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18 views

Amazon Dot Com Templates

Uploaded by

Manoj Ram
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Exhibit 1: Board Plan

Retail Strategy MIS


Value proposition: broadest possible assortment of
products, at competitive prices, shipped and
received in a short time window Vendor Central

300 Million customers Investments in automation; Amazon Robotics

573 million products for sale


Prime memberships: $119 x 100MM members =
$12B

Delivery to home or car

Amazon Key
Physical stores sales $1.3B: Whole foods (465);
book stores (12), Amazon Go

How are these tied together?


Where are the interrelationships?
Underpinnings:
Culture: High tech
Performance: Future:
How profitable is Amazon.com? Sustainable?
it 1: Board Plan
Supply Distribution

Category buyers for limited number of Amazon More than 1.2B customer shipments;
MOR products more than 5B items shipped
Exhibit 7: 708 facilities including
Amazon products sourced through first and second fulfillment centers, Prime Now hubs,
party sellers delivery stations
More than 2 MM third party sellers listed products
on Amazon.com;required approval for some Fulfillment centers focused by product
products category or size
Inbound and outbound sortation
Third-party sellers represent 50% units shipped centers
Third-party sellers handled sourcing and owned the
inventory - Amazon was paid a fee Amazon Flex for last mile delivery
Fulfillment by Amazon (FBA) service source of
revenue Building truck and Prime Air fleets

Discontent among Whole Foods suppliers Freight forwarding operation in China


Shipping revenues of $9B vs costs of
$16.2B
Purchases bulk shipping services
Product flaws

Alternatives?
Exhibit 2: Amazon Delivery Channels

Amazon suppliers ship product to inbound sortation centres. Product is


shipped to a fulfillment centre.

Amazon suppliers ship


product directly to
fulfillment centres

Product is picked, packed, and loaded onto a trailer at the fulfillment


centre.

Product is sent to Package is sent to a sortation centre, where


FedEx or UPS it is combined with product going to a similar
Zip code

Packages are sent Packages are sent to


to the US Postal Amazon Delivery
service stations and hubs

Packages are Packages are Packages are


delivered by delivered by delivery by local
FedEx or UPS postal carrier courier or Flex
drivers
Exhibit 3: Supply Chains of Amazon and Tradition

Strategy

Sales

Supply/
Procurement

Supply Chain
Exhibit 3: Supply Chains of Amazon and Traditional Retailers
Amazon
azon and Traditional Retailers
Traditional Retailer
Exhibit 4: Comparator Financial Ratios for Amazon, Walmart, and Target

Amazon 2014 2015 2016 2017


Inventory turns
Days inventory
Days receivable
Days payable
Cash Conversion cycle
ROA
ROE

Walmart 2014 2015 2016 2017


Inventory turns
Days inventory
Days receivable
Days payable
Cash Conversion cycle
ROA
ROE

Target 2014 2015 2016 2017


Inventory turns
Days inventory
Days receivable
Days payable
Cash Conversion cycle
ROA
ROE

Note: There is only a 30 day difference between the fiscal year ends of Amazon, Walmart and T
ial Ratios for Amazon, Walmart, and Target

Cost of sales + inventory


Inventory + cost of sales x 365
Accounts Receivable /Sales x 365
Accounts Payable + Cost of Sales /365
CCC=Days Inventory + Days Receivable - Days Payable
Return on Assets
Return on Equity

ce between the fiscal year ends of Amazon, Walmart and Target


Exhibit 5: Financial Analysis - Amazon Operating Income Margins

Operating Income Margins (%): 2014 2015 2016 2017


North America
International
AWS
Total Operating Margin

AWS = Amazon Web Services


Exhibit 6: Financial Analysis - Amazon.com Business Segments (in
US $ Millions)

Amazon (Fiscal year end


Dec 31) 2014 2015 2016 2017
Net Sales:
North America 50834
International 33510
Total Net Sales: 84344 0 0 0

Operating Income:
North America
International
Total Operating Income 0 0 0 0
Exhibit 7: Revenues and Fulfillment Expenses (in US $ Millions, for fiscal year end 12/

2011 2012 2013 2014


Product Sales $ 42,000 $ 51,733 $ 60,903 $ 70,080
Cost of Sales $ 37,288 $ 45,971 $ 54,181 $ 62,757
Fulfillment Expenses $ 4,576 $ 6,419 $ 8,585 $ 10,766
Fulfillment Expenses as % of Sales 10.90% 12.41% 14.10% 15.36%
Fulfillment Expenses as % Cost of Sales 12.27% 13.96% 15.85% 17.16%

Year-Over-Year Percentage Growth: 2011 2012 2013 2014


Product Sales 23.17% 17.73% 15.07%
Cost of Sales $ 0
Fulfillment Expenses 40.28% 33.74% 25.40%
for fiscal year end 12/31)

2015 2016 2017


$ 79,268 $ 94,665 $ 118,573
$ 71,651 $ 88,265 $ 111,934
$ 13,410 $ 17,619 $ 25,249
16.92% 18.61% 21.29%
18.72% 19.96% 22.56%

2015 2016 2017


13.11% 19.42% 25.26%

24.56% 31.39% 43.31%


Exhibit 8 Year over Year Growth
0.5
0.45
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
2011 2012 2013 2014 2015 2016 2017

Product Sales Cost of Sales Fulfillment Expenses

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