Amazon’s business model follows both a B2C and B2-B distribution strategy. Indeed, on the one hand, its e-commerce platform is consumer-facing, providing millions of products to billions of users around the world. While its e-commerce platform is also used by other businesses, called third-party stores to sell their own products on top of Amazon.
Amazon Hybrid Distribution Model Explained
Amazon e-commerce first party business
Amazon e-commerce, is a B2C business, which targets billions of consumers across the world.
The B2C e-commerce is run for scale.
This side of the business is all about a wide variety of products, low prices, and very fast delivery.
On top of it, over the years, Amazon has added Prime, to enable consumers to get free delivery.
Amazon third-party platform
Amazon third-party platform, is the part of the e-commerce which hosts other sellers.
And it enables them to sell on top of Amazon.
Or they can decide to leverage Amazon’s inventories. In this case, the seller won’t have to store any inventory, which will be sent directly to Amazon, which takes care of the fulfilment.
Amazon AWS, is the cloud infrastructure, which powers up a good chunk of the web.
Amazon AWS is primarily a B2B and enterprise platform, which has become a company within Amazon.
Born, as a way for Amazon to offer, third-party sellers, the ability to host their e-commerce on top of Amazon, AWS is now a company with its own logics.
In this side of the business, the distirbution approach is quite different.
On the other side, it’s about a qualified sales force which is able to sell those services to other businesses or potentially enterprise clients.
Two souls, a single tech giant
As we saw, Amazon has two souls.
On the other hand, it’s also a B2B or enterprise platform.
Where with AWS sells its cloud services to other businesses or enterprises
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