amazons impact - how they're changing the sales and distribution marketplace
TRANSCRIPT
©2009 Yeoman Technology Group – All rights Reserved
How the organization is changing the rules of sales and supply chain systems
©2009 Yeoman Technology Group – All rights Reserved
Review Amazon impact on your organizationFocus is for Manufacturers, Publishers, Hi-Tech
AgendaOverview
Amazon’s Model
Key Growth Drivers
Buyer Behavior
Competitive Reaction
Recommendations by Industry
Next Steps
©2009 Yeoman Technology Group – All rights Reserved
DirectMajor
E-Tailers
Bid / Auction
Supply Chain
Systems
Referral /
Associated
Knowledge / Social
Anywhere from 10 – 30% of a manufacturers sales comes from one of these channels
©2009 Yeoman Technology Group – All rights Reserved
DirectMajor
E-Tailers
Bid / Auction
Supply Chain
Systems
Referral /
Associated
Knowledge Centric
Social Centric
Each are distinct channels with their own group of competitors, systems, and links
©2009 Yeoman Technology Group – All rights Reserved
World’s Largest Marketplace
TodayLess than 50% of revenue is from books
1/3 revenue comes from ‘direct partners’
Partner sales up 19% Y/Y
Non retail customers fastest growing customers
Commercial
Gov/Ed
Health care
0%
20%
40%
60%
80%
100%
Q1 04 Q1 09
Media
General
©2009 Yeoman Technology Group – All rights Reserved
Leverage the traffic, the technology, and the infrastructure
©2009 Yeoman Technology Group – All rights Reserved
Traffic
• Encourage as many partners and categories as possible
• Easy to get on Amazon
Technology
• Private Label Sites (Target, Bebe, LaCoste)
• Quick Amazon Sites (Powered by)
Infrastructure
• Fulfillment Services (Warehousing, Pick/Pack/Ship)
• Cloud Initiatives (Storage, Development, CPU/DB)
©2009 Yeoman Technology Group – All rights Reserved
©2009 Yeoman Technology Group – All rights Reserved
Most behind in allowing marketplace style access
New programs are consumer centricWal-Mart
Sears
Others stuck in old modelDistributors
Specialty Sites
©2009 Yeoman Technology Group – All rights Reserved
Direct
ETailers
Bid
Supply Chain
Referral
Social
No!
Do you need to be thereUse three Ps
Need to be there
Need to rethink your product setCustomize for Amazon
Most customers are there
Leverage point for other channels
Option to avoid direct ecommerce
©2009 Yeoman Technology Group – All rights Reserved
• Heavy Presence
• Strong everywhere except groceryCustomers
• Strongest category
• Growth in private labelCompetitors
• Messy
• 2nd tier distributor
• 3rd tier resellers
Channel (Existing)
©2009 Yeoman Technology Group – All rights Reserved
• Growing Presence
• Growth in electronics and furnitureCustomers
• Lower amount of mfg
• Most rely on distributionCompetitors
• 2nd tier distributor
• 3rd tier resellers
Channel (Existing)
©2009 Yeoman Technology Group – All rights Reserved
Old “Retail” Style Lower cost “Online”
©2009 Yeoman Technology Group – All rights Reserved
• Heavy Presence
• It’s there bread an butterCustomers
• Core to strategy
• Kindle pushCompetitors
• Direct publishers
• Few distributors
• Specialty resellers / used
Channel (Existing)
©2009 Yeoman Technology Group – All rights Reserved
• Small but growing use
• Parts and supplies dominateCustomers
• LimitedCompetitors
• One or two distributors per category
• Poor representation
Channel (Existing)
©2009 Yeoman Technology Group – All rights Reserved
• Focus for Amazon
• Full range of products AND servicesCustomers
• Niche products lacking
• Major technology players directCompetitors
• Extra Messy
• 2nd tier distributor
• 3rd tier resellers / used
Channel (Existing)
©2009 Yeoman Technology Group – All rights Reserved
• Labs, Offices, and smaller Regional
• Equipment and SuppliesCustomers
• Very small group
• Bulk of product through distributorsCompetitors
• Several distributorsChannel (Existing)
©2009 Yeoman Technology Group – All rights Reserved
Where are your customers?The three P’s
Where are you on AmazonAre you there?
Are competitors?
Figure out how to get thereDirect
Existing Channel
Extend this logic to all sales channels