How should amazon web services price its services to zappos
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How should Amazon Web Services price its services to  Zappos ?. Original blog posting (December 19 , 2013). Amazon Web Services, Inc. offers Cloud-based hosting service . Provides compute, storage, and database services Used by Amazon’s various divisions including Zappos. Question 1.

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How should amazon web services price its services to zappos
How should Amazon Web Services price its services to Zappos?

Original blog posting (December 19, 2013)


Amazon web services inc offers cloud based hosting service
Amazon Web Services, Inc. offers Cloud-based hosting service

  • Provides compute, storage, and database services

  • Used by Amazon’s various divisions including Zappos


Question 1
Question 1

What possible pricing methods could Amazon use to set the transfer price for AWS’s cloud-based hosting service to Zappos?


Question 2
Question 2

Why might Zappos’ management argue for a discounted transfer price?


Question 3
Question 3

Why might the management of AWS argue for a transfer price at the market price?


Question 4
Question 4

What advantages could Zappos experience from using Amazon’s AWS services?  What advantages could Zappos conceivably experience by using a different cloud-based hosting service?


Question 5
Question 5

Should Zappos be allowed to use a cloud-based hosting service other than AWS? Why or why not?


Question recap
Question Recap

  • What possible pricing methods could Amazon use to set the transfer price for AWS’s cloud-based hosting service to Zappos?

  • Why might Zappos’ management argue for a discounted transfer price?

  • Why might the management of AWS argue for a transfer price at the market price?

  • What advantages could Zappos experience from using Amazon’s AWS services?  What advantages could Zappos conceivably experience by using a different cloud-based hosting service?

  • Should Zappos be allowed to use a cloud-based hosting service other than AWS? Why or why not?


For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at http://accountingintheheadlines.com/Related video resources can be found at http://www.youtube.com/user/accountingheadlinesQuestions or comments? Contact Dr. Wendy Tietz at [email protected]


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