. The product that customer bought will be ship directly to their location in few working days. Amazon did outdoor and TV advertising, but what makes so well known is how Amazon wisely make use of Internet as their channel to sell themselves to the online user. Amazon associates themselves to many website to direct customers to Amazon. Besides that, they also used sponsored search, to increase their visibility on search. When the online user is searching for certain product and services, Amazon will have the priority to show themselves on the top few result. They also advertised through portal such as Yahoo. Since Yahoo is commonly used by the online user, Amazon increase their chance to attract more customers with the advertisement placed on Yahoo. What makes people remain to Amazon while there are many online retail shop available now? Amazon

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