So while the partners shipped the items, Amazon leveraged on its e-commerce expertise. At the same time they have to make a profit. On the other hand Amazon would now be able to concentrate on its core activities by reducing the need for warehouses. Further, Amazon had the distinction of being the first e-commerce site to use collaborative filtering technology 5.
Firstly, flawless logistics and fulfilment are key drivers of customer retention and long-term profitability. They are not going to hurt themselves with that choice. Many years back Amazon would have never thought of doing such an activity as having more inventory meant more costs.
Two types of online marketers are there:- 1. In order to the inventory, Amazon refined its software.
How Amazon deals the supply chain with fluctuating demand?