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Amazon knows well about customers like you and me, how we select products, how we explore the website, even how we make some mistakes – like typo .? Everyday, there are more than millions of visitors going to the amazon.com, thousands of them probably type the wrong domain name of amazon, such as Amaozn or Amazn.
According to the latest research report, almost 0.5% users sometimes may type the wrong domain names. For normal amazon users, these kinds of leaking traffic can reach to hundred of thousands per year.
Of course amazon don’t just let it go. The fact is that they will try to buy or acquire as many as possible typo domains or misspell domains for amazon. When you type Amaozn.com or amazn.com, you still can be redirect to the correct site – Amazon.com, this means amazon already owned these misspell domains and do some traffic forwarding work in them.
For today’s internet, traffic is equals to money in some degree. Owned many misspell domains and other amazon related domains, Amazon can easily grab huge amount of high potential traffic which are also high buying power customers. Compare with the profit made by this kind of customers, the annual fees of domains can be ignored.
For us, we also can learn lessons from it, which is misspell domains are also gold mine if you can take advantage of them effectively. If someone can register as many misspell domains as possible focusing on a famous company or brand, he or she can also easily attract huge traffic immediately, and the most important thing is that it is all free.
Tags: Story
BATTLE ROYAL. It’s a collision in the making with an impact that could ripple far beyond which pioneer will lead the E-commerce revolution–and which will follow. Indeed, the budding behemoths present a fundamental choice for consumers in the Internet Age: Will most people gravitate toward fixed prices at the likes of Amazon’s clean, well-lighted superstore, with its familiar brand-name retail sheen? Or will the masses take a shine to dynamic pricing, the fluid give-and-take on eBay’s friendly, funky swap meet cybercharged into a global bazaar?
Most likely, they’ll flock to both–just as they buy at a garage sale in the morning and Macy’s in the afternoon. But which approach ends up attracting the most clicks could well determine the fates of thousands of other E-commerce sites all scrambling for the winning approach. While many well-known consumer sites count on a mix of business models at this early stage, they are dividing along much the same lines. Superstore Buy.com, eToys, and computer reseller Cyberian Outpost, for instance, are essentially moving the model of retail stores online, a la Amazon. If Bezos’ vision prevails, they could sail along in Amazon’s tailwind–at least until Amazon takes a sharp turn into their markets. But if eBay continues its rocket ride, bidding sites like Priceline.com and Onsale.com may jet past more conventional sites.
For the time being, the explosive growth of E-commerce will likely keep cybershoppers coming in droves to both types of emporiums. That’s one thing Amazon and eBay agree on. There isn’t much evidence that consumers want to ”one-stop shop for every single thing in their life at one company,” says eBay CEO Margaret C. Whitman (page 134). And Bezos rejects the widely held notion that a handful of megastores will dominate. ”There’s going to be tens of thousands of winners,” he says (page 137).
But each CEO’s clear desire to build the Net’s premier place to buy and sell is steering the unlikely combatants into an undeniable battle royal. From the consumer’s point of view, their goals sound remarkably similar: to be the prime place where people buy and sell the widest range of goods online. Bezos’ predictions aside, many experts believe that online, consumers will flock to an even smaller number of major brands than they do traditionally because there are few other cues for building trust. Already, some 101 million U.S. adults recognize the Amazon brand–ranking it No. 1 in E-commerce–and some 63 million recognize eBay, which ranks No. 3, according to a study by Brand Institute. ”First and foremost, consumers look for brand,” says Robert W. Pittman, president of America Online Inc.
As each tries to build a dominant consumer E-commerce brand, eBay and Amazon will be forced to satisfy the consumer expectations each has helped build. ”Up to now, you had these two big gorillas going their own way,” says analyst Vernon Keenan of researcher Keenan Vision Inc. ”Now, this is the first time you’ve had two E-commerce market leaders going directly at each other.”
The battle is getting more intense every day. On Mar. 30, Bezos cranked up Amazon’s auctions in direct competition with eBay. Analysts hadn’t expected Amazon to announce auctions for several more months, but it did so just one day after eBay announced plans to make a $1.1 billion secondary stock offering. Coincidence? ”No, it was not,” says Whitman.
Tags: Story
eBay vs. Amazon.com
Fixed prices or dynamic pricing? Whichever wins biggest will shape the future
Daniel J. Boone buys a lot online, and it’s not just because he lives in remote Juneau, Alaska. After finding some antique postcards early last year on auctioneer eBay Inc.’s Web site, the 30-year-old lawyer has returned repeatedly for such items as a shower radio and a computer scanner. Growing far beyond its start as a motley flea market for collectors of Pez dispensers and Beanie Babies, eBay EBAY now has more than 2 million items for auction daily. It’s expected to quadruple gross merchandise sales this year, to $3 billion, from which it skims a profitable 6%. For many of its 3.8 million registered members, eBay has become a prime online shopping stop. Says Boone: ”I look there first for just about everything.”
Whoa–isn’t Amazon.com Inc. AMZN supposed to be the Web’s leading store? Yes, indeed: With 16 million items for sale, Amazon has ”Earth’s biggest selection,” says Chief Executive Jeffrey P. Bezos. Amazon has added music, video, gifts, and greeting cards to the books it offers some 8.4 million customers–plus links to drugstore goods, pet supplies, and more. Despite Bezos’ recent warning of higher losses, analysts expect Amazon’s sales to top $1.4 billion this year. Says Gajen Kandiah, a vice-president at consultant Cambridge Technology Partners: ”They will become the Wal-Mart of the New Economy.”
Or will they? eBay’s surprise rise suddenly reopens the bidding for the E-commerce crown. In the blink of a cursor, the Web’s two E-titans have gone from being happy little shopping hangouts whose paths never crossed to being in each other’s crosshairs. Since late March, Amazon has begun holding daily auctions, while eBay–gasp!–is mulling fixed prices. Says Accel Partners venture capitalist James Breyer, who funds E-commerce companies that have been courted by both eBay and Amazon: ”Competitive intensity between the two companies is rising dramatically.”
Tags: Story
The beginning days
In summer 1994, former investment banker Jeff Bezos left New York for Seattle, Washington to create an online bookstore. The web site was launched in July 1995 to sell books through the Internet. These were the early days of Internet and the web site was unattractive. However it worked quite well despite a lack of key information such as publication dates. And Tom Alberg from the Madrona Venture Group was impressed enough to invest $100,000 in Amazon in 1995.
Amazon quickly became more than an online bookstore. It soon became a community in which customers could create book reviews online and research others before buying. It became not just a case of buying books but also of sharing opinions.
Rapid growth
In 1996, its first full financial year in business, Amazon generated $15.7 million in sales. In May 1997, Amazon.com raised ?54 million in an initial public offering as it launched itself on the stock market. In October 1997 Jeff Bezos himself hand-delivered Amazon?s 1-millionth order to a customer in Japan.?
One year after its stock market launch, Amazon added music CDs and videos to its web site. It then followed up with five more product categories ? electronics, software, toys, video games and home improvements.?
This was growth at absolutely breakneck speed and many onlookers thought that the rapid growth policy would indeed ?break their necks?. But early investors, such as Nick Hanauer, were convinced that Amazon would make a profit. However, profits didn?t come quite so quickly. Instead Amazon grew at express speed and profits were waived for the sake of growth to make it impossible for others to duplicate their achievement. It?s said that Hanauer?s initial $40,000 investment was at one time valued at $250 million. Hanauer apparently still keeps an old T-shirt from Amazon?s early days that reads: “Eat another hot dog, get big fast!”
The end of 1999 saw annual sales reach $1.6 billion and on 10 December, Amazon?s stock closed at an all-time high of $106.69. And in the same month, Time Magazine named Bezos “Person of the Year,” calling him the “King of Cybercommerce.”
But just one month later, the ?King’s? crown slipped badly.
Amazon.toast
Amazon fired 150 workers as part of a reorganization plan. Five days later, they reported a loss of $323 million for the fourth quarter, but promised lower losses in future. But the subsequent fourth quarter saw losses exceed that amount by more than $200 million.
By the summer of 2000, Amazon’s share price had dropped by almost 70% and analysts began to criticize the company for venturing into too many products and spreading itself too thinly. Speculation on Wall Street suggested that Amazon would file for bankruptcy or be bought out. Some even clearly warned investors to avoid buying Amazon stocks. Gloom and doom mongers gave the company various labels such as Amazon.toast or Amazon.bomb as the collapse of the world?s largest e-tailer was predicted. In early 2001, when Amazon reported a huge fiscal loss of $1.4 billion – the company’s worst-ever annual performance – Jeff Bezos finally came up with an answer.
Changing focus
In January 2001, the company?s chief executive promised a profit by the year-end. But expenses had to be cut and the business restructured. 1,300 workers (about 15 percent of its work force) were laid off. Two warehouses and a Seattle customer-service centre closed. Jeff Bezos gave orders to get rid of ?crap? and cease selling unprofitable products. The company concentrated on streamlining its storage, packaging and delivery operation. It boosted its online offer by becoming an online shopping portal, offering and selling products from companies such as Toys ?R? Us and Target. It also competed with eBay through Amazon Auctions.
By the end of 2001, Jeff Bezos had kept his word. Amazon reported its first profit with fourth-quarter earnings of $5 million. It was clear that one quarter of profits would not be enough but since then profits have steadily improved. This was only achieved by continuously pushing sales and increasing business efficiency and also expanding the products offered on the web site.?
10 years on
Nearly 10 years on and Jeff Bezos? name remains synonymous with the company. Hanauer, who describes his long-time friend as ?the smartest man in the world? is pretty sure that Jeff Bezos will head Amazon for some time to come. “He remains as single-mindedly focused on Amazon now as he ever was? says Hanauer. Amazon has survived and is also making a profit – a fact that many analysts and observers doubted would ever happen. The company has grown into a multibillion-dollar business and is now not only the undisputed leader of Internet commerce but also reaping a profit. Its community of almost 40 million customers will help it retain its market lead.
Location
Amazon.com Headquarters?
Address: 1200 12th Ave., Ste. 1200?
Seattle, WA 98144?
Phone: (206) 266-1000?
Fax: (206) 622-2405
Tags: Story
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