SupplyChain Magazine November 2019 | Page 46

PROCUREMENT TRANSFORMATION
relationships with brands to a marketplace model where today over 50 % of units sold on Amazon are actually sold by third party merchants on Amazon ’ s marketplace . I believe that part of the reason for a big shift in the makeup of third-party sales versus first party retail sales is Amazon ’ s fulfilment capabilities .”
“ In short , I believe that Amazon is definitely a fulfilment company ,” she summarises . “ Based on the fact
that they not only fulfil their own items purchased from brands as a first party , they also open up their fulfilment centre network to third party merchants and allow these merchants to leverage Amazon ’ s fulfilment infrastructure . It ’ s very similar to what they did with AWS , which is an enormous and very profitable part of their business . They created their own cloud computing infrastructure to be used internally within Amazon . This then
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“ AMAZON NOW OFFERS A ONE-DAY DELIVERY OPTION FOR PRIME MEMBERS , IN A BID TO DEAL WITH THE QUICK TURNAROUND AND PROCESS ORDERS MORE EFFICIENTLY ”

NOVEMBER 2019