Amazon: Online sales

Question#01. why is Amazon building more warehouses as it grows? How

many warehouses should it have and where should they be located?
As it developed, the organization included distribution centers, enabling it to respond all the more rapidly
to purchaser orders,
Obviously when the no of distribution centers increment the reaction time diminish, and when the no of
stockrooms decline the reaction time increment. So by expanding the no of distribution centers and find
them close to the client will enhance reaction time.
Amazon has around 50 distribution centers, 20 in U.S and rest 30 in Canada, France, Germany , Italy ,
United Kingdom , China , and Japan.
Question# 02. what advantages does selling books via the internet provide over a traditional
bookstore? Are there any disadvantages to selling via internet?
Advantage
Presently a days world has turned out to be worldwide town that is the reason there is a need to begin
business by means of internet business as we probably am aware e-business influences client benefit
components, for example, item assortment, accessibility, client encounter, time to market, perceivability,
and return-capacity.
Amazon offers a considerably bigger choice of books than a run of the mill book shop. Offering a similar
choice at a retail location would require a colossal area with correspondingly vast measure of stock.

Disadvantage

Reaction time
Transportation cost

Question#03. should Amazon stock every product it sells?

Answer: No . It should stock those products which are in higher demand.
Question#04. what advantages can bricks-and-mortar players derive from setting up an online
channel? How should they use the two channels to gain maximum advantage?

The execution of customary book shop production network can be enhanced fundamentally by
joining the quality of the retail and online channels. Realize that the advantages of total are most
huge for low-request books whose request is difficult to figure.
The book supply chains ought to be organized so that retail outlets convey many duplicates of
hits for client buy and one duplicate of low request books to urge clients to peruse and make
motivation buy. Terminals or web stands ought to be given with the goal that clients needing to
request low request books that the book shop can offer.
This approach permits the production network to diminish inventories by conglomerating low
request books sold on the web while keeping transportation costs low for hits sold at retail
location
Question#05. what advantages/ disadvantages does the online channel enjoy in sale of
shoes/ diapers relative to a retail store?
Focal points/Advantages:
1. Time to showcase
2. Adaptable evaluating, portfolio, advancements
3. low office cost
Impediments/Disadvantages:
1. Transportation cost
2. Reaction time
3. IT cost
Question#06. For what products does the online channel offer the greater advantage
relative to retail stores? What characterizes these products?
Online channel offer the more prominent preferred standpoint for those items having extensive
item assortments.
For instance; Netflix offers a much extensive choice of films than any video rental store, offering
a similar determination at a store would require a colossal area with correspondingly substantial
measure of stock.