A History of Amazon Business
Former VP at Amazon Business
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A History of Amazon Business(February 24, 2025)
Former VP at Amazon Business
Interview Transcript
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Were there any other issues you noticed, besides the procurement process being difficult, that you thought could be improved back then?
However, when you're looking for random supplies, often referred to as tailspin, there's a lack of transparency and negotiated pricing. These aren't usually the easiest SKUs for distributors to carry, and when they do, they often have high margins. As a buyer, you don't have much visibility into what you're purchasing. You're not conducting a sourcing event for small dollar purchases or spot buys, which often leads to overpaying. Additionally, the speed of delivery and transparency aren't great either.
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Were there any other issues you noticed, besides the procurement process being difficult, that you thought could be improved back then?
With a broader marketplace solution like Amazon, you can easily order these SKUs, get competitive pricing, and benefit from Amazon's network, which provides excellent delivery, transparency, and visibility. It's almost like conducting a micro sourcing event for each purchase, with multiple sellers competing for your business. As a procurement leader, there's significant value in that.
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How is the team structured? Did you start leading the Amazon business team right away? Was it a small team that grew over time?
No, you have to earn the right to invest. The concept is there, and it makes sense. When developing a solution, if you can get the right backing, you need to establish the right proof points. It's like any startup. If you try to throw too many people at it too quickly, it might collapse under the complexity. You need to be laser-focused on what you're doing and incrementally grow, doubling down on wins when you can scale. The biggest challenge is figuring out how to get the right proof points and get the technology off the ground. The other major pivot is determining how to scale a business, measure it, grow it, and keep everything running smoothly during the process.
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