Amazon's Information Systems

The internet has revolutionized the way modern shoppers purchase items for their homes. Consumers no longer have to leave their homes to purchase items. From home, shoppers can buy anything from a car to groceries.

The barriers to entry into starting an online store are very low. All a potential entrepreneur needs is a computer with an internet connection, something to sell, and access to a post office. This results in many online sellers, and buyers have a majority of the power. This sparks a lot of rivalry amongst competitors. The main focus of product differentiation is emphasizing the quality of the goods sold. To be successful, online sellers need to assure potential clients that the item purchased is precisely what the buyer expects.

Amazon.com is an online store that has effectively differentiated itself from its competitors. Buyers have gained confidence in purchasing online through Amazon. By setting up an Amazon account, a buyer is able to easily transition from selection of a product to checkout. Saving billing information online is a point of anxiety for many online shoppers and Amazon has been successful in gaining the trust of its clients. Amazon.com has also excelled in fully executing online purchases. Once a transaction has been made, delivery is generally completed within a week. This is achieved through Amazon’s distribution infrastructure.

Amazon further differentiates itself from competitors by tracking its users’ browsing patterns. This allows Amazon to make recommendations for additional purchases based on past view history. This is an effective marketing tool. Buyers may be led to purchase music or a movie based solely on an Amazon recommendation.

Everything Amazon does is supported through information systems. Attracting customers to the website, browsing products, checking out, and delivery is fulfilled through Amazon’s IT infrastructure.