More Related Content Similar to Grow your Amazon business with this confidential overview Similar to Grow your Amazon business with this confidential overview (20) 2. Confidentiality: The Short Version
»Information we are sharing with you is
1. Confidential Information. As used in this Agreement, “Confidential Information” means all nonpublic
information relating to Amazon or disclosed by Amazon to the above-referenced company, its affiliates or the
agents of any of the foregoing (collectively, “Supplier”) that is designated as confidential or that, given the nature of
confidential
the information or the circumstances surrounding its disclosure, reasonably should be considered as
confidential. Confidential Information includes, without limitation (i) all nonpublic information relating to Amazon’s
technology, 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 our
contained in tangible materials, such as drawings, data, specifications, reports and computer programs, or may be
in the nature of unwritten knowledge.
2. Exclusions. Confidential Information does not include any information that (i) is or becomes publicly
business
available without breach of this Agreement, (ii) can be shown by documentation to have been known to Supplier at
the time of its receipt from Amazon, (iii) is received from a third party who did not acquire or disclose such
information by a wrongful or tortious act, or (iv) can be shown by documentation to have been independently
»We ask that this presentation and its
developed by Supplier without reference to any Confidential Information.
3. Use of Confidential Information. Supplier may use Confidential Information only in pursuance of its
business relationship with Amazon. Except as expressly provided in this Agreement, Supplier will not disclose
Confidential Information to any person or entity without Amazon’s prior written consent. Supplier will take all
content be shared only with persons
reasonable 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 need
nature. Supplier will segregate Confidential Information from the confidential materials of third parties to prevent
commingling. Supplier will not export any Confidential Information in any manner contrary to the export
regulations of the United States.
to know
AMAZON EU SARL CONFIDENTIAL
© 2012 Amazon.com, Inc. or its affiliates
2
3. Agenda
»Retail is Evolving
»The Vision
»Why Amazon
»Myths vs. Reality
»Work with US
AMAZON SERVICES CONFIDENTIAL
© 2012 Amazon.com, Inc. or its affiliates
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4. E-Commerce Growth Driver
Consumer shopping behavior is changing
RETAIL IS EVOLVING
TIME
AMAZON SERVICES CONFIDENTIAL
© 2012 Amazon.com, Inc. or its affiliates
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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 2011
Source: 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
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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 sales
Sources: Forrester Research Web-influenced Retail Sales Report, 2010 to 2015 (US), Jan 2011
AMAZON SERVICES CONFIDENTIAL
© 2012 Amazon.com, Inc. or its affiliates
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7. Ecommerce Empowers Customers
Traditional Distributor E-Commerce
Decision
Garage
Decision
End User End User
AMAZON SERVICES CONFIDENTIAL
© 2012 Amazon.com, Inc. or its affiliates
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8. Top Global Retailer Brand
#1 Global Retailer Brand:
Sources: Millward Brown Top 100 Most Valuable Global Brands 2011
AMAZON SERVICES CONFIDENTIAL
© 2012 Amazon.com, Inc. or its affiliates
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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
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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 Other
Sources: Amazon Investor Relations
10
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 billion
AMAZON SERVICES CONFIDENTIAL
© 2012 Amazon.com, Inc. or its affiliates
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12. start with the
customer
and work backwards
—Jeff Bezos
AMAZON SERVICES CONFIDENTIAL
© 2012 Amazon.com, Inc. or its affiliates
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13. Amazon’s Vendor Vision
Create strategic, long-term vendor relationships
enabling our virtuous cycle of
value, selection & convenience
AMAZON SERVICES CONFIDENTIAL
© 2012 Amazon.com, Inc. or its affiliates
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14. Part Finder on Amazon.com
AMAZON SERVICES CONFIDENTIAL
© 2012 Amazon.com, Inc. or its affiliates
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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 be
AMAZON SERVICES CONFIDENTIAL
© 2012 Amazon.com, Inc. or its affiliates
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18. Full control over your product information
100% on-message, all day, everyday, 24/7/365
AMAZON SERVICES CONFIDENTIAL
© 2012 Amazon.com, Inc. or its affiliates
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19. Customer Reviews
Increase trust in your brand and improve your sales
92%
of consumers read
product reviews
when considering
a purchase
Source: Channel Advisor Consumer Shopping Habits Survey 2010
AMAZON SERVICES CONFIDENTIAL
© 2012 Amazon.com, Inc. or its affiliates
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20. How does Amazon promote Brands
Search Search
Amazon
Engine Engine
Prime
Marketing Optimization
Affiliate Vine Email
Marketing Community Marketing
AMAZON SERVICES CONFIDENTIAL
© 2012 Amazon.com, Inc. or its affiliates
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21. Myth vs. Reality
Amazon
doesn’t sell
premium
brands.
AMAZON SERVICES CONFIDENTIAL
© 2012 Amazon.com, Inc. or its affiliates
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22. Myth vs. Reality
Amazon is a:
A. Retailer
B. Marketing Channel
C. Research Destination
D. Digital Content
Provider
E. All of the Above
AMAZON SERVICES CONFIDENTIAL
© 2012 Amazon.com, Inc. or its affiliates
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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
experience
AMAZON SERVICES CONFIDENTIAL
© 2012 Amazon.com, Inc. or its affiliates
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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 pages
AMAZON SERVICES CONFIDENTIAL
© 2012 Amazon.com, Inc. or its affiliates
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25. For more information contact
» Michal Bohosiewicz – Sr. Vendor Manager
» +352 691 999 864
» michal@amazon.lu
27. Adjusting Your Strategy for Online Retailing
Amazon 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 businesses
AMAZON SERVICES CONFIDENTIAL
© 2012 Amazon.com, Inc. or its affiliates
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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 allowances
AMAZON SERVICES CONFIDENTIAL
© 2012 Amazon.com, Inc. or its affiliates
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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 efforts
AMAZON SERVICES CONFIDENTIAL
© 2012 Amazon.com, Inc. or its affiliates
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Editor's Notes 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.
