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1、English for Academic Purposes (2013)Amazon sLogistics management systemChaocongZhuangDe Valera08 .Aug.2013A, Inc. is an electronic commerce (E-Commerce) in America. It isone of the worldslargest online retailers. Statistics by Spiro showed that thecompany had sold products in all 50 states and in 45
2、 countries in 2009, likeAmerica, Canada, and United Kingdom (Spiro, 2009). Amazon started as anonline bookstore,then numerouscommoditieswere on sale, like electronicproducts, furniture, food, and sports goods, etc. Since 2002, it has earned thefat profit (Barney,2012).Becauseof the internetand infor
3、mationbubble(dot-combubble)from1997 to 2000,many e-commercecompanieswentbankrupt,but Amazonsurvived(Johnson,2010).The main factor leads tosuccess of Amazon is Logistics transportation, which was treated as one of thelargest obstacles in the development of e-commerce. This essay will discussthe featu
4、res of logistics managementin Amazon,and analyze how Amazonsucceeds due to its specific logistics management.In the tough time of e-commerce(dot-com bubble),Amazon s strategy wasunusual, it did not make any profits in these years. A case study from Chaffey,Amazon put forward an innovative promotion
5、strategyproviding the deliveryservice for free. If consumers purchase certain price of commodities, they willreceive free-shipping service (Chaffey 2012). This measure promoted greatlythe consumer s passionin shopping online, and reassured them the worry ofhigh cost on online shopping. As a result,
6、the growing consumer group broughtgreat economic benefits.Accordingto Spector s research, the client base ofAmazon increased to 40 million, and the profits in the forth quarter of 2001 is 5million dollar (Spector, 2002). The reality of high prices in online shopping leadto the loss of consumersin ma
7、ny companies,such asP andCisco,failed completely. In contrast, Amazon used logistics as the promotion strategy,which sold products at a lower price, making less profit but the higher turnover.Therefore, it occupied most of the market in online shopping (Lashinsky 2012).However, while bringing huge p
8、rofits, this strategy is accompanied by risk. IfAmazon can not solve the cost caused by logistics strategy and remove theburden of finance, it will fail completely (Stanley and Thomas, 2002). To solvethese problems, Amazon took some measures which will be mentioned belowto decrease spending.Free del
9、ivery service was the key factor for Amazon s success. However, it is also a double-edged sword, because it increases the high cost. According to Johnson, the method used by Amazon is to cut down the cost on financial management, like reducing spending, downsizing, using the advanced order system to
10、 decrease mistakes, integrated delivery and saving investing costs,which can reduce the logistics cost (Johnson, 2010). In other words, Amazongains more sales profit through these methods while the number of consumersincreases. Thus, a good cycle in business is created, but high requirement ofthe co
11、st control ability and logisticssystemare also required.In addition,Amazonfounda newwayforprofitgrowth.Second-handproductsareavailableon Amazon.On the other hand,Amazoncooperateswith othercompanies, collecting rents by selling their products. Moreover, the customersin Amazon can purchase products fr
12、om different brands. It provides variousproductsto attract more personsto shop, and reducesthe inventoryrisk.Theseeffective measuresare the securityfor Amazon to run successfullypromotion strategies.E-Commerceisbasedonmoderninformationtechnologyandcomputernetworks (Sandeep,2002). The characteristics
13、include trading virtualization,visualization,low cost and high efficiency. In e-commerce,the information,transaction and cash flow can be finished on the internet. Only logistics can notbe achieved on the internet (Jeff, 2012). As a result, logistics became the mostindispensiblepart of e-commerce. T
14、helow efficiency of logistics will destroythe advantage of e-commerce such as economy, convenience and shortcuts.The success of Amazon benefited from its perfect logistic management system.And that is why the logistic strategycan be used by Amazon.In order toreduceinvestmentandoperationalrisks,Amazo
15、nentrustedits domesticdeliveryservicetotheU.SPostalServiceandUPS,andentrustedinternational service to international shipping companies. In addition, Amazonitself can concentrate on developing operation and core business (Calin, 2001).Becauseofthecooperationbetweencompanies,Amazonkeepsalowinventory.
16、In general, Amazon will pay the payment to the public 45 days afterselling the books. Thus, the turnover on inventory and capital increased, andsignificantly enhanced the effect of business. Although Amazon operates manykinds of products,the price for productsis reasonable,and the quality anddeliver
17、y service can satisfy the customers. Therefore, it keeps a low rate onreturn of goods. The low ratio on returning of good not only reduces the cost ofreturning purchases, but also acquires a good business reputation. In addition,Amazon built distribution centre according to different kinds of goods,
18、 so theproductsorderedby consumersmay be distributedto differentcenters.Inorder to save time, the carrier loaded the same kind of good, which are boughtby different persons, in the same car. It thereforesaves a large amountoftimesin transport,anddecreasesthecost of transport.Finally,Amazonprovidesch
19、oice about type and date of delivery to consumers.People canchoose to receive their commoditiesby shippingor land transportation,andwhat time they want to receive their merchandises.In conclusion,Amazon shows the scientificlogistics managementsystem tothe world. It providesconvenient and flexibledel
20、ivery service to consumers.Amazon is known for its low price and satisfactory service. It sets up a goodimage to costumers and strengthens their trust. The revelation from Amazon isthe importanceof logisticsin e-commerce.It is a good samplefor otherelectronic business enterprises to use for reference. They will be booming ifthey take logistics as their developmental strategy like Amazon.ReferencesBarney J. (2012)The Amazon Economy London: The Financial TimesCalin,G. (2001)Internettransactionsandphysicallogistics:conflictorcomplementarity? Bingley: MCB UP LtdChaffey, D (201
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