Presented to Dr. Ahmed Sobhy Prepared By: Tamer Ahmed Ragab – Merhan Salah Sherin Lowandi – Salma Saad 1 Amazon. com • 1995: Amazon.
com debuts on the Web. • 1997: The company goes public to becomes the ? rst Internet retailer to secure one million customers. • 1998: Amazon. com enters the online music and video business; companies are acquired in the United Kingdom and Germany. • 1999: The ? rm expands into selling toys, electronics, tools, and hardware; Bezos is named Time Magazine’s “Person of the Year.
” • 2001: Amazon. com reports its ? rst net pro? during the fourth quarter. Head Quarter 2 Amazon Start In 1995, Amazon.
com sold its ? rst book, which shipped from Jeff Bezos’ garage in Seattle.By Now Amazon. com sells a lot more than books and has sites serving seven countries, with 21 ful? llment centers around the globe totaling more than 9 million square feet – (836,127 M2) – of warehouse space. 3 Amazon. com Amazon has innovated around warehousing and operational ef? ciency. Amazon is focused on warehousing and lowering costs. the company has acquired software makers specialize in processes like high ef? iency inventory picking and inventory tracking.
4 Amazon. com Companies such as Target, Toys R Us, Old Navy, and many others have agreed to sell their items through Amazon. Although Amazon is not directly responsible for inventory through these companies, they do get part of the sales, creating a pro? t for all involved. 5 Amazon. com – FWS Flexible Scalable Reliable Secure ! Amazon, In 2006 announced it would start providing warehousing, delivery and other logistical support to small US businesses who sell on its websites.
The move comes as it battles Ebay, Google and Yahoo and others over the potentially lucrative sector. Amazon reported over 1. 3 million sellers sold products through Amazon’s World Wide Web sites in 2007.
6 – Why Amazon Build Ware Houses as it Grows? Amazon have a Huge choice of items, product range and variety. Amazon’s supply chain is so tightly integrated that when an online customer buys a couple of books and a CD, the ordermanagement system communicates with inventory- and warehouse-management systems to ? nd the optimal distribution center or centers for ful? ling the order. The customer knows in less than a minute how long it will take to ship the items and whether they will come in one package or separately.7 – How many Ware Houses Should it have and where Should they be located? Ware Houses should be as much as needed to facilitate the orders response & delivery time. In all the main central areas covering local and international regions. The ware houses should be located near to the airport and the Courier Hup Centers, to Facilitate and decrease the Shipping time for Local & international orders. 8 Should amazon stock every book it sells ? If Amazon stocked every book it sells, it would need a warehouse the size of Nevada and It would also have gigantic inventory costs. Amazon uses three basic methods for selling books (1) standard inventory (2) “just in time” inventory (3) third party sellers.
9 – Should amazon stock every book it sells ? Amazon has a physical inventory of the most popular books it sells. They are in a warehouse and shipped promptly when somebody orders them. Less popular books are subject to “just in time” inventory management.
Amazon doesn’t have the books, but has arrangements with the publishers to ship the books as soon as it receives orders. This results in a slight delay in shipping to the customer, but Amazon saves a lot of money in inventory costs; it doesn’t have to store the books or pay for them until it sells them. 10 – Should amazon stock every book it sells ? Finally, Amazon has a network of third party merchants who sell through Amazon.
These third party merchants generally specialize in out-of-print books or books that deal with relatively arcane subjects.Those books are shipped to the customer directly from the third party and are billed by the third party to the customer’s credit card or paypal account. Amazon takes a small commission for acting as a middleman. 11 – Advantage of selling books via internet vs. traditional bookstore Huge choice of items, product range and variety – online catalogue. The Possibility of Selling e-books which becoming more desired. Topic areas to browse, as well as lists of bestsellers, award winners, and titles that were recently featured in the media.Reviews and guides written by users who purchased the products you’re looking at.
12 – Advantage of selling books via Amazon. com Amazon knows you by name and tries to be your personal shopper. If you’ve been to Amazon. com before, you’ll also ? nd some recommendations just for you. Amazon. com offered a recommendation center. There a customer could ? nd books based on his or her mood, reading habits, or preferences also based on records of books the customer had purchased in the past.
13 – Advantage of selling books via Amazon. com Cont’Generally, A continuos innovative ways & services for enhancing the way & experience of each user in Interacting. 14 – Disadvantages of selling via internet vs. traditional bookstore .
Disadvantage can be relative in some aspects for some Customers Like: Lack of Physical view & test for the Product. Wait for Delivery, after order processing & shipping Cycle comparing to direct buying in traditional bookstore. The involvement of Online payments & security issues. 15 – What Advantage can Brick-and-Mortar players derive from setting up an online channel ?Improving and make use of the new market through offering online services for there customer and Offering e-books through Online store. Build a relation with there customer which will lead to make a community rising from the interaction between them. Offer dynamic tool to provide bene? ts & personalized experience to there customer . 16 – How should they use the two channels to gain the maximum advantage ? They Can Offer the Online Data Base and listing services, locating the Nearest stores Having the customer requirement and making a personal Experience.
Using both channel can enhance the performance by many ways through offering the advantage of Online sales & services with the key be? ts of the ordinary stores. 17 – Should Traditional Book Sellers Like Barner & Noble Integrate e-commerce in there current supply chain or managed it as separate supply chain? It should be integrated in the same chain to make use of the resources and to decrease the over all cost of warehousing and stocking. 18 – e-commerce products’ characteristics 19 Thanks 20