use transaction cost thoery to analyze how amazon has minimized its transactional cost? Site sources

use transaction cost thoery to analyze how amazon has minimized its transactional cost?

Site sources

Expert Solution

A theory accounting for the actual cost of outsourcing production of products or services including transaction costs, contracting costs, coordination costs, and search costs.

Communication charges, legal fees, informational cost of finding the price, quality, and durability, etc., and may also include transportation costs.

Pack and pick fee

Amazon making seller to pay extra for someone to just ‘touch’ your product, the idea that need to pay for a worker to pick your product from one box and pack it into a new box .

Weight Handling Fee

Handling fee, you are paying for someone to touch your product above and beyond a simple pick and pack and for carrying heavy weights Amazon is charging extra handling fee for moving them.

Referral fee of item price

Amazon pricing for the item to market and make it sale and take it as commission.

Amazon charging on seller for transportation cost like pick and pack,weight handling and taking commission from manufacturer for product on communication charges, product marketing and any legal fees.

Outsourcing transportation and franchise dealer for quality control and any informal cost included to minimize it's transactional cost.

Rahul Sunny answered 2 years ago

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