Table of Contents
The Company chosen for the sake of this paper is Amazon.com. which is the largest e-commerce multinational company. This company fulfills its customers’ needs worldwide through the application of e-commerce for both business to customer as well as business to business relations. The company trades its products through the internet. At first it just operated as an online store for Journals, articles and books but based on the competition the company shifted to other products (Mueller, 2004).
Direct channel of distribution
When the company was founded and the competition as far as the e-commerce was concerned, the company used only the direct channel of distribution to distribute its products that included electronic books, journals and articles. It was after the increased competition that the company decided to shift to more categories of products for which they used the indirect channel of distribution (Kolter,1996). However, even today, the direct channel of distribution is the dorminant channel based on the fact that the e-books, e-journals and e-articles for Amazon.com are distribute via the company’s website using the direct channel that does not involve any middle men (Mueller, 2004).
Indirect channel of distribution
Amazon.com at one point decided to adopt the indirect channel of distribution by engaging the retail channel in selling its kindle ereader device based on the increased competition in the market. Some of the companies that were posing intense competition to Amazon.com were Apple and Barnes & Noble that have distributed their similar devices through the indirect channel of distribution. The Kindle ereader as well as its other products (Mainly e-books) belonging to Amazon.com have always been sold using the direct channel of distribution (Mueller, 2004).
Based on the performance of the company as well as the nature of its entire business as well as the products they deal with, the most efficient channel of distribution for Amazon.com and for which most of its products are traded in is the direct channel of distribution (Mueller, 2004).