Amazon Organization Is Involved in Online Retail Trade Research Paper

Amazon Organization Is Involved in Online Retail Trade - Research Paper Example Amazon manufactures electronics, such as the Amazon Kindle, for clients and provides cloud-computing services. Additional revenue for the company is from marketing services. This is mainly by online advertisement and co-branding of credit cards (Schneider, 46). The company operates in the United States and in other countries such as France, Germany and China. Strategy Amazon usually delivers products to the customers after transactions are complete. This usually takes a couple of days depending on diverse logistical factors that include distance and address. However, the company has introduced a new system, popularly called same day shipping. This enables clients to buy products online and then the products are delivered to them the same day. This remains its clear-cut strategy to ensure the achievement of competitive advantage. Indeed, the large range of products that it sells is one of the noble strategies that the company is integrating. Buyers can find a variety of products such as toys, electronics, and books that are in excellent form. It customizes the experience of the buyers and gives recommendations for advancement in service delivery that contributes to customer retention. Additionally, it does customer tracking to enable it to gain more customers and retain them. It also gives individuals the opportunity to sell various commodities via its platform (Rosenbloom, 174). These can be either new goods or those that have been used. The advantage that Amazon has had over its competitors is that it does not charge sales taxes. This is mainly because its clients perform online purchasing that ensures effective ordering and delivery of the items with immense convenience. The company’s prior operating strategy was to avoid establishing networks in the nations that have adopted unfriendly tax policies, and thus such states do not have Amazon distribution warehouses. However, the new strategy that it is adopting requires that it sets warehouses across the United States including those tax unfriendly states. This means that the company will give up the lead it has over competitors. However, more warehouses in many states in the US will mean that products are closer to clients thus can be delivered the same day that purchase takes place. This can benefit individuals who are last minute gift shoppers. Local commercial institutions usually push these states to collect sales tax from Amazon because lack of such revenue gives the company a price advantage over them. However, online retailers such as Amazon are exempted from paying sales tax in states in which they do not have physical existence. Currently, Amazon has warehouses in six states and thus contributes sales tax in six states. These are Washington, Kentucky, New York, Texas, Kansas and North Dakota (Rosenbloom, 174). With the new strategy, it will have to collect sales levies in more states. Presently, it is unclear how the strategy will affect the revenues. Effects on competito rs, consumers and Revenues Amazon has eluded charging sales tax from its clients.