In August 2012, Amazon.com, the world's biggest online retailer

1

• Operations Management
• info_at_casestudyhelp.in
• 91 94220-28822

2

• Operations Management
•  
• Case Studies
• case study (20 Marks)
• In August 2012, Amazon.com, the world's
  biggest online retailer, announced that it would
  introduce same day delivery of its orders as a
  service option to its customers and make next day
  delivery standard service. This move came in
  response to the regulatory changes in some states
  of the US that required consumers to pay sales
  tax, which in turn would strip it off its price
  advantage. In order to stay ahead of the
  competition, Amazon decided to cut its shipping
  time. In 2005, the company had introduced free
  two day shipping and discounted one day shipping
  rates in the US on eligible purchases for a flat
  annual fee under a service known as Amazon
  Prime'.

3

• This case discusses Amazon.com's business
  model, supply chain, and its order delivery
  processes. In 2005, Amazon.com introduced a
  premium membership scheme called Amazon Prime'.
  It was a free two day shipping and discounted one
  day shipping rates service offered to the members
  in the US on eligible purchases for a flat annual
  fee of 79. Over the years, the service was
  extended to other countries like Japan, the UK,
  Germany, France, and Canada. In 2009, Amazon
  introduced same day delivery in 10 big cities in
  the US, which were close to Amazon warehouses.
  However, in August 2012, Amazon.com introduced
  same day delivery a an option and made next day
  delivery a standard service to all its customers.
  In 2013, Amazon.com was a Fortune 500 company and
  a global leader in ecommerce. It had a wide array
  of products, international sites, and a world
  wide network of fulfillment centers and
  warehouses and customer service centers. It had
  developed a customer base of around 30 million
  people.

4

• The company was a retailing site that
  followed a sales revenue model and made money by
  taking a small percentage of the sale price of
  each item sold through its website. It also
  allowed sellers to advertise their products by
  paying a fee... However, analysts were skeptical
  about the success of the model due to the
  impracticality of the model and logistical
  hurdles that the company could face. Apart from
  these problems, the delivery model also faced
  competition from other big and small players.
•  

5

• Answer the following question.
•  
• Q1. Discuss the issues and challenges in the
  logistics and supply chain management of retail
  and ecommerce businesses.
•  
• Q2. Explain the concept of ecommerce and its
  impact on traditional retail.
•  

6

• www.casestudyhelp.in
• info.casestudyhelp_at_gmail.com
• info_at_casestudyhelp.in
• 91 94220-28822