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Essay / Walmart and Amazon Case Study - 721
The company started as an online book seller, then quickly expanded into music and movies, and finally into electronics and household products. Another part of Amazon's retail strategy is to serve as a channel for other retailers to sell their products and take a percentage off each purchase. Amazon is not required to maintain inventory of products that sell more slowly. This strategy has made Amazon a leading “long tail” retailer, expanding its available selection without a corresponding increase in overhead costs. Encompassing this “long tail” retail model, Amazon introduced the sale of used products through its sellers’ marketplace. This retail model provides the company with another source of retail revenue without the need to store products in its warehouses. Shipping and advertising are handled exclusively by sellers, with Amazon taking a percentage cut of each sale for simply providing the channel. Internet Services On the consumer side, Amazon provides services like Amazon Prime, which offers free two-day shipping on retail purchases, premium video streaming, and free access to the Kindle library, all for one year