Amazon’s Distribution Strategy: Doing the Right Things

The purpose of this paper is to analyze and illustrate Amazon’s distribution strategy and its success. This paper examines Amazon’s distribution strategy to demonstrate the importance of distribution strategy to the success and sustainability of its organization. The analysis indicates that the distribution strategy, including technology, shipping, and distribution infrastructure, is the most vital factor for the success of Amazon. Recognizing the importance of distribution systems, constantly innovating convenient and on-time delivery methods, and taking control of inventory and shipping activities have separated Amazon from its competitors and led Amazon to establish many different types of fulfillment facilities all over the world. Given Amazon’s continued growth that came with its constant strive for delivery and cost efficiency and customer satisfaction, it was inevitable that Amazon would eventually venture into the actual shipping business and emerge as the competitor of the traditionally well-known shipping companies such as DHL, FedEx, and UPS. The previous and current Amazon’s distribution strategies demonstrate that Amazon will continue to focus on developing and implementing new and creative distribution strategies to separate itself from the rest of the retail and e-businesses.