Asked by Tylour Smith on Jul 03, 2024
Verified
B2B typically has margins of 2-4 percent; Amazon _________ make money ________.
A) does; through the offset of its B2C business
B) does; through high volume in B2B
C) does not; but it doesn't care since it is making so much in the B2C realm
D) does not; above and beyond what its competitors are making
B2B Margins
The profit margin achieved in transactions occurring between businesses, such as wholesaler to retailer, unlike transactions with the end consumer.
Amazon
Amazon is a multinational technology company focusing on e-commerce, cloud computing, digital streaming, and artificial intelligence.
- Comprehend the operational and strategic consequences of electronic business within both Business-to-Business (B2B) and Business-to-Consumer (B2C) frameworks.
- Comprehend the impact and changes brought by leading e-commerce entities in both retail and wholesale industries.
Verified Answer
TF
Tyerra FarmerJul 09, 2024
Final Answer :
B
Explanation :
Amazon makes money in B2B through high volume sales, leveraging economies of scale to achieve profitability despite the typically low margins in B2B transactions.
Learning Objectives
- Comprehend the operational and strategic consequences of electronic business within both Business-to-Business (B2B) and Business-to-Consumer (B2C) frameworks.
- Comprehend the impact and changes brought by leading e-commerce entities in both retail and wholesale industries.
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