Amazon keeps adding to its Web services. Today, it is opening up an API for its Fulfillment by Amazon service, which allows online merchants to outsource their shipping to Amazon’s fulfillment centers. Up until now, the service still required a lot of manual steps on the parts of companies or entrepreneurs using it—they had to pre-label each box before sending it to Amazon and manage their inventory manually through software.
Now, with the new Amazon Fulfillment Web Service, an entrepreneur’s computers can talk directly to Amazon’s computers. Requesting orders to be shipped, tracking orders, and even printing branded labels at Amazon can now be done automatically. Frankly, I am surprised this was a manual process to begin with.
By tying directly into other companies’ inventory and ordering systems, which are in turn tied to their Websites, Amazon is in effect creating a Web version of EDI (electronic data interchange). EDI, which was the standard way for big manufacturers to gain visibility into their suppliers inventory, was expensive and only available to really big corporations. Web services like this one are bringing those information efficiencies across the entire economy to small and medium sized businesses as well. It is yet one more way that small companies loosely joined can enjoy the benefits that were once only available to large corporations. More Web services, please.
Oh wow! Spare some thought for the hundreds of small businesses that offer this service, usually from the more industrial parts of America. I hope they can still remain competitive .
This is like some James Cameron T4 style shit.
Always want more. Greedy part on Amazon. i hate companies screwing the small guys. Amazon losers
Yet again, another visionary service from Amazon. One of the few big companies that truly “get” the web.
>Amazon is in effect creating a Web version of EDI (electronic data interchange). EDI, which was the standard way for big manufacturers to gain visibility into their suppliers inventory, was expensive and only available to really big corporations
Ummm…how do you figure that?
EDI (which I hate more than any human being should have the right to) is a system of electronic invoicing between two parties. This is a system of automating a small business’ internal supply chain. Two completely different things. EDI’s main virtue is the ability to communicate payment information from a vendor to a customer and I don’t see anything here that does that.
I might be missing something here and I’d welcome the death of EDI as much as anyone but this doesn’t appear to be anything that could do that.
#3 I have little sympathy for the small-time middlemen. Amazon is making small-time retailers more efficient with this service.
From Germany: Great! Have your own brand but amazon’s quality of service. I have been waiting for amazon to offer such a service for a long time. A whole range of new commerce-based revenue streams become possible for smaller projects. Other companies offer the same service on a smaller scale. I assume that amazon’s technical integration and the quality of service (highly automatized infrastructure leads to lower error margins) will deliver an excellent customer experience.
Someone please tell me when the service becomes availible in Germany so that I can plan my new startups accordingly
If you want to look at another fulfillment service designed for growing web retailers check out SHIPWIRE.
We’ve had fully documented API’s since we launched
http://help.shi...eveloper-tools/
The API’s are already in use by top shopping carts, PayPal, Checkout, eBay auctions…the works.
http://help.shi...it-works/carts/
Warehouses in Chicago, Los Angeles, Toronto, Vancouver and UK(beta). Multiple locations give you 1 to 2 day delivery for the price of ground in US and Canada.
We’ve even got a nifty tool that allows you to see the price and shipping cost savings you can get from using multiple warehouses. Go to shipwire.com/pricing and hover over the little orange mark next to “Shipping Company”.
A pop-up will come up that allows you to select your existing location and volume and the tool will tell you how much money/time you can save.
Try the free trial. No credit card needed.
http://www.shipwire.com/trial
Overall amazon does some excellent work. As far as screwing over small business’s or middle man.. this should help them as far as I see. If your business is not able to keep up with innovation and technology then you don’t deserve to be in business. Keep it up amazon
Amazon has a great merchant system, however i see don’t see how someone can sell on amazon unless they are stealing their product.
I sell media on amazon using their warehouse/shipping services, amazon takes a 20% cut out of my income before expenses. That pretty much leaves only a few items in which i can turn a profit.
Post Script. ebay sucks monkey D@#K
A great addition to Amazon’s web services.
This is truly innovative on their part. They have a great mind for finding opportunities by extending their internal resources to other businesses.
I agree. Amazon is really helping small business. Not greedy at all, more like progress. # 3, you are a silly goose.
And the margins for ecommerce become thinner still….
I guess all web businesses really do devolve into the same differentiators: customer acquisition and conversion rates.
Tom,
You’re right. EDI blows. That said, EDI does include fulfillment and catalog, and yes, also frequently includes invoicing (and Amazon supports EDI here, too). It is data exchange for the supply chain. But it’s old world technology that remains because it was such a pain in the rear to set up in the first place. Even when parties are using the same version, there can be variation in its output. It’s barely human-readable.
If Amazon is opening up an API, that’s gotta be a plus. I must imagine that it will be more efficient than traditional EDI, which can take months to set up, and cost loads of money for two trading partners. Let’s hope they’re eliminating the VANs, too, and not charging their vendors those data conversion fees.
I think it could grow to be a pretty cool service.
I know it’s their first release, but it doesn’t seem like the customer gets a ton of robust warehouse interface features you would expect from a 3PL. I read the release notes and it seems like pretty simple inbound (purchase orders) and outbound (customer shipment) requests. I quickly looked at the outbound APIs, and I don’t see how you can set bill to information on an order, just a shipping address (DestinationAddress)? Billing Info is kind of important for gift orders.
And what about returns? Maybe that is considered an inbound request, but they need to be handled differently since that inventory is usually inspected before it’s made available to sell.
Mom and Pop type operations don’t care too much about miscellaneous transactions (inventory adjustments due to cycle counts, damage, etc…), but most retailers need this type of feed, too. And how about inventory snapshots (ATP and not)?
I think amazon could do really well with this offering. Almost everyone in retail has had a nightmarish experience with a crummy distribution group!
@Greg – I just don’t see how this replaces EDI (or comes even close). First, I don’t see any document standard here. EDI defines document types for each transaction so there can be finely grained integration into internal systems. Things like contact info, part numbers, shipping services used, etc… all come from the EDI document itself. As far as I can tell, the consumer in the Amazon scenario doesn’t even have access to the API so how could it replace that?
Plus, most EDI transactions are made with terms. In that case the EDI transaction is just to convey payment information (as opposed to actual payment) verifying the transaction to give the vendor legal standing if the receiver doesn’t pay. Obviously this doesn’t do anything to solve that.
I’m obviously just getting hung up one barely relevant sentence but, if I’m right, I’d just hate for someone to go around saying this is some kind of EDI replacement when I don’t think its anywhere close.
(which isn’t to say it isn’t good for people who don’t need that kind of inventory control btw)
This is great for small businesses. Large corporations are built on successful systems… any business is built on successful systems for that fact. Giving small businesses and EDI system will help them be more productive. The only businesses that I can see being hurt are ones that aren’t very strong to begin with.
Raza Imam
http://SoftwareSweatshop.com
Saying it replaces EDI was a little off topic, because any interface –even a manual one– replaces the need for EDI. XML is the not so new EDI (using FTP, SOAP, REST…), and as long as you agree of the XML Schema/XSD, then there is no need to use EDI. You can properly send orders in an XML file just as easy as you can send them in 940 EDI files. In fact, often more reliably since you don’t have to use a VAN or some 3rd party AS2 software.
For those looking for a good alternative to this service… one that is designed specifically for web merchants… you should check out Shipwire.com.
all I can say is wow, just wow wow wow, the world is really changing, this is awesome!
It’s just a matter of time now before Amazon spreads into the service sector now, that is the only place next to tap after they have become the store where anything and everything can be purchased. Amazon gas stations with friendly attendants giving you a kindle to buy stuff while you wait, Amazon cars (kindle was just the start) that allow you to shop while you drive.
Jon
http://dreamclue.com … get the message!
I think that is a great idea, thanks to the internet things become possible that were before never imaginable.
Thanks Sam for mentioning us.
If you want to compare Amz to something check out SHIPWIRE.
We even offer a free trail. Don’t need a credit card to try it. shipwire.com/trial
Pricing is straight forward and only. Starts at $30/month
We’ve had XML API’s for a long time for order submission, rates, tracking and inventory updates. Lots of carts have already integrated our APIs.
There is also integrations with PayPalbuy now buttons, eBay auctions, Google Checkout. All set up and ready to go.
We’ve got warehouses in Los Angeles, Chicago, Toronto, Vancouver and UK (beta).
We have multiple warehouses so that merchants can save money and have faster order delivery by storing inventory closer to buyers. Using the whole network means 1-2 day delivery for the price of ground.
To see what multiple warehouses can do we released a new widget. Go to our pricing page and hover over the “shipping” section (little orange tab). A pop-up will expand that allows you to input your location and Shipwire will calculate how much you will save in time and money using multiple warehouses.
Know this is not tech related but when they send your stuff, do they send it in amazon branded boxes? Does anybody know? thank you!
This is great! but they also take over 60% of the profits due to storage and shipping.
I can see ebay doing same thing. Ebay is following Amazon footsteps. With ebay new rules, it help big companies while screwing little
YouYap.com
next week news – shipwire gets acquired by ebay.
@26: Ebay wouldn’t get into an industry like this. They prize them self (and save money) on the fact that they don’t have to store or ship anything.
Nate at Shipwire again. Yesdi, thank you for the kind words.
Entrepreneur mag April ‘08 issue (on the stands now) continues our story with a customer profile.
http://www.entr...ril/191638.html