Tanaya many years till now Amazon is facing a

Tanaya
Singh

 

The critical issues faced
by Amazon are:

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·      
International growth- By
international growth it means that how are they going to generate revenue or
adjust in the local markets with all the new e-commerce websites being
developed locally.

·      
Sale of counterfeit
items: One
of the major issues that Amazon being an e-commerce website is facing is the
sale of fake products, which can lead to losing customer loyalty. 

Strategic options for the
critical issues can be:

·      
International growth-  Though Amazon’s American business has positive
outcomes almost every quarter, it is unable to do so in the international market
and is losing money every quarter. Amazon’s business is still growing in the international
market, due to which the revenue generation and adjusting in the local markets
is concerning. To overcome these issues Amazon has been introducing newer
services and features exclusive to particular geographical areas. For
example, in the potentially profitable marketplace of countries like India and
China there are not many people having debit and credit cards or wanting to use
them online, hence for this purpose Amazon had to introduce Cash on Delivery. Strategies
like these which are beneficial for the customers can help attract more loyal
customers.

·       Sales of counterfeit items- From many years till now Amazon is facing a challenge
of eradicating the sales of fake products. One of the measures that Amazon can
take into consideration is improving technological aspects of the
website and restructuring the company policies to address counterfeit sales.

My Recommendations on these
issues are:

·      
To increase the revenues in the
international market I would suggest Amazon to introduce more customer friendly
schemes for the initial years to get hold of loyal customers. As, Amazon prime has
played a very important role in Amazon’s growth in many countries like UK, Japan,
Canada, etc. They should start introducing prime membership to the countries
where they haven’t been able to experience growth in revenue and sales, this
strategy will also help them attract more customers.

·       In
order to prevent the consumers from buying counterfeit items Amazon can provide
them with automated consumer reports and product evaluation could help reduce
the number of counterfeit products sold on the website.

 

References
https://www.fastcompany.com/3054295/what-amazon-prime-is-like-around-the-world. (n.d.).
https://www.recode.net/2015/5/11/11562518/amazons-international-growth-challenge