Review
Review

Review your business model canvas section by section and write any meeting notes

Review your business model canvas section by section and write any meeting notes

Customer Segments

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Household Consumer Clients Household consumer Require cloud services and infrastructure Advertise on Amazon Retail Clients Purchase products listed on Amazon Purchase Amazon’s subscriptions services (Prime)

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Value Proposition

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Ecommerce To provide an online shopping platform that quickly delivers any item, to any person, anywhere, at any time. Amazon Web Services To provide cloud services, infrastructure, and data storage to business clients in an agile, flexible, scalable, and secure form.

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Revenue Streams

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Low margin revenue from retail e-commerce sales and fulfillment E-commerce and fulfillment are low-margin due to costs related to warehousing and upkeeping fulfillment centers High margin revenue streams from AWS, advertising, and subscription services Low upkeep and variable costs allow AWS, advertising, and subscription services to be the primary profit driver for Amazon, despite being a significantly smaller revenue stream

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Channels

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Global distribution channels through shipping partners and fully streamlined fulfillment centers Enormous online marketing and advertising platforms

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Customer Relationships

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Best-in-class fulfillment systems allowing customers to receive their orders within 1-2 days Online/phone communication channels and built-in support channels on Amazon hardware “Customer-first” service mindset regardless of customer segment

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Key Activities

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Quick fulfillment processes Just-in-time delivery and shipping systems allowing for Amazon Prime to deliver orders within 1-2 days R&D to streamline and improve efficiency of fulfillment centers and other projects (e.g. Amazon Grab & Go store) to lower costs

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Key Resources

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Shipping services Warehouses and fulfillment centers Servers for AWS and cloud services

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Key Partners

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Shipping companies such as UPS, FedEx, and DHL which provide shipping services for Amazon’s fulfillment process to ensure timely arrival of products Major retail companies such as Nike, Best Buy, and Calvin Klein who want to increase their sales by selling on Amazon, consequently increasing Amazon’s market presence as well

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Cost Structure

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Cost-optimization strategy Comparatively lower costs for managing and upkeeping AWS servers Large investment and fixed costs from expanding Amazon Prime to international markets and building new fulfillment centers Well scaled and efficient fulfillment center and process allows for optimized costs

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