Amazon and their inventory by Rob Smith

Reading time: 1 – 2 minutes

I was watching a presentation about Amazon on Get Elastic (well worth watching by the way) and a lot of it was great insight into what they do well and why. The bit that struck me the most though was their business model in terms of inventory and suppliers. It’s worth listening to the explanation but see below the image I snapped out the presentation.

Amazon inventory model

I think it’s just so simple yet brilliant. It means that for Amazon, cash flow isn’t a problem. It has the products and sells them before it has to pay it’s suppliers!

It’s always important to think about the business side of your ecommerce site as well as the site itself – how can you make your business run smoother?

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