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1、English for Academic Purposes (2013)Amazon s Logistics management systemChaocong Zhuang De Valera 08 .Aug. 2013A, Inc. is an electronic commerce (E-Commerce) in America. It is one of the world s largest online retailers. Statistics by Spiro showed that the company had sold products in all 5

2、0 states and in 45 countries in 2009, like America, Canada, and United Kingdom (Spiro, 2009). Amazon started as an online bookstore, then numerous commodities were on sale, like electronic products, furniture, food, and sports goods, etc. Since 2002, it has earned the fat profit (Barney, 2012). Beca

3、use of the internet and information bubble (dot-com bubble) from 1997 to 2000, many e-commerce companies went bankrupt, but Amazon survived (Johnson, 2010). The main factor leads to success of Amazon is Logistics transportation, which was treated as one of the largest obstacles in the development of

4、 e-commerce. This essay will discuss the features of logistics management in Amazon, and analyze how Amazon succeeds due to its specific logistics management.In the tough time of e-commerce (dot-com bubble), Amazon s strategy was unusual, it did not make any profits in these years. A case study from

5、 Chaffey, Amaz on put forward an inno vative promoti on strategy- provid ing the deliveryservice for free. If consumers purchase certain price of commodities, they will receive free-shipping service (Chaffey 2012). This measure promoted greatly the consumer s passionin shopping online, and reassured

6、 them the worry of high cost on online shopping. As a result, the growing consumer group brought great economic benefits. According to Spector s research, the client base of Amazon increased to 40 million, and the profits in the forth quarter of 2001 is 5 million dollar (Spector, 2002). The reality

7、of high prices in online shopping lead to the loss of consumers in many companies, such as P and Cisco, failed completely .In con trast, Amaz on used logistics as the promoti on strategy, which sold products at a lower price, mak ing less profit but the higher tur no ver. Therefore, it occupi

8、ed most of the market in on li ne shopp ing (Lash insky 2012). However, while bringing huge profits, this strategy is accompanied by risk. If Amaz on can not solve the cost caused by logistics strategy and remove the burden of finance, it will fail completely (Stanley and Thomas, 2002). To solve the

9、se problems, Amaz on took some measures which will be men ti oned below to decrease spe nding.Free delivery service was the key factor for Amaz ons success. However, it isalso a double-edged sword, because it in creases the high cost. Accord ing to Johnson, the method used by Amazon is to cut down t

10、he cost on financial management, like reducing spending, downsizing, using the advaneed order system to decrease mistakes, in tegrated delivery and sav ing inv esti ng costs, which can reduce the logistics cost (Joh nson, 2010). I n other words, Amaz on gains more sales profit through these methods

11、while the nu mber of con sumers in creases. Thus, a good cycle in bus in ess is created, but high requireme nt of the cost control ability and logistics system are also required. In addition, Amazon found a new way for profit growth. Second-hand products are available on Amazon. On the other hand, A

12、mazon cooperates with other compa ni es, collecti ng ren ts by sell ing their products. Moreover, the customers in Amaz on can purchase products from differe nt bran ds. It provides various products to attract more persons to shop, and reduces the inventory risk. These effective measures are the sec

13、urity for Amazon to run successfully promotion strategies.E-Commerce is based on moder n in formati on tech no logy and computer networks (Sandeep, 2002). The characteristics include trading virtualization, visualization, low cost and high efficiency. In e-commerce, the information, transaction and

14、cash flow can be finished on the internet. Only logistics can not be achieved on the internet (Jeff, 2012). As a result, logistics became the most indispensible part of e-commerce. The low efficiency of logistics will destroy the adva ntage of e-commerce such as economy, convenience and shortcuts. T

15、he success of Amaz on ben efited from its perfect logistic man ageme nt system.And that is why the logistic strategy can be used by Amazon. In order to reduce investment and operational risks, Amazon entrusted its domestic delivery service to the U.S Postal Service and UPS, and entrusted intern ati

16、onal service to intern ati onal shipp ing compa ni es. In additi on, Amaz on itself can concen trate on develop ing operati on and core bus in ess (Cali n, 2001). Because of the cooperation between companies, Amazon keeps a low inventory. In general, Amazon will pay the payment to the public 45 days

17、 after selli ng the books. Thus, the turno ver on inven tory and capital in creased, and sig nifica ntly enhan ced the effect of bus in ess. Although Amaz on operates many kinds of products, the price for products is reas on able, and the quality and delivery service can satisfy the customers. There

18、fore, it keeps a low rate on retur n of goods. The low ratio on retur ning of good not only reduces the cost of retur ning purchases, but also acquires a good bus in ess reputati on. In additi on, Amaz on built distributio n centre accord ing to differe nt kinds of goods, so the products ordered by

19、consumers may be distributed to different centers. In order to save time, the carrier loaded the same kind of good, which are bought by different persons, in the same car. It therefore saves a large amount of times in tran sport, and decreases the cost of tran sport. Fin ally, Amaz on provides choic

20、e about type and date of delivery to consumers. People can choose to receive their commodities by shipping or land transportation, and what time they want to receive their mercha ndises.In conclusion, Amazon shows the scientific logistics management system to the world. It provides convenient and fl

21、exible delivery service to consumers. Amazon is known for its low price and satisfactory service. It sets up a good image to costumers and stre ngthe ns their trust. The revelati on from Amaz on is the importanee of logistics in e-commerce. It is a good sample for other electro nic bus in ess en ter

22、prises to use for refere nee. They will be boo ming if they take logistics as their developme ntal strategy like Amaz on.Refere ncesBarney J. (2012) The Amazon Economy London: The Financial TimesCalin, G. (2001) Internet transactions and physical logistics: conflict or complementarity? Bingley: MCB UP LtdChaffey, D (2012) Amaz on. com case study Smart In sightsAvailable from: http:/www.smart in /digital-market in g-strategy/on li ne-bus in es

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