Amazon Case

• Amazon's supply chain strategy

  Plays a crucial role in its overall success
• Amazon's supply chain strategy

  • Efficiently source, produce, and deliver a wide variety of products to customers around the globe
  • Helped Amazon become the preeminent e-commerce leader
• Fulfillment Process


  1. Inventory and storage

  2. Order placement

  3. Pick, pack & ship
• Fulfillment by Merchant (FBM)


  Brand uses its own warehouse or fulfillment provider to ship a product to the end customer
• Fulfillment by Amazon (FBA)


  Amazon handles order fulfillment, including picking, packing and shipping
• Multi-channel fulfillment


  Amazon can fulfill orders that originate from most online merchants, including a brand's direct-to-consumer website
• Amazon's warehousing strategy


  • Largest warehouses located near population hubs
  • Inventory split among warehouses to minimize delays
  • Warehouses optimized for efficiency
• Types of Amazon warehouses and fulfillment centers

  • Sortable fulfillment centers
  • Non-sortable fulfillment centers
  • Sortation centers
  • Receive centers
  • Specialty centers
• Amazon's delivery options


  • Free, two-day Prime deliveries
  • Amazon's own shipping options like drones and Amazon-branded trucks
  • Convenient delivery options like Hub Lockers and Amazon Key
• Amazon's customer service and returns

  • Strong customer service team
  • Comprehensive and user-friendly returns policy and process
• Amazon's use of technology

  • Robots, automated conveyor belts, and other technology in fulffilment centers
  • Advanced software for route and schedule optimization
  • Sophisticated algorithms and data analytics for inventory management and demand forecasting
  • Barcodes and RFID tags for tracking products
• Amazon has offered private label products in categories ranging from food to clothing to electronics
• There are well-documented questions about how Amazon's role as a marketplace and data-collection company may conflict with its aspirations to sell more of its in-house brands
• Current sellers should be aware of the industry climate and have a plan to respond in ways that will grow their businesses