Distribution Strategies Of Amazon & Flipkart

PRESENTED TO: PRESENTED BY:

Dr. Surbhi Singh Ritika Singh Bm018267
Rohit Bhowmick Bm018268
Rohit Kumar Bm018269
Roopin Roopala Bm018270
Ruchika Bhardwaj Bm018272
Sagar Bhardwaj Bm018273
 INTRODUCTION
• What is distribution Strategy?
• Strategic distribution is a competitive advantage that accrues generally from the
configuration of a distribution network (who, what, where, when) and, more
specifically, from the selection of partners (i.e. middlemen) who intermediate
between the company and the customer by performing necessary fulfilment and
service activities.

• More specifically, a company's distribution strategy is largely defined by decisions

on the number and type of customer interfaces. That is, order entry points
(where and how orders are placed) and fulfilment nodes (where and how
customers obtain finished goods).
•At the extremes are two fundamental fulfilment options: direct distribution from the
manufacturer to customers, and intermediated (indirect) distribution through
aggregators that carry products from multiple suppliers (who may themselves be
complementors be competitors).
FLIPKART DISTRIBUTION CHANNEL
 INTRODUCTION TO FLIPKART

• Founder : Sachin Bansal (CEO Co-Founder) and Binny Bansal (COO Co-founder).
• Established : In the year 2007.
• Investment : 4 lacs ( $9000).
• Headquarters : Bangalore .
• Human capital : 30,000 Employees.
• Revenue : 19,900 crores INR (US$3.0 billion)
 PRODUCT PORTFOLIO
• Books
• Movies
• Music
• Games
• Mobiles
• Cameras
• Computers
• Apparels
• Home Applications and Electronics
• Healthcare and Personal Products
• Stationary, Perfumes, Toys and many more…
 DISTRIBUTION STRATEGY OF FLIPKART
• Ekart, Flipkart’s in-house logistics arm, has been one of its most compelling
differentiators. It has given Flipkart unmatched reach into the interiors of
India with a coverage of over 6,500 pincodes.
• Ekart remains a key component of its growth strategy. “Supply chain is the
key to developing these categories as large appliances, furniture, groceries
etc.
• To understand how Flipkart uses its logistics arm as a smart weapon, we
just need to look at the way they have executed growth in the sales of large
appliances.
• Ekart built a separate supply chain infrastructure for large appliance and a
separate supply chain for small appliance.
• What we have recognised is that customer needs in each category are
different—it is speed of delivery for mobile phones, slotted delivery and
installation for large appliances, freshness for grocery.
• Customer needs, speed requirements and cost implications are all very
different across different categories
• Flipkart is applying its learnings from large appliances’ logistics to furniture,
another category with bulky products.
• furniture is using the same supply chain infrastructure as large appliances, but
a dedicated one is being built.
• Most of the Companies are using ERP system which will take care of Managing
order, Inventory management, Reverse Logistic etc.
• Following are some important steps in Logistics & Supply Chain.
Order Place
1)When ever customer place order ERP send notification/Email to Online portal
and Seller through server.

• Estimate Time
As you know without pin code you can not place the order. So this companies
have some calculation of delivery time depending upon your cities either tier 1
,2 or 3.
• Transportation / Logistics / Courier Service
Courier partner have the product either from seller or online partner. Now it is
easy process for them to deliver it to customer as you know.
After courier partner deliver the product to customer courier company notify
online portal regarding the same and they close the matter
• Inventory of Product & Shipment
If you purchase from some seller then through seller product will deliver and if you
purchase from Amazon(If they store inventory) or WSRetail (Flipkart) then they will
deliver product through some courier partner.

• Having its own distribution firm (Ekart) and payment gateway payzippy has
helped the company in controlling its expenses and passing the benefits to the
end customer.
• The very demerit of Flipkart’s distribution channel is its reach as compared to the
peer E-commerce companies like Amazon, Snapdeal Ebay etc who can deliver the
customer’s order even to the remote locations.
• One more problem of Flipkart is that it does not support sellers with package size
of above 8 kgs. You have to use flipkart advantage for the same.
 CONCLUSION:
Amazon
• Distribution of Amazon India is highly structured across the pan India, had many
distributors in each and every city which in turn distribute the products to the
retailers.
• Whole distribution channel works an the system of commission and credit policy.
• Distributors will get commission not only for delivering customers but also for other
retailers.
• Credit policy of distributors depends on the type of good sale.
• The In-store logistic arm is doing a significant work in helping Amazon offer next day
or same day delivery.
• ATL promotions was launched on advertising galore in 2014, #Aur Dikhao campaign
launched in IPL 2015, and the great indian summer sale started.
• Print media was used to advertise numerous promotional offers.
• Online advertisements mainly focused on wide range of products.
 Flipkart:
• The strong emergence of e-commerce has placed an enormous pressure on the
supporting logistics functions.
• The proposition of e-commerce to the customer in offering has provided an
almost infinite variety of choices spread over enormous geographical area.
• Key challenges Flipkart faced: Building a loyal customer base, last mile delivery,
Managing warehouse location, Brands pulling out of e-commerce, Security
issues.
• Right from its inception in 2007, Flipkart focused immensely on concept of
“customer delight”. They came up with 5 point mantra in the initial phase, and
recklessly improved upon them…ie Brand and service, shipping and delivery,
cash on delivery, 30-day return policy, warranty and insurance.
• Launched advertising campaigns “Ab sirf shopping nahi, flipkart karo”, featuring
kids.