1. Retail Success Factors Amazon.com examples
Chuck Ehrlich
© 1999, Chuck Ehrlich all rights reserved

2. © 1999, Chuck Ehrlich all rights reserved
Internet Retail
New ballgame
Different rules
Look at what’s working
© 1999, Chuck Ehrlich all rights reserved

3. © 1999, Chuck Ehrlich all rights reserved
Amazon.com
Combining multiple factors to achieve success
© 1999, Chuck Ehrlich all rights reserved

4. What factors or activities define Amazon’s business ?
Low
inventory
What factors or activities define Amazon’s business ?
Less real
estate
Unlimited
virtual
shelfspace
Wholesale
relations
Less
Employees
Large
Selection
Cross
Marketing
High
Advertising
Co-
Branding
Low
Overhead
Publisher
Relations
1st
mover
Convenience
&
Ease of use
Brand
Share of
Mind
Large Customer
Database
Cost
Structure
Superior
service
reps
Always
open
there
High
Customer
Service
Add useful
information
Easy
Search
Customize
Low
Price
Innovative
Technology
No hassle
return
confirm
Washington
State
Graphic courtesy of the Kellogg School, NWU

5. What factors or activities define Amazon’s business ?
Large
Selection
Low
Overhead
Convenience
&
Ease of use
Brand
Share of
Mind
Large Customer
Database
Cost
Structure
High
Customer
Service
Customize
Low
Price
Customer
Loyalty
Graphic courtesy of the Kellogg School, NWU

6. High Performance Service
Web site is fast, reliable, and easy to use
Shipping is prompt
Customer is kept informed
© 1999, Chuck Ehrlich all rights reserved

7. © 1999, Chuck Ehrlich all rights reserved
Branding
Short, clever name/URL/tag line
Good: Amazon.com worlds largest bookstore
Poor: Barnesandnoble.com
Poor: Cyberian Outpost
© 1999, Chuck Ehrlich all rights reserved

8. © 1999, Chuck Ehrlich all rights reserved
Networking
Referral program
Co-branding and cross promotion
© 1999, Chuck Ehrlich all rights reserved

9. © 1999, Chuck Ehrlich all rights reserved
Community
Posting customer reviews with author reviews
Customer gifts
bookmarks, note pads, cups, etc.
Promotion where customers collaborate with famous authors
© 1999, Chuck Ehrlich all rights reserved

10. © 1999, Chuck Ehrlich all rights reserved
Personalization
Extensive customer profiles
Recommendations
Other readers who bought this title also bought
Other readers who bought this author also bought
© 1999, Chuck Ehrlich all rights reserved

11. © 1999, Chuck Ehrlich all rights reserved
Trust
Guarantees
Return policy
Great customer service
© 1999, Chuck Ehrlich all rights reserved

12. © 1999, Chuck Ehrlich all rights reserved
Extended Service
Extensive subject index
Search
Ability to order before publication
Out of print search
© 1999, Chuck Ehrlich all rights reserved

13. © 1999, Chuck Ehrlich all rights reserved
Logistics
Fast, reliable, inexpensive shipping
Originally no inventory, use Ingram
© 1999, Chuck Ehrlich all rights reserved

14. Price differences between Amazon and Barnes&Noble
Source: OECD and Kellogg, NWU
Date Titles with different Total price difference on prices (125 total) 125 titles (Am-B&N)
17 Mar $
24 Mar $
5 May $
13 May 97 Barnes & Noble enters online business
10 Jun $
1 Jul $
4 Aug $