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What is the reasons behind Amazon and eBay being the leaders of e-commerce

Hey everyone! It's me Shouq. This is my submission for the homework for an Industrial Engineering class called Computing in industrial engineering - IE332 which I took in Fall 2017 in the American University of the Middle East (AUM) in Kuwait. 

Amazon and eBay


There are several reasons on why Amazon and eBay are considered to be the best at e-commerce. One of the reasons behind that is that Amazon and eBay make sure to provide personalized products for every single one of theirs customers. And that happens through the recommended products that you can see at the "you may like" section. Also, another reason they are considered to be the best is because Amazon and eBay have a great clear communication where the customers will get a notifying e-mail that they ordered something. Customers can also track the products they bought to know if it got shipped or not as well as knowing if it reached the country they live at or not yet. Not to mention that both Amazon and eBay understand the powerful impact of having an active social media accounts in order to advertise their products. This is the third reason why they are considered to be great at attracting customers and good with them. And that can be clearly shown in the fourth reason on why Amazon and eBay are the best at e-commerce. The forth reason behind that is that they appreciate and encourage their customers to write feedback about the products they buy which indicates that they value their customers and insure that they are satisfied with the products they are getting from the website. Finally, the last reason why Amazon and eBay are at the top of the e-commerce is not because they started by being at the top. Both Amazon and eBay had a very humble start and they actually started from the bottom, but eventually after trying hard for years and years they reached their goal. So the moral of this is that consistency and persistence is the key to have success in the e-commerce world. ("Learn Your Lessons From E Commerce Leaders eBay and Amazon", 2015)

There are several reasons why that even though Amazon is one of the most successful companies around the world; it is still struggling to be successful in China. Why China in specific and what makes huge companies like Amazon struggles to do well there? First of all, it all starts with the fact that China has not always allowed international companies to be in China or let its products pass the border of China or reach Chinese people. These international companies have tried and struggle and some even failed to win comparing themselves to the Chinese market. Some reasons behind that is the fact that most of these international companies fail to adapt to the Chinese society and its preference which makes it less preferred by the Chinese people and that is the second reason Amazon is failing in China. Another reason why Amazon is not successful in China is due to the structure of the Chinese E-commerce market that even though Amazon has been in China for 10 years, it still barley controls 2% of China's e-commerce market. In order for Amazon to try to increase the number, the first strategy was to find the biggest online bookstore all over China, but the problem that they faced was that their books was more costly compared to a local market called Alibaba. Alibaba controls a share of the Chinese market that is equal to 80%. Alibaba is a very famous market that attracts most Chinese people as they prepare local markets that was found by Chinese people and that is the fourth reason why Amazon was not very successful in China. The fifth reason why Amazon is failing in China is a failed deal that they did. That deal was buying a company called Twitch as the company was trying to increase their e-sport and game market. It ended up being a horrible fail. The reason of that is again because of a local company, but this time it is called Wang Sciong. So it only ended up costing the Amazon tones of money, and did not help them to increase their popularity in China at all (Hossain, 2016).

References

Learn Your Lessons From E Commerce Leaders Ebay and Amazon. (2015). Ameri Commerce. Retrieved 4 December 2017, from https://www.americommerce.com/6-Lessons-We-Can-Learn-From-Ebay-and-Amazon

Hossain, R. (2016). China's Great Wall: The Failure Of Amazon?. The Market Mogul. Retrieved 4 December 2017, from https://themarketmogul.com/chinas-great-wall-the-failure-of-amazon/

This assessment was an individual work. I divided the homework into two different blog post as the two parts of the homework are not related to each other. In part one, I had to answer two questions that were provided by the professor. I just deleted the questions and put the answers without the questions as I think writing the questions is unnecessary.

Peace, Shouq

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