Amazon has built an extensive global distribution network to support its e-commerce business. It operates numerous fulfillment centers worldwide that use highly automated processes to pick, pack, and ship a large volume of small parcels. Amazon obtains inventory through various channels, including direct purchases from publishers/suppliers, dropshipping, and third-party sellers. It aims to collaborate closely with suppliers and partners to increase efficiencies and optimize inventory levels through just-in-time and vendor-managed approaches. Amazon's distribution network is key to providing customers with a wide selection of products and a plethora of delivery options.

1. Distribution Channel of
SATHIYA SORUBAN.E
II nd Yr MBA

2. What is DISTRIBUTION ?
• Right product
• Right quantity
• Right place
• Right time
CHANNEL ????
“HOW”

3. The major functions include
• order processing
• warehousing
• inventory management
• transportation

5. 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 1997
Timely shipment satisfied customers  improved market share  repeat business
“GET BIG FAST”
increase the revenue per customer

6. Cntd…
• Initially…online book retailer…
no warehouse-no stock
located 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

7. 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

8. 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

9. Five international stores of
Amazon.com
Amazon 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

10. Marketing Domains
1. Business to consumer (B2C)
2. Business to business (B2B)
3. Consumers to Consumers (C2C)
4. Consumers to Business ( C2B)

11. Distribution Channel-Digital

12. 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

13. Distribution Channel-Physical

14. 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

21. -most advanced order processing and
fulfillment operations
"Amazon's goal is to
collaborate with our suppliers
to increase efficiencies and
improve inventory turnover,"

22. WHOLESALER
INFORMATION PRODUCT
AMAZON.COM
INFORMATION PRODUCT
CUSTOMER

23. -Large quantity of
small parcels and
WHOLESALER
packages are
involved in
e-commerce
related merchandise
INFORMATION PRODUCT
-variety of delivery
AMAZON.COM
options, including
INFORMATION PRODUCT overnight and various
international
CUSTOMER
shipping options

24. Direct Purchases
PUBLISHER/
WHOLESALER
SUPPLIER
PRODUCT
INFORMATION INFORMATION
AMAZON
INFORMATION PRODUCT
CUSTOMER

25. gets paid before paying the distributor
PUBLISHER/
WHOLESALER
SUPPLIER
PRODUCT
INFORMATION INFORMATION
AMAZON
INFORMATION PRODUCT
CUSTOMER

26. Distributer/
manufacturer
Drop-shipping INFORMATION
channel
PRODUCT
INFORMATION
CUSTOMER

27. PUBLISHER/
WHOLESALER
SUPPLIER
PRODUCT
INFORMATION INFORMATION
SELLERS
CENTAL
AMAZON Other Sellers
INFORMATION PRODUCT
INFORMATION
CUSTOMER

28. -highly automated pick-pack-ship processes
PUBLISHER/
WHOLESALER
SUPPLIER
PRODUCT
INFORMATION INFORMATION
AMAZON Other Sellers
INFORMATION PRODUCT
INFORMATION
CUSTOMER

29. 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

30. Amazon has developed an extensive global distribution
network that continues to grow at a frenzied rate.
‘When you think of web
shopping, you think of Amazon ’

31. T
H
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K
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