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Amazon.Com in China - Brief Analysis on Its Supply Chain Management Strategy & Proposed Recommendations

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Amazon.Com in China - Brief Analysis on Its Supply Chain Management Strategy & Proposed Recommendations
Chen Nanyou
Du Huanhuan
Gao Yilei
Guo Jing
Hong Jingqing
Ker Qian Yin
National University of Singapore

Part 1: Introduction to Amazon China’s Background and its Supply Chain
Amazon was founded by Jeff Bezos in 1995, started as an online bookstore with a vision to become the Earth’s biggest bookstore. It was soon diversified into selling DVDs, software, video games, electronics, and etc while the company’s positioning changed to the Internet’s No.1 retailer. In 2001, Amazon set a new goal as the Earth’s most customer centric company. Ever since, building up a customer-centered service business enterprise is the development direction of Amazon. Soon after gaining a firm footing in Europe, Amazon eyed on China as its next expansion target with huge market and great potential. In 2004, Amazon acquired Joyo.com, one of the largest online shopping malls in China located in Beijing, as its subsidiary in China. Joyo.com domain was officially renamed to Amazon.cn in 2007 and its Chinese name was changed to Joyo Amazon. It expanded rapidly and constructed new Distribution Centers (DCs) all over China to build up the infrastructure of Amazon’s B2C business. In 2011, Joyo Amazon was renamed to Amazon China which signified great important attached from Amazon headquarter, as well as its determination of long-term investment and support to Amazon China.
As a B2C e-commerce online shopping enterprise, Amazon China currently has approximately 2.6 million types of commodities in 28 categories. There are three typical logistics models of B2C e-commerce: the third-part logistics model, the self-run logistics model and joint distribution model. Amazon China adopts a combination of self-run model and third-part logistics model. This is to minimize the risks, costs and delivery time to meet to unique demand of Chinese customers, which is to be able to receive the product they ordered within one day. Mostly Amazon China would use its own logistics to deliver the goods,
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