A RESEARCH REPORT ON SUPPLY CHAIN MANAGEMENT

OF
AMAZON INDIA(MBDS5019)

Under the guidance of Submitted by:-SHIKHAR SRIVASTAVA

Dr. Ruchi Gupta 18GSOB2010103
MBA 2nd SEM BATCH-4
 Introduction

July 5, 1994 • Amazon Incorporated as “Cadabra”, By Jeff Bezos.

1995 • Website went Online as Amazon.com; Online Book Store

1998 • Acquired Junglee.com

2012 • Entered Indian E-commerce space as Junglee.com

2013 • Amazon.in launched

@Data Source: Amazon Corporate Website

India: The Big Opportunity for Amazon

Total E-Commerce Size ($ Billion)

Online Shoppers of Total
Internet Users (as a %)

Average Spending per Online Shopper in India

Investment Over $5 Billion

@Data Source: “e-Commerce in India: A Game Changer for the Economy”, CII, April 2016
 Amazon Invades India
nd
o B2C e-Commerce Market place; 2 largest Online Retailer in India.
o 55 million products across hundreds of categories.
o 1.3 Million Products in Fulfillment Center (26 FC in 10 States).

Customers Sellers

• Massive Selection • World Class e-commerce platform

• Low Prices • Large Base of Customers
• Fast & Reliable Delivery • Fast & Stress free shipping
• Trusted & Convenient Experience • No Fixed Cost
• Convenient Payment (Cash, • Secure & Timely Payment
Electronic) • Professional Services
Amazon India: Products, Services and Value Chain
Products

Kindle e-Readers & eBooks Value Chain

Computers & Accessories
Sports, Fitness & Outdoors
Handbags & Luggage Services
Amazon Apps
Sell on Amazon
Cameras, Audio & Video
Beauty, Health & Gourmet Fulfilment by Amazon

Books Pay with Amazon (Easy Ship)

Shoes
Sponsored Product
Clothing & Accessories
Movies, Music & Video Games Amazon Global Selling
Home, Kitchen & Pets
Jewellery, Watches & Eyewear
Car, Motorbike & Industrial
Mobiles & Tablets
@Data Source: Amazon India Corporate Website, Store Directory
Toys & Baby Products
Unveiling Supply Chain of Amazon India
With respect to their different services
Selling on Amazon (Sell Smart. Sell on Amazon.)

Set up Store on Receive orders Amazon delivers

Amazon from Customers Orders
Amazon Easy Ship
Fulfillment By
Amazon

Receive payment Help to Grow

from Amazon Business Expand Globally

@Data Source: Amazon India Corporate Website

How Amazon help to grow Sellers’ business?

Advantages

Set up your store Crores of customers across the world

Sit back and relax Fast and Stress free Shipping

Hassle-free Payments No fixed costs. Pay when you sell.

Sell Globally Secure and Timely Payments

Professional services
Fulfillment By Amazon (FBA)
1. Sellers send products
to an Amazon 2. Amazon stores
fulfillment center or Sellers’ products –
schedule a pickup from a single unit to
your entire inventory

3. Customers order
Sellers’ products from
Amazon, often with
fast, free delivery

4. Amazon packs and 5. Amazon’s customer

ships Seller’s products service and delivery
from fulfillment center to creates loyal, happy
the customer customers

@Data Source: Amazon India Corporate Website

Fulfillment By Amazon (FBA)

Seller

INFORMATION PRODUCT

FC
INFORMATION PRODUCT

Customer
Advantages of FBA- “You sell it, we ship it.”

Customers keep
Focus on your coming back for
business more

Cash on delivery
Build Trust payments

Pay as you go Amazon Prime

 Amazon Easy Ship

1. Customer orders 2. Sellers schedule the 3. Amazon Easy Ship 4. Amazon Easy Ship
from Sellers using Pay pickup and keep the delivery associate delivers the package to
with Amazon. Sellers product packaged and picks up the package the customer and picks
get a notification of the ready. from Sellers’ doorstep. up Cash on Delivery
order via email, Seller (COD) payments.
Central.

@Data Source: Amazon India Corporate Website

Amazon Easy Ship

Seller

INFORMATION PRODUCT

INFORMATION PRODUCT

Customer
 Amazon Global Selling

Selling on Amazon & Fulfillment by Amazon

Customers order Seller’s products on Amazon.com
Expand business to
the US and other
International Market
Sellers can either choose to fulfil those orders on
their own or use Fulfilment by Amazon (FBA).

Showcase products to Fulfil orders on their own: sellers will fulfil orders
millions of customers from India when a customer buys sellers’ products on
Amazon.com

Increase sales by tapping into FBA: sellers store their products in Amazon's
the US & International holiday fulfilment centres, and Amazon will pick, pack, ship,
season and provide customer service for these products.

@Data Source: Amazon India Corporate Website

Amazon Seller Flex

Warehouse Supplier

PRODUCT
INFORMATION

INFORMATION PRODUCT

Customer
Strategic Partners of Amazon

Amazon will use P&G’s warehouses for faster and economical product
distribution.

Amazon will use Future Group’s strong product knowledge,

extensive brand portfolio and sourcing base.

Amazon will use SBI’s smooth & trusted payment solutions for
small businesses and end customers
 Fulfillment Centers of Amazon
Fulfillment Center: 21

New Fulfillment Center: 5

Delivery Station: 4

86% Sellers of FBA

1.3 Million Products are available for
Immediate Shipping

Largest FC in Sonipat, Haryana Space: 200000

Sq. Ft. Capacity: 800000 Cu. Ft.

Year end 2016: Combined Storage Capacity 7.5

Million Cu. Ft.
@Data Source: MWPVL International
FC, New FC and Delivery Station of Amazon

@Data Source: MWPVL International

Evaluation of Amazon India’s Supply Chain

Hybrid Logistics Model

• Delivers some of the products itself, while delivering some products sold by suppliers
on its marketplace using other logistics firms.

Amazon SCOT (Supply Chain Optimization Technology)

• “Innovating to get customers what they want, when they want it.”
• Using machine learning, data analytics, and complex simulations.

Managed Marketplace Model

• Seller is free to choose self-fulfilment or marketplace-fulfilment.

• Infused inventory-led in a marketplace by having operational control over seller
entities like Cloudtail (Amazon).
The Game Plan of Amazon India: Wining India
• 65 % Orders (2015) are from Tier II & III
cities

• Engaged in Pilot Project of Rural Delivery

Network in Tier III & IV cities with Connect
India E-Commerce Pvt. Ltd. (of Basix
Group)
 Amazon India: Wining India

Amazon Chai Cart

• Three-wheeled mobile carts to navigate in a city’s business districts, serve tea, water,
and lemon juice to small business owners and teach them about selling online.
• Team travelled 15,280 km across 31 cities, served 37,200 cups of tea, engaged with
over 10,000 sellers (in 4 Months)

Amazon Tatkal
• A studio-on-wheels offering a suite of launch services.
• Enables small businesses to get online in less than 60 minutes.

Easy Ship
• Deliver products in over 19,000 pin codes using Amazon Transportation Services,
Blue Dart, and India Post.
• Most penetrated e-commerce platform in the country.
 Our Suggestion

Multiple Hub & Spoke Model

• Customer Consideration, Vendor Consideration, Geo-Political Consideration,

Logistics Consideration.

A fully grown in-house logistic arm

• Better control, Business Diversification.

• Improved Delivery, Cost and Services.

More Investment in Supply Chain to penetrate Rural India

• Tie up with Home-Grown Logistics Firm & Start-Ups.

 Conclusion
“Be afraid of Our Customers, because those are the folks who have the money. Our Competitors
are never going to send us money” …… Jeff Bezos

Supply Chain of Amazon India

Ready with

EVERYTHING
EVERYWHERE
EVERYTIME
Thank You