Research On Logistics Distribution Mode Selection In Amazon

The world’s most famous electronic business enterprise--Amazon is how to profit?Its logistics cost are reduced by nearly half in five years! In contrast, since Joyoacquired by Amazon.com, it also began to pay attention the control of the logisticssystem.however; it seems that Joyo has not yet to find a suitable way to reducelogistics costs. In the1990s, the logistics execution costs of Amazon once accountedfor20%of the total cost, now down to about10%,8.5%of the total sales revenue (thebiggest cost of Amazon is cost of goods sold, to determine the cost of goods sold onthe basis of price, so the cost of goods sold account for the proportion of sales revenuehas remained at about80%. as for other costs, the smaller the proportion of the totalsales revenue). Thus, the reduction of logistics costs on e-commerce businesses iscritical. Amazon had been able to turn around, the key factor is lower logistics costs.This research focus on how to reduce the logistics cost of Amazon China, usesthe methods of strategic analysis external factors and internal factors, and then usesquantitative strategic planning matrix to choose the suitable conditions of the businesslogistics mode. At the same time, taking advantage of the logistics cost advantage tothe freight relief against competitors, and expand sales and market share further itslogistics costs are reduced.