30 days The document discusses confidential information that may be shared between Amazon and a supplier. It defines confidential information as non-public information relating to Amazon's business plans, technology, customers, finances and third party information Amazon is obligated to keep confidential. It specifies that confidential information is not publicly available information, information already known to the supplier, information from a third party not obtained wrongfully, or independently developed by the supplier. The document states that the supplier may only use confidential information for its business relationship with Amazon and may not disclose it without permission, and that the supplier must take reasonable measures to protect confidential information.

1. Confidentiality: The Short Version
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 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 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 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 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 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 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.
• Information we are sharing with you is
confidential
• We want you to learn more about our
business & our plans
• We ask that this presentation and its
contents be shared only with persons
inside your company, who have a need to
know
Amazon Services Confidential
1

2. An invitation to
2

3. Agenda Slide
•
An Introduction to Amazon.com
•
Online Retailing Challenges & our proposal
•
Amazon Seller Services – How we can help you grow your business
•
Selling on Amazon & Fulfillment by Amazon
•
The Value Proposition
•
Commercials (Pricing of Amazon services)
•
Amazon.in Seller Policies
•
Next Steps
Amazon Services Confidential
3

4. An introduction to
4

5. Amazon’s Strategy…
We strive to be Earth’s most
Customer-Centric Company
Build a place where people can find and
discover anything they want to buy
online
Relentless focus and innovation based
on a core set of customer needs:
•
•
•
“Start with the customer and work
backwards.”
- Jeff Bezos, Founder and CEO
Selection
Value
Convenience
5

6. : How we seek to help grow your business
Service
How we help you
Available in
India
Sell your products on
Amazon.in
Amazon stores, packs, ships
and provides customer service
for your products
Increase traffic to your site
using ads that take consumers
to your product pages
Amazon customers pay on your
website using their Amazon
profiles
Build and operate your online
store using our all-in-one
e-commerce platform
Third Party Sellers contributed to 45% of Amazon’s units sold Worldwide in 2012
Amazon Services Confidential
5

7. Amazon’s current offerings in India
Businesses
Nearby
With SOA, List &
Sell your
products on
Amazon.in
You sell it, we ship
it. With FBA, store
your products in
Amazon fulfillment
centers, while we
pack, ship & provide
customer service
Reach millions of
online shoppers
with ads on
Junglee.com that
link to product
pages on your
website
Amazon Services Confidential
Advertise your
offline store on
Junglee.com;
reach buyers who
research products
& compare prices
online
7

8. Amazon Services Confidential
6

9. OFFLINE & ONLINE RETAILING
CHALLENGES & OUR PROPOSAL
Amazon Services Confidential
6

10. Limitations of offline retail
Reach
Cost of operations
Product display space
Inventory
management
Payment Options
 Reach limited to local customer base near the store
 Large marketing budgets required to expand reach to new
customers in other localities
 Significant incremental costs of setting up new stores – real
estate, manpower, overheads, etc.
 Range of products on display limited to physical shelf space
in store(s)
 Challenges & costs of managing inventory across multiple
stores
 Managing multiple banks & debit/credit card transactions
 High cost of credit card transactions
Amazon Services Confidential
10

11. Internet Growing Rapidly in India
• Growing trend of Indian offline retailers going online with
Offline
retailers
growing
online
their own sites, eg. JJ Mehta, Nalli Silks, Mom & Me.
• Traditional multi-brand offline sellers also going online with
Amazon.in, eg. Shoppers Stop, Croma, Vijay Sales,
Univercell, Kamdar & Kamdar.
11

12. Challenges faced by an Indian online retailer
High costs in going
and staying online
Customer Acquisition
& Conversion
 High Capital expenditure in technology, delivery infrastructure
 High Operational expenses in marketing, retaining employees
with technical expertise, scaling infrastructure with demand
 Customers are hesitant to adopt online platforms as they are
unsure about experiences like returns, warranty, on time delivery
etc…
 High customer acquisition costs
Payment Gateway
Challenges
 Inferior payment options lead to order cancellations, customer
dropouts and overall Suboptimal customer experience
Customer Service –
Expertise & Costs
 Customer Service brings customer retention & repeat purchases
 High employee costs in hiring & training personnel
Last mile delivery
issues
 High Fulfillment costs & High cost of customer returns
 Cash on Delivery inefficiencies  Lowers buying commitment,
increases returns & Adds collection charges
Amazon Services Confidential
12

13. SELLING ON AMAZON (SOA) &
FULFILLMENT BY AMAZON (FBA)
Amazon Services Confidential
13

14. Demo of amazon.in & Benefits
 Product Listings on Amazon
Platform
 Transaction on Amazon
Platform
 Credit/Debit Card, Net banking
& COD payment options
 Inventory Stocking in Amazon
Warehouse
 Amazon’s Guaranteed 1-Day
Delivery* for any seller using
FBA
Click the Image for a demo of the
amazon.in website
 Amazon Delivery Network +
Capabilities like Fast-track*
shipping
 Customer Service & Support
* Guaranteed 1-Day delivery and Fast Track shipping available in select cities
Amazon Services Confidential
14

15. SOA & FBA: The Value Proposition
Robust
Payment
Systems
Additional
Sales
Channel
No
upfront
costs
- No customer
acquisition costs
or capex towards
warehousing
- Reduced opex
towards delivery
network, human
capital and
customer service
Variable
Cost
Structure
- Enhanced
visibility to a
new range of
predisposed
consumers
- Opportunities to
Cross Sell & Up
Sell
- Pay as you go
– we make
money only
when you sell or
use storage
space
Amazon Services Confidential
Ease of
use
- Credit/Debit Card,
Net banking & COD
payment options
available on
robust payment
gateway
-
-
Use of Amazon
catalog; userfriendly panel to
manage orders,
inventory &
payments
Dedicated
seller support
team & Analytics
support
15

16. COMMERCIALS
Amazon Services Confidential
16

17. With Amazon you can focus on growing your business
FUNCTION
DESCRIPTION
YOUR
WEBSITE
PARTNERING
WITH
AMAZON
SOA+FBA
Product Sourcing
Selection plan and procurement
Pricing
Product and shipping pricing
Hardware, software, ongoing development and
maintenance
E-catalogue with rich product data, images and
reviews
√
Customer
Acquisition/
Marketing
SEO, SEM, Affiliate Marketing
√
Payments
E-payment integration, card and net banking
fees, payments fraud
Storage
Inventory storage and warehouse management
Delivery
Order handling, Pick and pack, Shipping, COD
Fees and Returns, Octroi
Customer Service
Phone, email and chat based customer service
Returns
Inbound customer returns and returns
processing
√
√
√
√
√
Technology
Catalogue
Seller does the work
√
√ Amazon does the work
Amazon Services Confidential
17

18. How Amazon’s tools & services will help you succeed
Monitor & promote your business by leveraging the features of Amazon Seller Central portal
Business Reports
Inventory
Management
Seller Support
Customer Contacts
Order
Management
Performance
monitoring
 Reports on high demand products category -wise
 Market information on price competitiveness
 Seller specific insights to promote sales in the listed & related category
 Add offers to
Amazon catalogue using feeds, spreadsheets, web
APIs & other tools
 Options to configure various means of promotion
 Dedicated seller support team on e-mail and phone correspondence
available 24X7
 Opportunity to view & respond to customer feedback
 Email sent whenever customer responds to a query
 E-mail/periodic alerts on orders & shipping deadlines
 Order/payment reports for accounting needs

Periodic notifications on performance metrics along multiple
dimensions
Amazon Services Confidential
18

19. Cost Comparison on Amazon promo rates
LINE ITEMS
COSTS -YOUR
SITE (INR)
Item Sale Price
Traffic
Payments
Packing and Labor
Shipping
Storage Fees
Customer Service
Cost of Returns
Service Tax
TOTAL*
Additional Charges
5300
393
122
35
70
4
1
7
0
632
Seller Paid Octroi
Bid Amount ($)
Bid Amount (INR)
Conversion Rate (%)
% of prepaid txns
% of COD txns
Prepaid txn charge (%)
COD txn charge (More than 30)
COD txn charge (Less than 30)
Packing and Labor
Shipping
Storage fees
Customer Service
LINE ITEMS
COSTS -SOA
(INR)
LINE ITEMS
Item Sale Price
Ref. Fee@5%
Closing Fee
Packing and Labor
Shipping
Storage Fees
Customer Service
Cost of Returns
Service Tax
TOTAL*
Additional Charges
5300
265
10
35
70
4
1
7
34
426
Seller Paid Octroi
Item Sale Price
Ref. Fee@5%
Closing Fee
Per Unit Handling Fee
P.U. Ship Fee
Storage Fees
COD + Octroi Service
Returns + CS
Service Tax
TOTAL*
Additional Charges
0.55
27.5
7
40%
60%
2.75%
2%
30
35
70
4
1
Weight of product (kgs)
Multiples of .5kg in prod
Space occupied (cu.feet)
COSTS - SOA+
FBA (INR)
5300
265
10
0
20
7.1
53
0
44
355
None
0.5
1
0.5
Legend:
Cost of selling on your channel:
Cost of selling via Amazon:
Amazon Services Confidential
19

20. Pricing for Selling on Amazon
SOA Referral Fees
(per Unit Sold)***
Promotional Rate
Standard Rate
(First Year)**
FEE
COST (INR)
Subscripti
on
Rs. 499/- per month
(applicable after June
5, 2014)
Books, Music & Movies
5%
12%
5%
8%
SOA
Referral
Share
Consumer Electronics
(includes Camera)
By Category (see
adjoining table)
5%
12%
Closing
Fee
Accessories (includes PC
Accessories, Electronic
Accessories & Mobile
Accessories)
Rs. 10/- per unit
Mobile Phones
4%
5%
Personal Computers,
Laptops & Tablets
4%
5%
Toys & Baby Products
5%
15%
Personal Care Appliances
5%
15%
Jewellery
8%
15%
Watches
Home & Kitchen
Beauty
Video Games - Console
8%
5%
5%
5%
15%
15%
15%
8%
Video Games - Games
5%
12%
Luggage
8%
15%
And Get:
Achieve National Presence
Sell in 15+ categories
Zero Cost of Traffic
Zero Cost of Payments
Amazon’s E-commerce
Technology & Catalog
 Fraud Protection
 Benefit of Zero Subscription
Fee & Reduced Referral
Shares*





* Zero Subscription Fee applicable till June 5, 2014
** Reduced Referral Shares applicable to different categories are as follows: Books &
Movies till June 5, 2014; Consumer Electronics, PC, Tablets, Mobiles & Accessories till
June 25, 2014; Health & Personal Care till September 12, 2014; Jewelry & Watches till
September 19, 2014 & Home & Kitchen till September 26, 2014
*** Charges are exclusive of Service Tax @ 12.36%
Amazon Services Confidential
20

21. Pricing for Fulfillment by Amazon
You Pay:
Promotional
Rate (First
Year)
Standard
Rate
(Media^)
Standard
Rate (NonMedia^^)
Standard
Rate
(Oversize)
Pick & Pack Fee
(per Unit)
Free
Rs.10
Rs. 25
Rs. 50
Weight Handling Shipping Fee (per Unit)
And Get:



First 500 gms
Every
additional
500 gms
Rs.40
Rs. 45
Rs. 70
1% of Item
Value
1% of Item
Value
1% of Item
Value
1% of Item
Value

Storage Fee (per
Cubic Ft/Month)


Rs.20
Rs. 50 (for
oversize only)
Delivery Service
Fee (per Unit)




Rs.20
Rs. 35 (for
oversize only)
Free for the
first 3 months
Rs.14.20
Rs.14.20
Rs.14.20


Rs.40
Rs. 45
Rs. 100


Increased Order
Conversion
through FBA
branding*
Fast Track shipping
to select cities
Amazon’s
Guaranteed 1-day
Delivery to select
cities
No additional COD
or Octroi charges
Guaranteed
delivery &
trackable courier**
Trusted customer
service and returns
Insured shipment
High quality
packing material
Free storage for 3 months after your first shipment to the Amazon FC
Free FBA shipping for units > Rs. 20,000 (not for Oversize products)
Packing material weight – Media: 75 gms; Non-media: 100 gms & oversize: 500 gms
Oversize Defined as: Greater than Any Of the following – 12 kgs in mass OR 45cm on longest side OR 34 cm on
median side OR 26 cm on shortest side.
Per unit Removal charges: Media: INR 10; Non Media: INR 25 & Oversize: INR 50
All Charges are exclusive of Service Tax @ 12.36%
^Media Categories: Books, Movies, Music, Videogames & Software
^^Non Media: all other categories
* As observed on amazon.in as well as in other geographies
** In pin codes serviced by our couriers with trackable service
Amazon Services Confidential
15

22. AMAZON SELLER POLICIES
Amazon Services Confidential
22

23. MANDATORY POLICIES for sellers on Amazon.in
 All customer queries are to be responded to
within 24 hours
 Pre-fulfillment Cancelation rate* (seller-canceled
orders) to be less than 2.5%
 Late Shipment rate on all orders to be less than
4%
 For damaged/defective products, return pick-up
is to be arranged/paid for by the seller.
 Only products with India-specific manufacturer
warranty can be sold on Amazon.in
 Pricing of products on amazon.in is expected to
be equal to or lower than the price on your site
 Seller is expected to deliver pan India & bear
Octroi charges wherever applicable
 Requirement of UPC/EAN and bar codes to list
your products
 Manufacturers who wish to sell their own
products on Amazon.in are expected to have
trademark registered for their brand
Amazon Services Confidential
Amazon’s Return Policy for
different categories
Product
Category
“Change
of Mind”/
Unopened
Damaged/
Defective
Products
Books,
Movies & TV
Shows,
Music,
Beauty &
Health
7 days
30 days
Electronics,
Video
Games,
Toys, Baby,
Home &
Kitchen
10 days
10 days
Watches,
Fashion
Jewellery,
Luggage
30 days
30 days
23

24. Next steps
Confirm
interest
Designate
business and
tech points
of contact
Registration
and account
creation
Tax
registration
(only for
FBA)
Amazon Services Confidential
Onboarding
and
integration
Launch on
the Amazon
platform
24

25. THANK YOU
Amazon Services Confidential
25