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Amazon’s Lower Cost Structure Copyright 2013 © Mekko Graphics. All rights reserved. 1 Amazon's cost of sales 96.3-97.1 Efficient outbound fullfilment 1.5-2.0 Optimized inventory control .2-.4 Factory gate pricing/direct supplier pick-up 1-1.5 Average MC retailer cost of online sales 100 Add explanatory table here to explain reasons why Amazon’s cost are lower in more detail.

Amazon’s lower cost structure cascade chart

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Amazon’s Lower Cost Structure

Copyright 2013 © Mekko Graphics. All rights reserved.

Amazon's cost of sales

-963971. .

Efficient outbound fullfilment

-1.5 2.0

Optimized inventory control

-.2 .4

Factory gate pricing/direct supplier

-pick up

-1 1.5

Average MC retailer cost

of online sales

100 Add explanatory table here to explain reasons why Amazon’s cost are lower in more detail.