In a highly competitive society, with the vigorous development of the technology industry, the digital business model has been a new business model that is different from the traditional business model, has brought an unprecedented storm of reform. Digital business is known and accepted by more and more companies，and digital business model has changed the traditional mode originally, it is in improving the enterprise’s management level and competitiveness, reduce the operation cost, shorten the distance between transactions with customers. So many companies are using digital business models to promote their trade. For example, Alibaba, Google, and Amazon have their web services.
Amazon’s adoption of the digital trading model has brought the company substantial competitive advantages and benefits. Amazon is different from many enterprises, and its digital business model drives amazon to launch new products and services at a breakneck pace, which does not require a long period of research, analysis, and other steps. Because amazon developed its web services system early. its consumers automatically leave precious reviews and purchase data for the company when they use Amazon. With these data, amazon can analyze the big data through its AWS, analyze the truth behind these data in detail, accurately evaluate its new products, and quickly answer the question of whether and how the products should continue to be promoted (Bermudez,2013). This process of amazon reflects the concept of taking consumers as the centre and improves the product through the true reflection of consumers, thus reducing the cost of many research data.
In the current market competition, enterprises must learn to figure out the preferences of each consumer in order to provide products that meet the needs of the majority of consumers. In the first three quarters of 2012 alone, amazon generated $39.8 billion in revenue, a considerable increase from the prior period. Amazon owes much of this transformation to its dominant AWS. One of the most potent aspects of amazon’s online store system is the ability to use AWS to allow customers to discover their underlying needs. When a customer enters amazon’s online store, he or she finds some “popular combinations” or recommendations for the most selected products. These are the hooks that attract customers to discover their potential needs (Jackson,2011).
On the other hand, when amazon makes recommendations to customers, its customer experience is extraordinary. People shopping on the Internet because of the goods too many, amazon uses its AWS to accurate recommendations for users, not only helps the user to shorten the decision-making time but also increases the conversion rate. Because Amazon gives a lot of real data, it makes customers trust and loyalty to it in a short time. In amazon’s AWS system, each user’s profile records all purchases and browsing by that user (Amazon, 2018). Amazon’s product evaluation system also summarizes and reflects customers’ preference for products from another aspect. Amazon turns this data into a profile of its customers, telling them point-in-point about the reliability and intentions of its recommendations.
Because there is massive data that is needed to analyze, people’s decisions often lag behind those of machines. There are Much marketing, search engines, and decision making on the Internet, these are done with big data science. Therefore, big data analysis is becoming more and more critical for companies. In order to meet the needs of other companies, amazon has integrated its web services for other companies, which has increased amazon’s revenue. In April 2015, Amazon announced that its AWS was profitable, with sales of $1.57 billion and revenue of $265 million in the first quarter. In October, Amazon reported an operating profit of $521 million for AWS in the third quarter, with an operating margin of 25 per cent. AWS reported revenue of $2.1 billion in the third quarter of 2015, up 78% from $1.17 billion in the third quarter of 2014. Revenue at the AWS division rose 69.5 %, with $2.4bn in the fourth quarter of 2015, with an operating margin of 28.5 per cent, and its operating margin is $9.6bn. In 2015, Gartner estimated that AWS customers deployed ten times as much infrastructure on AWS as the 14 vendors combined. In the first quarter of 2016, amazon reported revenue of $2.57 billion and a net income of $604 million, up 64% from the first quarter of 2015, and AWS surpassed amazon’s North American retail business for the first time (BBC, 2015). By 2017, AWS had annual revenue of $17.46 billion (Jordan, 2018). By the end of 2018, AWS’s annual revenue had grown to $25.65 billion.AWS continued to make more benefits in 2019; Amazon reported a 20 per cent increase in sales in 2019, while AWS reported a 37 per cent increase.AWS alone accounted for 12 per cent of amazon’s profits in 2019 (up from 11 per cent in 2018). About 13% of amazon $70 billion in revenue in the quarter came from AWS, and AWS is still growing faster than the company. Its cloud computing service generated $8.38billion in revenue for amazon (Daniel, 2020). The digital model improves Amazon’s business activities and increases revenue by providing services to other companies.
Reference
Amazon, E. C. (2018). Amazon ec2. línea]. Available: https://aws. amazon. com/es/ec2.
BBC (2015). Amazon web services ‘growing fast’. Retrieved from: https://www.bbc.co.uk/news/business-32442268
Bermudez, I., Traverso, S., Mellia, M., & Munafo, M. (2013, April). Exploring the cloud from passive measurements: The Amazon AWS case. In 2013 Proceedings IEEE INFOCOM (pp. 230-234). IEEE.
Daniel, S (February 6, 2020). “Amazon’s Record 2019 in 7 Metrics”. The Motley Fool. Retrieved February 11, 2020.
Jackson, K. R., Muriki, K., Ramakrishnan, L., Runge, K. J., & Thomas, R. C. (2011). Performance and cost analysis of the Supernova factory on the Amazon AWS cloud. Scientific Programming, 19(2-3), 107-119.
Jordan, N. (February 1, 2018). “Amazon cloud revenue jumps 45 per cent in the fourth quarter”.
zezhouliu112 
Hello, Zezhou, I have read your article about Amazon’s new sale method by tech. it is really nice and I can not agree more about it. We all experienced that sometimes we were talking with friends, just like ‘Hey, I wanna have some noodles for dinner’, then when you opened your Amazon, you may be surprised and shocked that one of noodles have appeared in your recommendations column…….That is really amazing, but what I am thinking about is whether it refers to privacy disclosure. The application collected our voice record, using its system to analyse and give us the consequences and advice. The managing system within these apps may break our privacy, which is my point. So, from it, you could also talk something about the contrast: What are the disadvantages of it? Is it breaking users’ privacy? If these aspects are concluded, the article will become more complete to some extent.
Thank u!
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Hello, Zezhou. I am interested in your comment to Amazon. Data collection and analysis can help manage or solve major global problems, help create new scientific breakthroughs, promote human health, provide real-time information flows (e.g., information flows on disease outbreaks or traffic conditions), monitor natural systems, and improve resource utilization Efficiency, and support decision-making by business people, policy makers and civil society. There are different ways in which big data supports sustainable development, especially when combined with mobile technology. For example, in sub-Saharan Africa, vast amounts of data on soil properties are mined to help determine fertilizer needs and increase productivity. For example, Bridge International College uses big data and algorithms to enhance early childhood education and primary education in five developing countries. With cloud-based (on demand) services, data collection and analysis becomes cheaper. Small companies can rent cloud-based pay-as-you-go data services instead of buying expensive hardware and software systems and hiring internal data analysts.
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