AMAZON BUSINESS MODEL

According to the lecture taught 02/26/2016, Distribution Network Design, it is possible identify different networks of distribution according with the shipping strategy. This strategy is related with the business model. In the Amazon case it is possible analyse:

Business model

Web page

Business-to-Concumer (B2C)

http://www.amazon.com/

Business-to-Business (B2B)

http://www.amazon.com/b/ref=footer_B2B_MM?ie=UTF8&node=11436294011

Source: Own elaboration

Business-to-Concumer (B2C)

An organization that dynamize the exchange relationships between the consumer and her own business. Provider: business. End user: consumer.

Amazon support a seller create her own page on which she can list her products and serving consumers, although not directly. However, Amazon also offers its own products, both new and used, which consumers can purchase directly from Amazon.

b2c

Source: Reproduced from <http://www.tutorialspoint.com/e_commerce/e_commerce_business_models.htm>. Accessed: 02/27/2016.

Business-to-Business (B2B)

Represent the exchange relationships between business. Provider: business. End user: business.

The B2B ecommerce system provided by Amazon is addressed to all sizes of businesses, from SBA organizations to large enterprises. Specially manufacturers and distributors, professional sellers and vendors. Businesses can register for a Professional Selling Account or as a Vendor on Amazon.

b2b

Source: Reproduced from <http://www.tutorialspoint.com/e_commerce/e_commerce_business_models.htm>. Accessed: 02/27/2016.

How to generate value in this process?

At the Amazon Business Model Canvas it is possible identify the significance of the logistics partners (own logistics, Fedex, UPS) and the network of sellers, as far as key partners. The physical warehouses distribution and the web application and development are key resources. In relation with the cost structure the low cost structure, IT and fulfillment infrastructure and the economies of scale are the pillars of this model.

Canvas

Source: Reproduced from <http://www.slideshare.net/dipikaasahoo/amazon-46025736>. Accessed: 02/27/2016.

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