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Amazon to offer business storage and distribution service. By John Stokdyk

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26th Sep 2006
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Online retail giant Amazon has introduced the beta version of linked web store and fulfilment services for businesses.

Handling charges start from $0.50 to $3.00 per unit, with an additional charge of $0.40 per pound (lb) shipped. Storage costs $0.45 per cubic foot. Linked to an online catalogue costing $59.59 per month (credit card processing and fraud protection fees included), Amazon is planning to create a new model for outsourced business logistics.

The Amazon announcement does not make it clear whether or when the fulfilment services will be extended internationally, but one of the subsidiaries involved, Amazon Enterprise Solutions, is already working with Marks & Spencer in the UK.

Having developed its distribution chain both for its own sales and for major retail chains, Amazon is now moving on very small businesses that struggle to cope with supply chain issues. In addition to storing and dispatching the goods, Amazon will also handle returns and refunds, according to InfoWeek.

Dennis Howlett, alerted practitioners the news on his AccManPro blog, commenting that you usually only hear about the combination of manufactured inventory and logistics around SAP installations, yet Amazon is bringing a sophisticated supply chain within reach of small, hobby-type businesses.

"Most [accountancy] practices are not even on nodding terms with many of these types of business or their issues, yet here we have a technology giant bringing it to that audience and removing large gobs of business friction along the way," Howlett wrote. "Now does it make sense to follow technological innovation as a way to actively helping the small business grow and prosper?"

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By cwilson
27th Sep 2006 17:26

Amazon.com only?
The announcement refers to Amazon.com Inc. & quotes prices in US$.
Will this apply in the UK also, I wonder?

Colin

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