Customer Fulfillment in the Digital Economy Amazon.Com

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Customer Fulfillment in the Digital Economy

E-tail Customer Fulfillment Networks Pioneer
“The logistics of distribution


are the iceberg below the
waterline of online bookselling.”1

B-web type

—Jeff Bezos,
founder and CEO,

• Aggregation (e-tail) /Agora
(auctions, Zshops) hybrid model


“Ten years from now, no one
will remember whether

Consumers and business buyers

Context providers

Content providers and small online
merchants (
associates, Zshops, auctions)
Suppliers and b-web partners
(publishers; producers [OEM];
distributors e.g. Ingram Micro,
Baker & Taylor Books, and others)

Customers spent an extra
$100,000 upgrading shipping
from the West Coast to the East
Coast. All that will matter is
whether electronic commerce

gave people a good or bad
—David Risher,
senior vice president for

Commerce services

Infrastructure providers

“This [the
distribution warehouses and
CFN] is the fastest expansion of
distribution capacity in
peacetime history.”3
—Jeff Bezos,
founder and CEO,

Offering and online
merchants (
associates, Zshops, auctions) and merchants
participating in auctions and
Third party shippers (UPS & USPS)
Drop shippers such as Ingram
Technology providers such as
Oracle, Net Perceptions, and i2
Third party shippers (UPS, USPS)
The largest online e-tailer of books,
music, videos, toys, and gifts
Recently expanded service offering
to include auctions (March 1999)
and Zshops (September 1999)—an
aggregation of merchants on its
Web site
Aspires to become a one-stop shop
for merchandise on the Web

CFN value proposition

“Earth’s largest selection” of
merchandise at competitive prices,
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