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“Work hard. Make history. Have fun."
1
HISTORY
Founded on 5 July 1994
Founder Jeff Bezos , a famous American entrepreneur.
Bezos incorporated the company as "Cadabra" on July
5, 1994.
In September 1994, Bezos purchased the URL
Relentless.com
The company went online as Amazon.com in 1995.
Started as an online bookstore.
2
Company Profile
 Type of Business: Public
 Type of Industry: E-Commerce
 Headquarters: Seattle, Washington, U.S
 Area served: Worldwide
Key people:
Jeff Bezos (Chairman, President and CEO)
Werner Vogels (CTO)
Andrew Jassy (CEO, AWS)
Jeff Wilke (CEO, Consumer)
3
AMAZONS PROFIT/DILEMMA
The Cloud is raining dollars on the e-behemoth, but
that's putting a new pressure on Jeff Bezos to return
value to shareholders.
4
Products and Services
 Products: Appstore, AWS, The Book Depository,
Game Studios, Video, Instant Video UK, Instant
Video German, Audible, Kindle, Fire, Lab126,
Studios, Twitch.tv, Woot, Echo, Shopbop, Askville
 Services: Online shopping, Cloud computing and
Content distribution
5
Income Summary & Financial
Statement
 Revenue: Increase US$135.98 billion
 Operating income: Increase US$4.186 billion
 Net income: Increase US$2.371 billion
 Total assets: Increase US$83.402 billion
 Total equity: Increase US$19.285 billion
6
No of Employees &
subsidiaries
341,000
A9.com, Amazon Web Services, Amazon
Elastic Compute Cloud, Alexa Internet,
Audible.com, comiXology, Digital
Photography Review, Goodreads, Internet
Movie Database, Junglee.com, Twitch.tv,
Zappos, Souq.com
7
Backward Supply Chain
 Involves independent distributor and supplier
to lower the production cost.
 Kept relation with the tradional publisher for a
fee.
 Publishes books by itself.
 Consumer to Business Transactions.
 Consumer to Consumers Transaction(C2C).
8
Forward Supply Chain
 Increased control over
supplier,manufacturer and distributor
 Moves down the product through various
channels
9
Reverse Supply Chain
 Product Acquisition: Collects goods from the
customers.
 Inspection & Sorting: Inspected & sorted out to
help the disposition of the goods.
 Reconditioning: Repaired, Refubrished,
Remanufactured, Disassembled and Recycled.
10
Warehouse Management
5 storage area:
1. Library primary storage-books and magazine
2. Cash flow primary storage-broken case and high
demand
3. Pallet prime storage-full case and high demand
4. Random storage-smaller items and modern
demand
5. Reserve storage-low demand / irregular shaped
products
11
CUSTOMER SERVICE:
The Order taking Process
 Amazon places the order in Pending status.
 Amazon verifies the order.
Three different status types in managing
order
Unshipped
Pending
Canceled
12
Continued….
 When payment is verified on an order,
Amazon does the following:
 Changes the status to Unshipped
 Sends an order confirmation to the buyer
with the estimated delivery date
 Sends an order notification to the
customer.
 The customer process the order. Once an
order is in Unshipped status, he must
either fulfill or cancel the order.
13
ORDER PROCESS
14
Order fulfillment by AMAZON
Not every product sold on Amazon is
stored and shipped by Amazon. FBM
(Fulfilled by Merchant) orders are shipped
by the seller directly to buyer.
Below points are for FBA orders:
Storing inventory in warehouse.
Packaging.
Locating the product and Shipping.
15
16
Delivery
 Free delivery
 Express delivery
 One day delivery
 Delivery of large items
 Delivery to prime members
 Standard delivery
Cost of returning the item
Return should be made before 30 days.
17
Complaints Handling
If there is any complaints e-mail at amazon-
payments-complaints@amazon.lu.
Considerable responding period: 10 days.
Resolving complaint within one month from the
date of receipt.
In case of dissatisfaction customers can further
complain to:
 Amazon Payment Europe Senior Management
 Commission de Surveillance du Secteur
Financier (CSSF)
18
Market expansion strategy
Amazon uses demographic & psychographics
segmentation to segment the markets.
Amazon’s segmentation is based on actual
purchase behavior, not what people might
have expressed interest in, but what they
actually did.
In order to differentiate itself, company acquired
many IT & e-commerce start-ups like
pets.com, audible.com, Junglee.com,
IMBD.com, Zappos.com etc.
Amazon has also achieved economies of scale
through extensive product offerings which
include electronics, toys and games, apparels,
DIY and many more.
19
Local & International Logistics
20
 Delivery Station: Amazon launched buildings near
to the large metropolitan cities and airports. The
prime role of these buildings is to sort packages
and most of them are carried by the local curriers.
 Hub Network: It also launched rapid distribution
network building in the centre of the large
metropolitan cities to enable Amazon Prime Now
Members to place orders for this merchandise and
receive rapid delivery in as little as 60 minutes
from the time of placements.
 The main transportations for the local delivery are
Van & Truck and for international delivery they go
with ship.
Ways of ensuring quality
products and services
 Core commitment to the customer.
 Corporate culture that knows how to listen.
 Power of DIY service to the user.
 Community of fellow customer support.
 Personal interactions.
 Buyer stay connection – wherever they are,
whenever they want.
 Relationships between customers and brands.
 Customer needs the driver of innovation.
21
PATH OF MAKING PROFIT
22
EXISTING BUSINESS
Media and Content
General Retail
Third Party Sellers
Amazon Web Services
Kindle Family
Prime
RECOMMENDATIONS FOR
POTENTIAL BUSINESS :
 Price Smarter, Not Harder
 Take Advantage Of Being The Only Seller
 Don’t Go Head To Head With The Big Guy
 Invest in the future with robotics
23
RECOMMENDATIONS:
We like to recommend ‘ROKOMARI.COM’ similar to
‘AMAZON.COM’
They are the largest book seller in Bangladesh.
We believe they have lots of potentials.
They can follow the strategy of Amazon and expand
the market worldwide…
24
THANK
YOUYOU
25

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Amazon Supply Chain

  • 1. “Work hard. Make history. Have fun." 1
  • 2. HISTORY Founded on 5 July 1994 Founder Jeff Bezos , a famous American entrepreneur. Bezos incorporated the company as "Cadabra" on July 5, 1994. In September 1994, Bezos purchased the URL Relentless.com The company went online as Amazon.com in 1995. Started as an online bookstore. 2
  • 3. Company Profile  Type of Business: Public  Type of Industry: E-Commerce  Headquarters: Seattle, Washington, U.S  Area served: Worldwide Key people: Jeff Bezos (Chairman, President and CEO) Werner Vogels (CTO) Andrew Jassy (CEO, AWS) Jeff Wilke (CEO, Consumer) 3
  • 4. AMAZONS PROFIT/DILEMMA The Cloud is raining dollars on the e-behemoth, but that's putting a new pressure on Jeff Bezos to return value to shareholders. 4
  • 5. Products and Services  Products: Appstore, AWS, The Book Depository, Game Studios, Video, Instant Video UK, Instant Video German, Audible, Kindle, Fire, Lab126, Studios, Twitch.tv, Woot, Echo, Shopbop, Askville  Services: Online shopping, Cloud computing and Content distribution 5
  • 6. Income Summary & Financial Statement  Revenue: Increase US$135.98 billion  Operating income: Increase US$4.186 billion  Net income: Increase US$2.371 billion  Total assets: Increase US$83.402 billion  Total equity: Increase US$19.285 billion 6
  • 7. No of Employees & subsidiaries 341,000 A9.com, Amazon Web Services, Amazon Elastic Compute Cloud, Alexa Internet, Audible.com, comiXology, Digital Photography Review, Goodreads, Internet Movie Database, Junglee.com, Twitch.tv, Zappos, Souq.com 7
  • 8. Backward Supply Chain  Involves independent distributor and supplier to lower the production cost.  Kept relation with the tradional publisher for a fee.  Publishes books by itself.  Consumer to Business Transactions.  Consumer to Consumers Transaction(C2C). 8
  • 9. Forward Supply Chain  Increased control over supplier,manufacturer and distributor  Moves down the product through various channels 9
  • 10. Reverse Supply Chain  Product Acquisition: Collects goods from the customers.  Inspection & Sorting: Inspected & sorted out to help the disposition of the goods.  Reconditioning: Repaired, Refubrished, Remanufactured, Disassembled and Recycled. 10
  • 11. Warehouse Management 5 storage area: 1. Library primary storage-books and magazine 2. Cash flow primary storage-broken case and high demand 3. Pallet prime storage-full case and high demand 4. Random storage-smaller items and modern demand 5. Reserve storage-low demand / irregular shaped products 11
  • 12. CUSTOMER SERVICE: The Order taking Process  Amazon places the order in Pending status.  Amazon verifies the order. Three different status types in managing order Unshipped Pending Canceled 12
  • 13. Continued….  When payment is verified on an order, Amazon does the following:  Changes the status to Unshipped  Sends an order confirmation to the buyer with the estimated delivery date  Sends an order notification to the customer.  The customer process the order. Once an order is in Unshipped status, he must either fulfill or cancel the order. 13
  • 15. Order fulfillment by AMAZON Not every product sold on Amazon is stored and shipped by Amazon. FBM (Fulfilled by Merchant) orders are shipped by the seller directly to buyer. Below points are for FBA orders: Storing inventory in warehouse. Packaging. Locating the product and Shipping. 15
  • 16. 16
  • 17. Delivery  Free delivery  Express delivery  One day delivery  Delivery of large items  Delivery to prime members  Standard delivery Cost of returning the item Return should be made before 30 days. 17
  • 18. Complaints Handling If there is any complaints e-mail at amazon- payments-complaints@amazon.lu. Considerable responding period: 10 days. Resolving complaint within one month from the date of receipt. In case of dissatisfaction customers can further complain to:  Amazon Payment Europe Senior Management  Commission de Surveillance du Secteur Financier (CSSF) 18
  • 19. Market expansion strategy Amazon uses demographic & psychographics segmentation to segment the markets. Amazon’s segmentation is based on actual purchase behavior, not what people might have expressed interest in, but what they actually did. In order to differentiate itself, company acquired many IT & e-commerce start-ups like pets.com, audible.com, Junglee.com, IMBD.com, Zappos.com etc. Amazon has also achieved economies of scale through extensive product offerings which include electronics, toys and games, apparels, DIY and many more. 19
  • 20. Local & International Logistics 20  Delivery Station: Amazon launched buildings near to the large metropolitan cities and airports. The prime role of these buildings is to sort packages and most of them are carried by the local curriers.  Hub Network: It also launched rapid distribution network building in the centre of the large metropolitan cities to enable Amazon Prime Now Members to place orders for this merchandise and receive rapid delivery in as little as 60 minutes from the time of placements.  The main transportations for the local delivery are Van & Truck and for international delivery they go with ship.
  • 21. Ways of ensuring quality products and services  Core commitment to the customer.  Corporate culture that knows how to listen.  Power of DIY service to the user.  Community of fellow customer support.  Personal interactions.  Buyer stay connection – wherever they are, whenever they want.  Relationships between customers and brands.  Customer needs the driver of innovation. 21
  • 22. PATH OF MAKING PROFIT 22 EXISTING BUSINESS Media and Content General Retail Third Party Sellers Amazon Web Services Kindle Family Prime
  • 23. RECOMMENDATIONS FOR POTENTIAL BUSINESS :  Price Smarter, Not Harder  Take Advantage Of Being The Only Seller  Don’t Go Head To Head With The Big Guy  Invest in the future with robotics 23
  • 24. RECOMMENDATIONS: We like to recommend ‘ROKOMARI.COM’ similar to ‘AMAZON.COM’ They are the largest book seller in Bangladesh. We believe they have lots of potentials. They can follow the strategy of Amazon and expand the market worldwide… 24

Editor's Notes

  1. https://www.amazon.com/gp/help/customer/display.html?ie=UTF8&nodeId=200168990
  2. https://www.amazon.com/gp/help/customer/display.html?ie=UTF8&nodeId=200168990
  3. http://www.shipstation.com/blog/inking-new-ideas/let-amazon-fulfill-your-orders-through-shipstations-new-fba-integration/
  4. https://www.amazon.co.uk/gp/help/customer/display.html/ref=hp_left_v4_sib?ie=UTF8&nodeId=201910300
  5. http://www.mwpvl.com/html/amazon_com.html
  6. http://www.mcorpcx.com/articles/8-customer-service-strategies-can-steal-amazon
  7. http://vator.tv/news/2013-11-25-how-does-amazon-make-money
  8. http://blog.wiser.com/how-to-increase-profit-and-revenue-on-amazon/ https://www.fool.com/investing/2016/09/22/5-stocks-with-amazon-like-growth-potential.aspx