Who would have thought if the online shop site that was born from the garage of a Washington area of America continues to draw criticism to this day? But why? Yes, why? Amazon is a site that is consistent with e-commerce niche until now is still a reference and conversation until reportedly this site is still a ‘king’ the world of online shopping wilderness. Not just limited to America, but the world. Extraordinary.
Starting from the sale of books in a small garage, precisely in Bellevue, Washington in 1994 the company that started the business by utilizing the internet media is like being the influence of e-commerce industry today. Why? Yes, a well-trained business and consistent retail sales through small bookings outside the city of America are increasingly believable and as capable of attacking several competitors who have previously been present and will be present at this time. Its valued development from small sales continues to grow into consumer electronics such as CDs, DVDs, TV shows and more. More amazing, now Amazon offers online storage and web hosting for movie rentals. The success of Amazon’s business trip is certainly noticed right by former founder of Amazon, Jeff Bezos. Until finally developed rapidly in 11 countries including Canada, China, France, Japan and the UK. At least 88,400 people have worked at Amazon to accommodate and handle all world-scale transactions. The amount is very fantastic, about 40 billion euros / 61 billion dollars can be obtained by Amazon in about 1 year. Interestingly every year has increased in number, in the year 2011-2012 alone the increase occurred about 27% of which the value of the capital about 120.6 billion dollars. That doesn’t include shares that also rose 30% in the same period of 2011-2012. Well, from the analogy of accumulated revenue owned by Amazon certainly can be sure that the turnover is owned in a year. How about you?
Amazon Defense Tricks
Amazon’s trick is to attack competitors with low prices, pay attention to excellent service including delivery, reliable and also cheap. Almost all the prices available on Amazon are cheaper, including the price of Android phones, the latest computer prices to baby and child clothes, And the trick is that Amazon has had a much lower price before being sold and taxes. In this case, Amazon’s calculations are pretty clever by giving it to a retailer to be able to earn or earn 10%.
Well, for taxes, in the UK the taxes that apply to e-Commerce activity is quite expensive which is about 20%, the activities undertaken are music downloads, eBooks. But unlike in Luxembourg, tax payment for two items can be cheaper is 3%. All profits are collected in England and Luxemburg which are then distributed for royalty payments such as brand and technology use. But the EU pressured Luxembourg to reinforce tax rules and the UK government is trying to raise tax regimes exploited by multinationals. However, nothing impacts on Amazon’s sales increase as a competitor, from HMV to Woolworths, in the face of existential crisis or destruction.
E-commerce Gap in Indonesia
Apparently a variety of tricks that have been used Amazon in maintaining existence dam e-Commerce world, ranging from sales, products, delivery, and payment of taxes and royalties. Although it looks easy, some of this is quite difficult to realize in Indonesia. Related to e-Commerce, the ITE Law which has been passed has not yet touched globally the use of internet technology in Indonesia. Not to mention the tax policy and royalty to the product. There are still many jobs with e-Commerce businessmen. Even so, there is a wide gap that e-Commerce activities conducted in Indonesia are currently quite tempting from the profit. Evidently, only a few marketplace and shopping search sites are able to boost e-Commerce activities in Indonesia today. Are you the next player?