Amazon.com, Inc. is globally operating e-commerce retailer. The main competencies consist in high-tech options enabling to effectively drive site traffic and enhance user experience. The company leverages its brand by offering customers low prices for high quality products. The strategic approach enables Amazon to successfully dominate online retailing without intermediaries.
Over the past decades, Amazon’s internationalization enabled to embrace e-commerce transactions as wide as in more than 180 countries of the world. Permanent expansion of the marketplace and the number of sellers has increased the number of customers reaching 250 million worldwide. The single account option in Europe, for instance, enables sellers to operate in most of the countries across the continent.
Amazon provides a globally operated platform for millions of sellers worldwide to sell their products in line with the company’s strict requirements. Tactically, Amazon attributes its internationalization success to the expansion strategy embracing vast opportunities enabling sellers offer their products to international markets. The positioning on global marketplace, however, necessitates robust calculations and feasible approaches in terms of assumed risks and costs.
Strategically, Amazon penetrates international retail markets by clearly focusing on sales and customer satisfaction. Part of international expansion, Amazon heavily promotes its offers through Sponsored Products and Deals. The Sponsored Products option enables to visualize the most promising products in terms of future promotions and sales. Further Amazon is a rather advantageous platform for domestic and international sellers for it enables them to check actual figures of sales as well as the average cost of sales. By operating 11 online marketplaces worldwide, Amazon enables sellers boost their international expansion regardless of geographical boundaries.
Also, Amazon marketplaces assume tremendous e-commerce opportunities while sellers immediately access the international customers who are sure of the Amazon buying experience. Further, Amazon creates an extra leverage to the registered sellers by allowing them to use the Amazon brand. This benefit saves companies from the burden of incurring upfront costs needed to build up their own brands and work hardly on their name recognition (CPC Strategy Blog 2016).