AMAZON & OZSALE

Amazon was founded by Jeff Bezos in 1994 and since then the company has rapidly expanded from an online bookstore to a multinational e-commerce business. Throughout this period Amazon has had a range of business models, as of today they have a diversified business model which involves an e-commerce, cash machine business strategies and a subscription service (How Amazon Makes Money: Amazon Business Model in a Nutshell, 2021). Due to the range of businesses that are under the brand of Amazon there is also a dynamic revenue model that is used. Although the online stores are the core part of the business. Amazon operate on a very tight profit margin through its online store, but this is how Amazon have been able to have such a fast and efficient delivery system. They collect money from customers and then pay their vendors with larger payments. This is how amazon has been able to disrupt multiple industries because their dynamic revenue model helps Amazon to be scalable, competitive and with their unique use of technology they are consistently ahead of the curve.

Comparatively, Ozsale was founded in 2006 by Jamie Jackson and is a members only online shopping club, which is part of APAC Sale Group. APAC Sale Group is an apparel and Fashion company based out of Malaysia. Ozsale has a online retailer business model, where they are the last link in the supply chain and Ozsale offer a free membership which then gives members exclusive discounts of designer brands. Ozsale ranks against sites like The Iconic, ASOS and Shein, which are all online global fashion sites. Ozsales stand out feature is the ability to have huge discounts on their designer brands that they stock but as more e-commerce stores are appearing there is a lot more competition for Ozsale. The company doesn’t have the same scalable model as Amazon has and due to the smaller range of products they have a more niche market so need to continue to improve their site and reach to target customers.