Which Internet business model does Amazon.com primarily use?

Study for the Information Technology Applications 203C (ITA203C) FE Test. Utilize flashcards and multiple-choice questions, each with hints and explanations. Prepare effectively for your exam!

Amazon.com primarily uses the virtual storefront business model, which is characterized by its focus on selling a wide range of products directly to consumers through an online platform. This model allows customers to browse, select, and purchase items over the internet, providing an expansive and easily navigable environment for shopping.

The virtual storefront model is effective for Amazon because it integrates various functionalities such as product listings, customer reviews, personalized recommendations, and a seamless checkout process. This approach not only enhances the shopping experience but also supports the retention of customers by creating an accessible and user-friendly marketplace.

In contrast, the other options do not encapsulate the primary focus of Amazon's operations. An information broker model typically involves the collection, management, and sale of data – a service that is secondary to Amazon’s main retail functions. The transaction broker model generally serves as an intermediary to facilitate exchanges between buyers and sellers, while Amazon often takes on the role of the seller itself. An online service provider focuses primarily on offering services rather than products, which diverges from Amazon's retail-centric approach. Thus, the virtual storefront model best reflects how Amazon functions in the e-commerce landscape.

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