 Founded in 1994 by Jeff
Bezos.
 Based in settle washington.
 Global leader in e-
commerce.
 1995 the company went
online.
 Pioneer in electronic
commerce.
 To build the world’s most
customer – centric company.
 To establish a place where
customers could buy anything.

 Number of Indian customers who were using internet on a regular
basis to get information were increasing rapidly in 2012.
 Flipkart, an Indian e—commerce company had started off as an online
book seller. Flipkart had proved that Indian market is ready to face the
radical change in market place and a huge opportunity to e—commerce
businesses.
 In conditions like these, Amazon the worldwide leader in e—
commerce launched Junglee.com, empowering retailers in India to
publicize their items free of cost to a large number of Indian customers
and drove focused on activity to their stores.
 In early June 2013, Amazon launched their Amazon India marketplace
without any marketing campaigns. In July 2013, Flipkart announced a
funding of $1 Billion immediately after which, Amazon said it will invest $
2 Billion in India to expand businesses.

 Amazon came up with a dynamic distribution system because of
which they were able to deliver the products in as less as a day. This was
their USP along with the wide variety of products.
 This is a report that sheds light on the products and the services of
Amazon India, discussion on the channels adopted by them, the ATL and
BTL promotions and finally the evaluation of the channel effectiveness.

LIST OF THE PRODUCTS
 Amazon device accessories
 Amazon kindle
 Baby products (excluding
apparel)
 Books
 Camera and photo
 Cameras, camcorders and
telescopes
 Cell phones
 Consumer electronics
 Electronic accessories
 Office accessories
 Home appliances
 Music CDs, Cassettes and other
sound recordings
 Musical instruments
 Office product supplies, furniture,
printers and calculators
 Personal computers
 Software and computer games
 Sports exercise and fitness,
hunting accessories, team sports,
athletic apparel, boating and fishing
and game room.
 Tools and home improvement
 Video games and video game
consoles

SERVICES OFFERED BY AMAZON
 Selling On Amazon
 All types of businesses can sell products and services on Amazon
and it is one of the fastest ways to start selling online.
 Businesses can access a new sales channel.
 It helps in building brand recognition.
 The platform provided by Amazon is trusted and secured.
 Fulfillment by Amazon
 Amazon has helped the business enterprises to sell online globally.
 Reaching prime customers available on Amazon.
 Amazon offers fast and free shipping to customers.
 Trusted customers service and after sales return.

 Advertise on
Amazon
 Reach millions of Amazon
shoppers.
 Amazon helps to drive
traffic to your site.
 Amazon helps the business
enterprise advertise online
and across screens.

WHAT IS DISTRIBUTION?
 Right product
 Right quantity
 Right place
 Right time
CHANNEL????
“HOW”

FUNCTIONS
The major functions include:
 Order processing
 Warehousing
 Inventory management
 Transportation

MARKET STRUCTURE OF AMAZON
 Large number of firms leads to competition in the e--
commerce.
 Amazon faces a monopolistic competition in India.
 Consumer has a lot of choice in buying any product.
 Chooses the most profitable deal for its purchase.
 Companies are differentiated through selling costs.
 Selling costs constitute a substantial part of the total cost
under monopolistic competition.

LEVELS OF CHANNEL
 Online Channel
Significant cost benefit over
other traditional distribution
channels.
• E--books - kindle reader
• Amazon MP3 & Cloud Player
• Instant video
• Mac Download store
• App store for android
• Amazon cloud drive
• Amazon game studios &
softwares.
 Physical Channel
Half million square feet
storage capacity in distribution
centres.
Amazon's Next--Day and Same--
Day Guaranteed Delivery services.
34 fulfilment centres with more than
61 million cubic feet of storage
capacity.

INCENTIVE PLAN AND CHANNEL DISTRIBUTION

INCENTIVE PLAN
 India -- Amazon's third emerging market investment after
Brazil and China.
 Disagreement about the rate of commission may arise,
hence relationship of the agent is important to maintain
good delivery process.
 Comparative higher supply chain profits since distributor's
profit margin is the smallest.
 Third -- party sites that help drive customers to the e --
commerce platform for the fee.
 Offers its logistics network, online seller registration, high
margin advertisement services for sellers and brands.

DISTRIBUTION CHANNEL --
DIGITAL

DIGITAL CHANNEL
 E-Books-kindle reader
 Amazon MP3 & Cloud player
 Instant video
 App store for android
 Amazon Cloud Drive
 Amazon Game Studios
and softwares
“ON -- LINE CHANNEL HAS SIGNIFICANT COST
BENEFIT”.

PHYSICAL CHANNEL
 Centralised distribution channel
 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

Amazon's
goal is to
collaborate
with
suppliers to
increase
efficiencies
and improve
inventory
turnover
Have an
holding
inventory of 15
days and an
inventory
turnover of 26.
And also a
credit period
of 45 days
from its
suppliers.

CREDIT POLICY AND ROI
 The whole distribution channel works on the system of
commission and credit policy.
 Credit policy depends on the distributor and their
geographical area.
 Distributors will get commission not only for delivering
customers but also for other retailers.
 Credit policy of distributors depends on the type of good
sale.

Amazon Prime is a paid subscription program
from Amazon that gives users access to additional services
otherwise unavailable or available at a premium to regular
Amazon customers.
Amazon Prime Video has been
existing in India for the past few years.
It has also been confirmed by the
Amazon CEO Jeff Bezos that Prime Video
is quite successfulin India as compared
to the other global markets. The on-
demand video streaming service from
Amazon has a collection of exclusive
movies and TV shows.

AMAZON PRIME ONE MEMBERSHIP MANY BENEFITS
 FREE One-Day Delivery to eligible addresses.
 FREE Two-Day delivery to eligible addresses.
 FREE No-Rush Shipping to eligible addresses and avail
Rs.15 cashback.
 FREE Scheduled Delivery to eligible addresses.
 Free Same-Day Delivery to eligible addresses.
 Discounted Morning Delivery to eligible addresses at Rs.
50.
 No minimum order value required for FREE Standard
Delivery.
 Prime Early Access- Get early access to Lightning Deals
on Amazon.in.
 Prime Exclusive Deals - Get exclusive Lightning Deals and

 Prime Video- Get unlimited video streaming of latest
movies, award-winning Amazon originals and TV shows
from India and around the world.
 Prime Music - Get unlimited, ad-free access to
Playlists, Stations and millions of songs and albums at
no additional cost.
 Prime Reading - You can borrow eBooks, comics, and
more from the Prime Reading catalogue and read them
on your Kindle E-reader or the free Kindle reading apps
for Android, iOS, PC and Mac

AMAZON PRIME MEMBERSHIP COST
Prime Video lets users stream ad-free content
across various languages.
Amazon does not require you to pay any
additional cost to stream HD or 4K content.

Amazon Pay is a service that
lets
you use the payment methods
already associated with your
Amazon account to make
payments for goods, services,
and donations on third-party
websites, in apps, and using
Alexa. To make a payment,
you can use any of the
payment methods on file in
your Amazon account.

WHAT IS KNOW YOUR CUSTOMER (KYC)?
 “know your customer” may seem insignificant to most people, it
has a very important meaning in the business world. The process
of knowing your customer, otherwise referred to as KYC, is what
businesses do in order to verify the identity of their
clients either before or during the time that they start doing
business with them. The term KYC can also reference the
regulated bank practices that are similarly used to verify clients’
identities.
 Banks and companies of all sizes have become big supporters of
KYC. It is increasingly common for banking institutions, credit
companies, and insurance agencies to require that their
customers provide them with detailed information in order to
ensure that they are not involved with corruption, bribery,
or money laundering.

ADVANTAGES OF USING AMAZON PAY
 Amazon Pay has Amazon's 100% Buyer Protection
Guarantee.
 Quick & Easy Checkout.
 Add money in an instant from multiple payment
methods and use it whenever you want. But keep it in
mind that, Credit and Debit Cards issued outside India
cannot be used to Add Money to Amazon Pay balance.
 You can add up to a maximum limit of ₹20000 per
month.
 Check out for the offers now and then to get certain
Cashback to make purchases in future.
 Fast checkout plays a huge role in Flash Deals.

WHAT CAN YOU DO WITH AMAZON PAY BALANCE?
 You can Add more money or you can view statement for
further requirement.
 You can add your Gift Card / Voucher Code to Amazon Pay
Balance and the balance in it will be added to your account.
 You can do the Mobile Recharge with Amazon Pay Balance.
 You can Manage your Payment methods by editing payment
method or add a new credit or debit cards to your account.
 You can also Manage your Bank Accounts for Refund; that
is, to enable refund easily for cash on delivery orders and
more.
 You can shop instant vouchers from popular brands using
your Amazon Pay Balance.
 Amazon recently launched Recharge service for Pre-paid

 We can also pay the insurance premium on Amazon
pay and also earn rewards by paying insurance
premiums.
 By amazon pay we can also pay credit card bill.
 We can also pay using amazon pay upi to any
merchant and earn daily rewards upto Rs. 5-100.
 Now Amazon has launched a new feature i.e. we can
also do our fastag recharge using any debit or credit
card or amazon pay upi.
 By amazon pay we can also book our gas cylinder and
earn reward upto 10% for first time.

STRENGTHS OF AMAZON
 Pandemic: Lockdown measures prompted customers to shift to shop
online for things they would usually have bought from retail stores. In a
report from Facteus, consumer spending on Amazon is up by 70% year-
on-year.
 Market Share: According to emarketer, Amazon has 38.7% of the e-
commerce market. Nearly 2 in 5 people shop from Amazon. To give you
a scope of Amazon’s dominance, Walmart, which is in second place, has
only 5.3% of the e-commerce market.
 Diversification: Apart from e-commerce, Amazon is a key player in
digital streaming, cloud computing, and artificial intelligence.
 Customer Experience: The global tech giant has a core focus on
customer experience which in turn increases the amount each returning
customer spends at Amazon. Furthermore, customer benefits from
positive word of mouth which helps to further grow the business.

WEAKNESSES OF AMAZON
 Seller Relationships: Sellers on Amazon are concerned about the new
developments in inventory storage limits, faster delivery demands, threats from
“black hat” practices, and competition from Amazon’s private label of products.
If these concerns aren’t addressed, Amazon will fall out of favor; especially
when anti-Amazon companies such as Shopify, Etsy, and Walmart are nibbling
at Amazon’s heals.
 Employee Morale: An article on Verge states Amazon’s warehouse workers
are resorting to walkouts, strikeouts, and strikes to demand better health
protection and hazard pay. If the stress on efficiency overpowers the need for
well-being, Amazon could face major employee issues.
 Work Culture: Employees describe Amazon’s work culture as hyper-
competitive, critical, insensitive, and unfair. They also cite a lack of praise,
disregard for work-life balance, and lack of benefits as other aspects with which
they aren’t satisfied.
 Quality Focus: Amazon has its eyes on optimizing product search, ease of
buying, and delivery speed. As a result, Amazon is not able to monitor the
validity of claims or the quality of products sold on its platform. This could result
in people migrating to platforms with higher reliability.

OPPORTUNITIES OF AMAZON
 Package Delivery: Morgan Stanley has estimated that by 2022, Amazon’s
delivery network would grab $100 billion worth of business from the US
Postal Service, UPS, and FedEx. This year, Amazon is planning to open
1500 delivery hubs in cities and suburbs across the US.
 Amazon Fresh: Amazon’s latest undertaking, Amazon Fresh offers
seamless in-store and online shopping along with consistently low prices.
With its first store already open to select customers in Woodland Hills,
California, Amazon Fresh stores could be a game-changer for Amazon.
 Small Business Accelerator: Amazon has announced an $18 billion
investment to help small businesses sell to customers. The investments
include areas such as logistics, tools, education programs, services, and
people. The vision here is to accelerate the growth of existing sellers as well
as onboard 100,000 new sellers on the platform.
 Food Industry: Amazon’s venture into food delivery is another avenue to
leverage Amazon’s supply chain expertise. Zomato, India’s leading food
delivery company, has expressed concerns over Amazon entering this
lucrative business.

THREATS OF AMAZON
 Counterfeits: Amazon faces increasing pressure from the government to be
held liable for damages counterfeit products third-party sellers sell through
Amazon cause. Recently, a court ruled that Amazon is liable for the physical
injury and property damage resulting from an explosion that a counterfeit battery
sold on Amazon caused.
 Government Regulations: In the early months of the pandemic, the
Government of India banned the sales of non-essential goods on Amazon. The
ban resulted in a $398 million loss. Government policies also favored local
retailers more than it did the e-commerce industry. Such shifts in policies are
and will remain a major threat to Amazon’s growth domestically and
internationally.
 Quality Control: In 2020, according to Statistica, third-party sellers account for
53% of the products sold on Amazon. In a congressional hearing, Jeff Bezos
admitted to the possibility of even stolen goods being sold on Amazon. The lack
of accountability and supervision could lead to a drop in trust.
 Competition: Walmart announced the Walmart Fulfillment Service. With this
launch, third-party sellers now have an alternative to Amazon. Although the gap
in market share between Amazon and its closest rival is huge, the gap is
expected to shrink in the years to come.

• Amazon India’s decision to build a fully grown in
house logistic arm in two years
• Plans to dramatically multiply its headcount in
logistics and conveyance space in seven
months
• Amazon's more extensive method of reinforcing
its 'Easy Ship' offering
• Top e-business players Amazon, Flipkart and
Snapdeal are all reinforcing their
transportation benefits

Channel of Distribution of amazon

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