Fabernovel Reveals the Three Secrets of Amazon
The first engine leverages the Internet’s specific characteristics to improve the very traditional “bricks and mortar” business model: real-time analysis of visitors’ behavior in order to continuously improve customer experience and increase conversion rates, extreme optimization of logistics, opening the platform to third-party vendors in order to reduce inventories, etc.
The second engine is the control of customer relationships, at the core of the platform integrating sellers and consumers.
The last digital engine is the development of an ecosystem similar to the Apple model. AWS (Amazon Web Services) is instrumental to this strategy, even if its current business model is closer to a B2B provider of hosting infrastructure.
The formidable logistical and transactional capabilities of amazon.com are used today by millions of sellers (businesses and individuals) to market a myriad of products. AWS could easily apply this model and become one of the dominant players of application distribution platforms, alongside the Apple App Store, Android Market and Force.com.
As of now, the second digital engine mentioned in Fabernovel’s study is still missing – even though AWS already offers a payment system as part of its services. Most SaaS vendors that use AWS keep their independence with respect to their customer transactions.
In addition, we’d like to modestly point out that one of Fabernovel’s slides showcases rising and established stars of the Web that use AWS, like Zynga, Dropbox, Netflix and …ftopia!
Source: Stéphane Distinguin, Amazon.com: the Hidden Empire, faberNovel, May 2011. Fabernovel’s original blog post can be found here.