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Amazon 101:Grow your businesswith Amazon
Confidentiality: The Short Version        »Information we are sharing with you is1.      Confidential Information. As used...
Agenda        »Retail is Evolving        »The Vision        »Why Amazon        »Myths vs. Reality        »Work with USAMAZ...
E-Commerce Growth Driver                                    Consumer shopping behavior is changing                        ...
The State of e-Commerce            E-Commerce                                                                             ...
Online Research Influences Offline Sales $2,000                                                                           ...
Ecommerce Empowers Customers                               Traditional Distributor   E-Commerce                           ...
Top Global Retailer Brand                                                       #1 Global Retailer Brand:Sources: Millward...
Amazon’s Large and Active Audience       Active Global                                        Monthly Unique              ...
Net Sales History                                                                                                         ...
Much More Than a Bookstore                                                Electronics & General                           ...
start with the                          customer                            and work backwards                            ...
Amazon’s Vendor Vision      Create strategic, long-term vendor relationships    enabling our virtuous cycle of    value, s...
Part Finder on Amazon.comAMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates                            ...
Part Search ResultsAMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates                                  ...
Part Detail PageAMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates                                     ...
Full Selection        Part finder allows customers to        find every possible part out of        millions of applicatio...
Full control over your product information       100% on-message, all day, everyday, 24/7/365AMAZON SERVICES CONFIDENTIAL©...
Customer Reviews    Increase trust in your brand and improve your sales     92%   of consumers read    product reviews   w...
How does Amazon promote Brands              Search                          Search                                        ...
Myth vs. Reality             Amazon           doesn’t sell          premium          brands.AMAZON SERVICES CONFIDENTIAL© ...
Myth vs. Reality                                             Amazon is a:                                            A.   ...
Myth vs. Reality                                            You are on-line.                                            At...
What’s next?   • Sign terms and conditions using Amazon     Vendor Central   • You create all detail pages in 5 languages ...
For more information contact»   Michal Bohosiewicz – Sr. Vendor Manager»   +352 691 999 864»   michal@amazon.lu
APPENDIX
Adjusting Your Strategy for Online RetailingAmazon is Different: successful vendors who partner with us keep these differe...
Pitfalls to Avoid  Common Pitfalls                           Considerations  Simply offering the same                  -Ma...
Keys to Your Success Collaboration Supports Both Online and Offline Sales    Keys    Give us best-in-class support by assi...
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Automechanika follow up1

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  • Welcomeand thank you for coming; we appreciate working with youRequest:Hold questions & turn off your cell phone; Q&A immediately after presentation
  • Notes to Pitchers: Although it’s not required that we have an NDA in place to deliver this pitch in its basic form, for vendors with whom we have a signed NDA, this will serve as a reminder. For vendors with whom we do not have a signed NDA, it’s cautionary.The faded background language is for effect in a slideshow, but will be more obvious (and distracting) in printed form. If you print the deck in color, remove the background language. It’s not necessary; just a prop. IF you print in BW it has already been removed.
  • Note to Pitchers: MAP and other RPM policies fall into the fourth bucket, but should not be mentioned specifically in the deck. If you are aware that your vendor may have a policy that risks degrading the customer experience, refer to the Vendor Pricing Communications Guide* for direction. If you have further questions, please contact Dean Falvy (deanf) in Legal.*https://w.amazon.com/index.php/CSN#Vendor_Pricing_Communications_Guide
  • Presenter Notes:The Check Bullet is an image file and can be copy/pasted as needed.
  • Transcript of "Automechanika follow up1"

    1. 1. Amazon 101:Grow your businesswith Amazon
    2. 2. Confidentiality: The Short Version »Information we are sharing with you is1. Confidential Information. As used in this Agreement, “Confidential Information” means all nonpublicinformation relating to Amazon or disclosed by Amazon to the above-referenced company, its affiliates or theagents of any of the foregoing (collectively, “Supplier”) that is designated as confidential or that, given the nature of confidentialthe information or the circumstances surrounding its disclosure, reasonably should be considered asconfidential. Confidential Information includes, without limitation (i) all nonpublic information relating to Amazon’stechnology, customers, business plans, promotional and marketing activities, finances and other business affairs,and (ii) all third-party information that Amazon is obligated to keep confidential. Confidential Information may be »We want you to learn more about ourcontained in tangible materials, such as drawings, data, specifications, reports and computer programs, or may bein the nature of unwritten knowledge.2. Exclusions. Confidential Information does not include any information that (i) is or becomes publicly businessavailable without breach of this Agreement, (ii) can be shown by documentation to have been known to Supplier atthe time of its receipt from Amazon, (iii) is received from a third party who did not acquire or disclose suchinformation by a wrongful or tortious act, or (iv) can be shown by documentation to have been independently »We ask that this presentation and itsdeveloped by Supplier without reference to any Confidential Information.3. Use of Confidential Information. Supplier may use Confidential Information only in pursuance of itsbusiness relationship with Amazon. Except as expressly provided in this Agreement, Supplier will not discloseConfidential Information to any person or entity without Amazon’s prior written consent. Supplier will take all content be shared only with personsreasonable measures to avoid disclosure, dissemination or unauthorized use of Confidential Information,including, at a minimum, those measures it takes to protect its own confidential information of a similar inside your company who have a neednature. Supplier will segregate Confidential Information from the confidential materials of third parties to preventcommingling. Supplier will not export any Confidential Information in any manner contrary to the exportregulations of the United States. to knowAMAZON EU SARL CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates 2
    3. 3. Agenda »Retail is Evolving »The Vision »Why Amazon »Myths vs. Reality »Work with USAMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates 3
    4. 4. E-Commerce Growth Driver Consumer shopping behavior is changing RETAIL IS EVOLVING TIMEAMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates 4
    5. 5. The State of e-Commerce E-Commerce Q4 2011 YoY Growth growth significantly 14% exceeds 3% the growth of total retail E-Commerce Retail Growth1 Sales Growth1 -comScore, August 2011Source: 1. ComScore “State of the U.S. Online Retail Economy in Q4 2011,” January 2012;Note: Retail growth does not include auto sales, gas, or food and beverage.AMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates 5
    6. 6. Online Research Influences Offline Sales $2,000 52% 53% $1,800 51% 52% $1,600 51% $1,400 49% 50% $1,200 49% $1,000 48% $800 46% 47% $600 46% $400 $1,347 $1,458 $1,553 45% $1,229 $200 44% $218 $239 $259 $279 $0 43% 2012 2013 2014 2015 Web-Influenced Retail Sales(000) Online Retail Sales US online and Web-influenced retails sales as a % of total salesSources: Forrester Research Web-influenced Retail Sales Report, 2010 to 2015 (US), Jan 2011AMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates 6
    7. 7. Ecommerce Empowers Customers Traditional Distributor E-Commerce Decision Garage Decision End User End UserAMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates 7
    8. 8. Top Global Retailer Brand #1 Global Retailer Brand:Sources: Millward Brown Top 100 Most Valuable Global Brands 2011AMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates 8
    9. 9. Amazon’s Large and Active Audience Active Global Monthly Unique Avg. Daily Unique Avg. Visits per Customer Accounts: Visitors (US): Visitors (US): Visitor (US): 173MM 90MM 11.1MM 1 2 5.2 2 2 Age Composition of Household Income of % of Amazon Shoppers Amazon Unique Visitor’s2 Amazon Unique Visitor’s2 Who have Made an Online Purchase2 46% 8% 40% 33% 36% 37% 37% 27% 22% 14% 0-18 18-34 35-44 45+ <$25K $25K-$75K $75K + >$50 $50-$200 $200+ Amount Spent Note: Active Customer Accounts are unique email addresses that have placed an order in the last 12 months Sources: 1. Amazon Investor Relations; 2. ComScore PlanMetrix March, 2012.AMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates 9
    10. 10. Net Sales History $48.1 41% $50,000 $40,000 Growth in sales $34.2 YoY (2010-2011) $30,000 Millions $ $24.5 $20,000 $19.2 $14.8 $10.7 $10,000 $8.5 $6.9 $5.3 $3.9 $ 02 03 04 05 06 07 08 09 10 11 Media EGM OtherSources: Amazon Investor Relations 10
    11. 11. Much More Than a Bookstore Electronics & General Merchandise now account for 64% of Net Sales (as of Q2 2012) In Q2 2012, Worldwide EGM was $8.16 billionAMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates 11
    12. 12. start with the customer and work backwards —Jeff BezosAMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates 12
    13. 13. Amazon’s Vendor Vision Create strategic, long-term vendor relationships enabling our virtuous cycle of value, selection & convenienceAMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates 13
    14. 14. Part Finder on Amazon.comAMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates 14
    15. 15. Part Search ResultsAMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates 15
    16. 16. Part Detail PageAMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates 16
    17. 17. Full Selection Part finder allows customers to find every possible part out of millions of application specific parts Offering your full selection on Amazon is important: if your part is not there, somebody else’s will beAMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates 17
    18. 18. Full control over your product information 100% on-message, all day, everyday, 24/7/365AMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates 18
    19. 19. Customer Reviews Increase trust in your brand and improve your sales 92% of consumers read product reviews when considering a purchaseSource: Channel Advisor Consumer Shopping Habits Survey 2010AMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates 19
    20. 20. How does Amazon promote Brands Search Search Amazon Engine Engine Prime Marketing Optimization Affiliate Vine Email Marketing Community MarketingAMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates 20
    21. 21. Myth vs. Reality Amazon doesn’t sell premium brands.AMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates 21
    22. 22. Myth vs. Reality Amazon is a: A. Retailer B. Marketing Channel C. Research Destination D. Digital Content Provider E. All of the AboveAMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates 22
    23. 23. Myth vs. Reality You are on-line. At Amazon you I do not plan have full control to go on-line over the customer experienceAMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates 23
    24. 24. What’s next? • Sign terms and conditions using Amazon Vendor Central • You create all detail pages in 5 languages in Amazon Vendor Central • Amazon makes initial stock-up PO based on your advice • Additional inventory is ordered based on customer demand and customer visits to your detail pagesAMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates 24
    25. 25. For more information contact» Michal Bohosiewicz – Sr. Vendor Manager» +352 691 999 864» michal@amazon.lu
    26. 26. APPENDIX
    27. 27. Adjusting Your Strategy for Online RetailingAmazon is Different: successful vendors who partner with us keep these differences in mind. Amazon Differences Winning Manufacturer Approach 1. New Retail Channel Redesign your partnering strategy to reflect the new channel needs 2. Online Shelf Invest in appropriate ―e-packaging‖ for your customers 3. Consumer Direct Supply Chain Optimize for the radically different product flow 4. Merchandising and Marketing Leverage the Amazon customers/viewers to the Environment fullest extent 5. Platform for Innovation Exploit the Amazon platform to create new capabilities, products, or businessesAMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates 27
    28. 28. Pitfalls to Avoid Common Pitfalls Considerations Simply offering the same -Make your entire assortment available on Amazon products and merchandising -Ensure appropriate packaging material developed for offline -Provide thoughtful and extensive digital content channel -Submit products well in advance to allow for pre-order Not reallocating funds from Funds and resources available for reinvestment include: unused offline-focused activities -Slotting Fees -Field support for in-store execution -Physical promotion support (mods, shippers, displays) -FSI coupons Underfunding new activities or -Support free shipping for heavy/bulky items new services not offered by -Take advantage of Amazon advertising opportunities offline retailers -Invest in Subscribe & Save, Free Financing, etc. Failing to take advantage of -Avoid unfavorable ―Channel‖ terms online efficiencies -Reconsider order minimums to optimize for the new flow -Offer returns, damage, and expired product allowancesAMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates 28
    29. 29. Keys to Your Success Collaboration Supports Both Online and Offline Sales Keys Give us best-in-class support by assigning your ―A‖ Team…direct contacts to Marketing, Merchandising, Brand, and Logistics teams Leverage Amazon.com as a customer education and marketing channel, not just a retailer Ensure that we have full-line selection Optimize your ―e-packaging‖ by loading your richest content Partner for logistics integration to ensure high ―in-stock‖ levels Launch new products in advance on pre-order Leverage cross-category branding opportunities Avoid complex and hard-to-implement policies Use our customer base for product and market input Use our analytical tools in conjunction with your offline effortsAMAZON SERVICES CONFIDENTIAL© 2012 Amazon.com, Inc. or its affiliates 29
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