Amazon 's Distribution Of Distribution Essay

Amazon targets the at-home customer. Amazon makes it convenient for customer to buy anything or Anything, with a capital “A” according to Bezos. Amazon provides convenience to customers all over the world with it services. The services Amazon provides ranges from AmazonFresh which delivers groceries to your home to Amazon Prime that allows you to stream any television show, or movie with any Amazon device. Amazon is a multifaceted online marketplace that is changing the game of selling. The convenience of one-click shopping is powerful and a rapidly growing industry. Amazon is leading in this innovative industry, and has created jobs in the process.

Although retailers such as Walmart and Target do have loyal customer bases, they are not sitting idle as Amazon and other eCommerce firms obtain a greater market share. They are expanding their online profiles and offering similar shopping experiences. However, they hold one major advantage over Amazon. Every store can serve as a distribution center. Walmart is a perfect example. It has expanded its online profile to provide eCommerce services to its customers (Thau, 2014). Because every store serves as a distribution center, customers can receive their order much faster than Amazon can deliver it.

Amazon has earned a great reputation in customer service for allowing customers to shop without face to face, avoiding talking to a customer’s service representative agent on the phone, everything it done online. Sales clerk does not exist, everything is ordered with a click of the mouse, and arrives extremenely quick in the mail (Cohen, 2009). Amazon at interval has gotten involved with the customers when they can have too. According to Green, H. (2009), “Amazon stands out most markedly from other companies, and helps explain how the company earned the No. 1 spot on Business Week’s customer service ranking this year”( para. 1).

Amazon.com, Inc., on May 28, 1996, started offering a range of products and services through on-line webpages. This new company began to offer products including merchandise and content that was purchased for resale from multiple vendors and sellers ranging from lots of third-party ways. The Amazon.com business has three different segments within its operating environment: Amazon Web Services, North America, and International make up the operating areas. The North American area for Amazon has segments that focus on the sales from retailers of consumer items or product from sellers through its website Amazon.com.

Amazon focuses on global reach, putting customer first,, and extensive selection of products through its vision which is “To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online” (Gregory 2016).

The basic Amazon sales channel is the web store front- end which serves as their core business. Customers go to the Amazon.com website, browse products, and place orders. Amazon is responsible for all front-end customer relationships and back-end logistics in this model. Once an order is placed, Amazon decides which internal distribution center or drop shipper should be responsible for shipping the order to the customers. After that, Amazon will responsible for coordinating the fulfillment of the order. When products are sourced from its internal distribution centers, then Amazon start to picks, packs, and ships the order. When products are sourced from a drop shipper, such like a book distributor, the distributor packages the products by using the Amazon box delivers it to the customer (Maltz et al., 2004). This model requires Amazon to maintain or purchase inventory for immediate selling. In this model, Amazon owns the customer relationship, provides the technology, owns or purchases the inventory, and executes the logistics as well.

To truly enjoy the understanding of such a large distribution channel I believe we need to start with the beginning of the process which is the suppliers. When it comes to purchasing power, no one is stronger than Walmart. With this purchasing power they are able to shape their suppliers the way they feel necessary. Walmart suppliers are required to use their just in time automation which ensures Walmart racks are always supplied but avoiding inventory. In the suppliers eyes, Walmart is a merchant that

Almost every inhabitant of the Colombian Amazon has an interesting story to tell about their home, which is one of the most amazing places in the world. The Amazon provides survival experiences, exotic food, extreme recreation, and a unique livelihood to all those who have lived there. However, the character and future of many has also been shaped by a context of poverty, harsh violence, restricted opportunities, geographical disparities and gender inequity. Almost everyone who has loved and lived under the magic of the Amazon has also lost loved ones. Many have died there, either by direct armed conflict or by the weakness of the State regarding law enforcement and insufficient ability of services to meet basic needs.

This portion of paper investigates the tangible and intangible assets possessed by Amazon incorporation. According to International accounting standards, tangible assets are listed under the head of property, plant and equipment disclosure. Amazon incorporation have different tangible assets under the head of property plant and equipment which are land and buildings, equipment and internal use software, corporate assets, construction in progress, accumulated depreciation and other related minor assets. The financial analysis of Amazon incorporation suggest that the value of equipment and internal use software for the company enhanced during the period 2014 till 2015 and the value was further increased

The article “Amazon.com Is a 21st Century Deal with the Devil” from author Amy Koss (first published in the Los Angeles Times) talks about how Amazon is taking over malls, losing jobs, and how it is an overall scheme from Lucifer, which I disagree with. Why is Amazon seen as the antagonist when other major corporations are taking over online and physically too? Companies like these include ebay and Walmart/jet.com. As you can see, I disagree with the author because to be honest, the people whose jobs are being lost probably shop on Amazon themselves. Those who do not adapt to technology do not benefit from its advantages which help people find different products that would not be found in stores, for a better price, and delivered right to

Amazon recorded a second quarter loss of $126m loss, or $0.27 per share in 2014, which was more than the $0.15 per share loss expected by analysts, according to data analyzed by Bloomberg and yet its share price rose substantially (Red Herring, 2014). The loss of revenue was due to several reasons. In a conference with analysts, Tom Szkutak, who is the Amazon.com Inc. CFO pointed out the increased investment in its cloud computing Amazon Web Service (AWS), in addition to the price reduction of the AWS for its customers as some of the reasons for the incurred high costs in the quarter (Red Herring, 2014). Other factors of the loss of revenue as explained by Szkutak was the slowdown in international sales mainly due to Japan’s 3% tax increase on consumer goods that came into effect in April 2014, in addition to the $100 million investment on producing Amazon’s TV shows for Amazon Prime customers in the third quarter of 2014 (Red Herring, 2014). The loss of revenue was also due to heavy investment in launching of its first smartphone called the Amazon Fire and a new subscription platform for e-books (Red Herring, 2014).

The threat of substitutes for Amazon is high. With the exception of its patented technology, there are quite a lot of alternatives to Amazon’s products and services. In addition to physical presence, most companies have an online store as well. Amazon’s products can be purchased all over the internet and they are just spread out among different web sites. The companies operate in brick-and-click mode providing the similar product categories and competitive prices have become the biggest threat for Amazon. However it is extremely difficult for Amazon to establish physical stores or launch price

Amazon is a multi-billion dollar organization, thus you can make however much as could reasonably be expected through their associate advertising programs. When you join as an Amazon Associate, you can begin producing subsidiary connections quickly and advance it on your blog or any of the 100s of online networking locales. To be an expert partner advertiser relies upon many components.

The most recommended distribution network suited for highly differentiated products would be drop-shipping network. It is the process where shipping avoids the retailers, meaning the retailer isn’t informed to hold any type of inventory for the customers, and instead, the products are directly delivered to the end customers from the manufacturers. In this network, the supply chain can divert and expand low level of inventory to a higher level of availability. It also gives an opportunity for manufacturers to reschedule the customization when necessary. This is excellent for sellers that are able to build to order, and for end customers who wants highly-differentiated products that are in low-demand but are highly valued and are willing to wait for delivery.

In 2000, Amazon and Toys-R-Us entered into a symbiotic agreement that would benefit both corporate entities. Both companies had recently had unimpressive fiscal years due to differing issues. Toys “R” Us struggled with poor order fulfillment. Although they were equipped with enough merchandise, other issues kept them from being able to get orders to customers in a timely manner; especially during the busy holiday season. Conversely, Amazon was forced to write off $34 million because of a miscalculation in inventory and had orders that could not be honored (Ouchi, 2004). Following these debacles, both organizations felt that joining