an attempt to push into an area that has demonstrated
more than its share of failures over the years, Tompkins
says.
Amazon has several options, including the launch
of its own transportation network or the creation of
courier clusters in each market it serves. Or it could
drop the bomb and announce the purchase of a
major transportation company. Whatever direction Bezos & Co. take, it will be based on optimizing margins per box and driver stops per
block—the hallmarks of delivery success in the
parcel world, according to Tompkins.
Taddonio of Insite, who advises traditional
industrial distributors on e-commerce strategies to counter the encroachment of e-providers like Amazon and Google Inc., says
Amazon Supply will focus on providing the
best product price and availability, and will
not—at least for now—address the value-added
solutions that have successfully embedded distributors in
their partners’ operations. Those solutions include a broader range of transportation options beyond parcel, the one
shipping mode that Amazon is comfortable with, she says.
Taddonio adds, however, that too many traditional players “are not paying attention,” either because they are
unaware Amazon Supply exists or they feel it’s not a threat.
This kind of thinking puts old-line distributors at risk of a
The broader lesson, according to Tompkins, is that
Amazon’s model can be exported into any area
where goods are ordered online. Asked to identify
any impediment to Amazon’s muscling into any
field it wants, he replies, “Nothing.”
The notoriously secretive Amazon would not
respond to requests for comment. Thus, this
story is left to quote from the proverbial “Book
of Bezos,” which preaches a commitment to
low prices and the need to proceed with
patience as well as an unbending strategic
view—but with a willingness to change course
if the winds suddenly change direction.
“There are two kinds of companies in the
world,” Bezos was once quoted as saying. “Those who sell
things for more, and those who sell things for less. We’re the
second kind.”
As for the mode of implementation, another Bezosian
maxim should resonate with anyone who dreams of build-
ing a behemoth from scratch: “We’re stubborn on vision,
but we’re flexible on tactics.” ;
