study guidde 1
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School
University Of Arizona *
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Course
308
Subject
Information Systems
Date
Nov 24, 2024
Type
docx
Pages
2
Uploaded by MajorFreedomBeaver
How successful is Amazon in generating traffic?
Direct Traffic
Known as one of the largest e-commerce companies worldwide, Amazon is a
global leader in e-commerce. The year 2018 saw Amazon lead the way when
it came to online shopping traffic. Among desktop computer traffic,
Amazon.com accounted for 48%, while Walmart.com took 28%
(retaildive.com, 2018). The authors of our text define direct traffic as an
instance when someone types in a website's URL into a web browser or
search bar (Larson & Draper, 2018). By providing an exceptional user
experience, Amazon maintains its traffic. In order to achieve this, they
continue to develop the user experience and web development teams within
the company. Amazon advertisements in magazines and newspapers are
something I do not remember ever seeing. Packaging materials at Amazon
are decorated with everything Amazon has, with some packages having a
themed design.
Paid Referral Traffic
When individuals sign up for the affiliate program, Amazon, in turn, pays
them a percentage of each sale in which items are purchased on their
website or social media accounts by viewers or their audience (affiliate-
program.amazon.com, n.d.). It is a process by which a user clicks through
from one website to another (Larson & Draper, 2018). In addition to banners,
Amazon places site strips and other forms of advertisements. It also provides
users with 24-hour access to manage and view these reports and track their
earnings so that clients can manage and view the buying habits of their
audiences. Having said that, I'd link my account as it's free money for hardly
any effort. Unfortunately, I do not have a website or a successful social
media following. Individuals who wish to use the services must meet both of
these requirements.
How well does Amazon.com drive conversion?
Conversion Rate
Known for its great user experience, Amazon has built a team of business
and technology enthusiasts, innovators, and compassionate individuals who
are passionate about the work they do at Amazon. The main objective of
Amazon is to encourage consumers to make a purchase on its website, as
the company's business revolves around advertising and selling products on
its site. According to our text (Larson & Draper, 2018), this purchase
represents the action Amazon wants consumers to perform. Many of the
items Amazon sells are cheaper than those offered by its competitors
because it sources from companies. Fast shipping, often on the same day, is
another way Amazon drives conversion rates. Amazon charges a one-time
fee rather than a monthly fee like most membership programs. The
convenience of being able to buy goods and services from home eliminates
the middleman.
Revenue Generation
Revenue can be collected by Amazon through membership programs,
Amazon gift cards sold at retailers such as Target and Walmart, and its web
services. A second way Amazon helps create revenue is by recommending
other products or services that other members have purchased together and
by doing so, they are upselling the product to include add-ons. This can only
be accomplished by advertising the products in a way that stimulates
consumers to buy. Under the text "Sign in for the best experience" on
Amazon's home page, they say you need to log in to experience the best. A
picture surrounded each category, making it easy to locate what you were
looking for.
Search Traffic
Consumers can find the products they are looking for on Amazon thanks to
suggestions built based on how they have shopped, reviewed, and purchased
products in the past. These actions are tracked and stored by Amazon's
algorithms and combined with other saved experiences to locate the
suggested products. Making shopping more personal is one of the ways
Amazon helps the shopper's experience.
How well does Amazon maximize revenue?
Revenue Generation
Depending on the product, Amazon might return many different brands of
the same item or similar products. Amazon sells the products of other
companies that sell those different brands. They also provide Amazon with
revenue, since they provide many different services for a fee. When
consumers make bundle purchases, Amazon's algorithm may search for
duplicate products from other companies as a suggestion. Review criteria are
part of what the algorithm detects and stores. Negative reviews may have
prevented the product from making the suggestions list or from being
purchased. An unsatisfactory product or service can be caused by consumer
reviews.
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