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Amazon distribution channel

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Amazon distribution channel

  1. 1. Distribution Channel of SATHIYA SORUBAN.E II nd Yr MBA
  2. 2. What is DISTRIBUTION ?• Right product• Right quantity• Right place• Right timeCHANNEL ???? “HOW”
  3. 3. The major functions include• order processing• warehousing• inventory management• transportation
  4. 4. HI(STORY) -founded in 1994 as by Jeff Bezos - based in Seattle, Washington the global leader in e-commerce 1995 the company went online pioneer in electronic commerce  build the world’s most customer–centric company To  establish a place where customers could buy anything To went public 1997Timely shipment satisfied customers  improved market share  repeat business “GET BIG FAST” increase the revenue per customer
  5. 5. Cntd…• Initially…online book retailer… no warehouse-no stocklocated close to INGRAM’s BOOK GROUP -physically handle and ship the books• Growth in domestic and international volumes• Amazon had to share its profit margins with Ingram• Ingram’s distribution capacity supports many other booksellers. Service issues for Amazon during peak demand -had to increase inventory levels and obtain strategically located distribution facilities
  6. 6. Timeline Amzon.com launch -1995- Music&video store -1998- Planetall,Junglee.com,bookpag launch es.co.in -1999- IMDB 3rd party selling -2003- CDnow Partner-toysRU -2004- Joyo.com Amazon publisher -2005- Booksurge Partner-Target -2006- Mobipocket Borders bookstore -2007- Shopmob Amazon auctions -2008- DPreview Kindle launch -2009- Abebooks, Audible.com, bookfinder.com Homegrocer- -2010- Zappos, drugstore.com amazon fresh Carsdirect.com -2011- Bookfinder.com,Woot, Quidsi, -2012- Kiva systems
  7. 7. PRODUCTS Books Movie, Music and Games Digital Download Kindle Computer And Office Electronics Home and garden Grocery, Health and beauty Toys, kids and baby Clothing, Shoes and jewelry Sports equipment and wears Tools, Auto and industrial
  8. 8. Five international stores of Amazon.comAmazon Canada, Amazon France, Amazon UK, Amazon Japan, Amazon Germany.Reasons: The Mother-Tongue Issue The Shipping Issue The Currency Issue The Local Product Issue The National Pride Issue Proper inventory control
  9. 9. Marketing Domains1. Business to consumer (B2C)2. Business to business (B2B)3. Consumers to Consumers (C2C)4. Consumers to Business ( C2B)
  10. 10. Distribution Channel-Digital
  11. 11. Distribution Channel- On-line channel has significant cost benefit -E-Books-Kindle reader -AmazonMP3 & Cloud Player -Instant Video -Mac Dowloadstore -AppStore for android -Amazon Cloud drive -Amazon Game Studios & Softwares
  12. 12. Distribution Channel-Physical
  13. 13. Distribution Channel-• Centalized distribution centers• States and places of Tax Advantage – Faster response time – Lower transportation cost• Use a hybrid approach in stocking and pricing• Pricing varies for delivery options• Supply Chain Strategy – Pure pull – Pure push – Push-pull
  14. 14. -most advanced order processing andfulfillment operations "Amazons goal is to collaborate with our suppliers to increase efficiencies and improve inventory turnover,"
  15. 15. WHOLESALERINFORMATION PRODUCT AMAZON.COMINFORMATION PRODUCT CUSTOMER
  16. 16. -Large quantity of small parcels and WHOLESALER packages are involved in e-commerce related merchandiseINFORMATION PRODUCT -variety of delivery AMAZON.COM options, includingINFORMATION PRODUCT overnight and various international CUSTOMER shipping options
  17. 17. Direct Purchases PUBLISHER/ WHOLESALER SUPPLIER PRODUCTINFORMATION INFORMATION AMAZON INFORMATION PRODUCT CUSTOMER
  18. 18. gets paid before paying the distributor PUBLISHER/ WHOLESALER SUPPLIER PRODUCTINFORMATION INFORMATION AMAZON INFORMATION PRODUCT CUSTOMER
  19. 19. Distributer/ manufacturerDrop-shipping INFORMATIONchannel PRODUCT INFORMATION CUSTOMER
  20. 20. PUBLISHER/ WHOLESALER SUPPLIER PRODUCTINFORMATION INFORMATION SELLERS CENTAL AMAZON Other Sellers INFORMATION PRODUCT INFORMATION CUSTOMER
  21. 21. -highly automated pick-pack-ship processes PUBLISHER/ WHOLESALER SUPPLIER PRODUCTINFORMATION INFORMATION AMAZON Other Sellers INFORMATION PRODUCT INFORMATION CUSTOMER
  22. 22. A Plethora of Approaches• Outsourcing / 3 PLs• Bar-Coding / RFID• Collaborative Transportation Management• Just in Time Inventory• Vendor Managed Inventory• Quick Response• Collaborative Planning, Forecasting and Replenishment• Activity Based Costing• Build to OrderPartnerships / Alliances• Auctions / Exchanges
  23. 23. Amazon has developed an extensive global distributionnetwork that continues to grow at a frenzied rate. ‘When you think of web shopping, you think of Amazon ’
  24. 24. THANKYOU

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