Amazon is taking a stronger step forward in how it sells auto parts and is reshaping how consumers and businesses shop online, a company leader recently explained.
With the goal of bringing convenience and efficiency to the market, Oscar Garcia, Amazon category lead, reviewed the company’s approach during a recent industry conference. He highlighted how their one-party (1P) program is changing customer experiences. The program allows Amazon to purchase inventory directly from vendors, store products in their distribution centres and provide delivery faster than the industry has been accustomed to.
“Customer returns that were very complicated … have completely changed,” Garcia explained. “Previously, customers had to create elaborate stories just to return a product. Now, returns are seamless.”
He added that it’s not just simple transactions that the company offers. Garcia noted that Amazon has compressed delivery expectations, turning what was once a 14-day delivery standard into a near-instant experience. Customers now consider three-day shipping “slow,” signalling a shift in consumer expectations.
One particular development he highlighted was Amazon Business, a platform designed to serve both small businesses and large corporations and offers benefits like price discounts and streamlined procurement management. Garcis pointed out that 70-80 per cent of spare parts purchases are now “do it for me” transactions, which represents a market opportunity.
Garcia also highlighted Amazon’s global reach through its Global Store, which provides a localized shopping experience. Customers can browse in their native language, pay in local currency and access a catalogue of 64 million items, which Garcia said is the largest of any global retailer.
He further highlighted that the company’s logistics models allow for direct fulfillment. This helps its partners keep inventory in their own warehouses while Amazon handles the shipping. There’s also a ‘vendor flex’ model, which gives Amazon a small warehouse space in a company’s facility, reducing lead times and supply chain costs.
Addressing potential concerns about inventory management, Garcia emphasized that Amazon prioritizes customer trust.
“We ensure the best available price and delivery experience,” he said. “If we lose customer trust in pricing, they’ll stop coming to our store.”
Image credit: Depositphotos.com
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