Watch Out, Vendors . . . Here Comes AmazonSupply
On April 23, Amazon launched a new site, AmazonSupply. The purpose of AmazonSupply is to sell inexpensive industrial, office and janitorial supplies to commercial businesses.
AmazonSupply will attempt to undercut other vendors by offering free shipping on offers over $50, up to 1-year returns, a broad selection of merchandise choices and, of course, low prices.
AmazonSupply could cause a sizable loss of business for chains like Costco, Staples and Home Depot. Its potential effect on Jan-San industry vendors like Jon-Don, J. Racenstein Co. and others could be even worse.
But it remains to be seen how well AmazonSupply will actually work for business owners. Whether AmazonSupply will become a preferred commercial supplier depends on how well it executes its mission–and whether consumers want to take a chance.
For a more nuanced take, read here: http://www.spendmatters.com/index.cfm/2012/4/24/Amazon-Supply-Launches–Industrial-Distributors-Ariba-SciQuest-Etc-Should-Plan-For-Competition.