The+Amazon.com+Model

The Amazon.com model truly embodies the essence of Living Widgets. From its early days as “the world’s largest bookstore,” Amazon.com offered books that it never stocked, depending on its suppliers to stock and deliver the merchandise. If a vendor can supply an item at the desired price, and stand behind the sale with full integrity, consumers don’t care who actually provides the merchandise.

You, too, can use the Amazon.com model, even if you don’t implement it on the same scale as Amazon.

Amazon’s implementation of their model can provide insights into how you might implement the model. Amazon chose one industry initially, namely books. It then expanded with several key focuses. One was technology, a field in which it was highly respected. Another was toys, collaborating with Toys “R” Us, the leader in toys. Amazon understood the power of iconic brands, fully using the leadership position of Toys “R” Us, and branding itself as “the world’s largest bookstore,” and giving customers a chance to see it evolve into “the world’s largest store.”

Consistent with its model of using a broad-based, diversified team of suppliers, Amazon quickly focused on a broad base of diversified sales teams, providing widgets for web sites and a friendly affiliate program.

It should be noted that, as Amazon grew, it began to compete with its suppliers, offering the same products as its suppliers, directly through Amazon. With a philosophy consistent with the Car Insurance model, Amazon does not appear concerned with whether they or their suppliers make the sale. On balance, they know that everyone will win, as prices are adjusted dynamically. Amazon prices tend to run a little higher, with customers deciding when the Amazon name is worth the additional incremental price.

Complementary models: Affiliate, Car Insurance, Wedding Planner, Wholesale

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