Amazon.com: the World's Largest E-Commerce Services Provider?
Topic Business-to-Business (B2B) Marketing
Key Words B-to-B
InfoTrac Reference A106862007
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News Story 

Amazon.com, known to most as a consumer market retailer, is launching a new subsidiary-Amazon Services-aimed at providing other businesses with online store solutions. When Amazon first launched its Internet site, being a provider of online business services to other companies wasn't in the plan. However, in recent years the company's marketing towards retail partners has increased, opening up new opportunities in the business-to-business marketplace.

The concept behind Amazon Services is not entirely new for Amazon.com; the merchant has operated Web stores for retailers such as Target, Borders, Office Depot and Toys "R" Us for several years. In those cases, Amazon.com uses its own Web infrastructure technology and fulfillment capabilities to provide its partners with a comprehensive online retail solution in return for a percentage of every customer purchase. But what is new to Amazon.com is the formation of a whole new unit devoted to the non-retail facet of the company's business. The move is indicative of the online merchant's success as a business-to-business service provider, and signals increased concentration on this side of the business in the future.

Questions
1.

Over the years Amazon has primarily focused on sales to individual retail consumers. How might Amazon's new decision to offer business-to-business services benefit the company?

Source Dan Scheraga, "Partnerships pay off: Amazon.com devotes a new unit to its B2B business," Chain Store Age, August 2003, v79 i8 p94(1).
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