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Amazon, being an online only retailer, faces the challenge of getting people to purchase products that most people traditionally purchase in brick and motor type stores. For example, if you were a consumer looking to purchase a digital camera or other type of electronic. Unless you know specifically what type of camera you want you are probably going to go to a best buy or other electronics store to mess around with a few different cameras to see what features each has, how they work, and so forth... Amazon doesnt allow for this since they are online. So the problem is that many times these types of items are not purchased through their website.

What they are doing to try to fix this is a new "club" where you pay $79 a year for unlimited 2days shipping on as many items as you purchase. So if you buy 500 things the shipping is free (except for the $79 a year) Amazon hopes that this will get people to purchase more products because they dont have to worry about the cost of shipping. If they dont like it they can then return it or if they do end up liking it then everything worked out for amazon.

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Q: What are some of the business challenges facing Amazon?
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