As Amazon concludes another successful Prime Day and begins to report the impressive results of the expanded 36 hours, we at MonarchFx would like to offer some comments.

The tumultuous July 16th started with its technical difficulties.  This was of course unexpected by Prime members, Amazon analysts, and eCommerce students of Amazon.  This was the 3rd annual Prime Day.  Prime Day has outperformed virtually all estimates year-over-year on sales and order fulfillments.  In fact, Amazon has exceeded annual forecasts each year since 2012.  The pace of logistics growth has amazed supply chain experts.  Also, the innovations Amazon has introduced has created new metrics and new targets.  In brief, Amazon has innovated supply chains and their management for logistics, fulfillment, predictive analytics, and other topics, at a scale faster than any company in history.  Amazon’s growth and performance has continued to impress industry thought leaders.

This Prime Day spawned an industry-wide strategy among retailers and brands to offer their own “deal days”, which some of have labeled “with no membership fees necessary”.  There is no apparent end or limit to the Amazon Effect.

The online outages and mis-directions, however, along with other glitches for the initial few hours of the launch raises the question, has Amazon really become too big, too fast?  Does this incredible pace of logistics growth foretell other problems to come?  Amazon, of course, recovered from the technical difficulties and achieved remarkable sales in consumer electronics, home goods, apparel, pet products, office products, and other categories.  That said, with thousands of brands, (including Amazon’s 100 plus private labels) millions of products, and both expanding, it is logical to expect some dilution of service.  Opening so many distribution and fulfillment facilities, hiring, training, and retaining talented workers, along with attracting a steady stream of technology experts, (to name a few of the critical success factors) must be highly challenging. 

While we do not have hard evidence of any service dilution of perfect orders, we do have anecdotal comments from several current Amazon sellers that they are not valued; that they are told what to do and how to do it; and that they are just a number that is growing.  Of course, these are not necessarily the large volume sellers, although some grumbling is also being heard from the larger known retailers and brands.

We at MonarchFx are fully committed to treating each seller special.  Our focus on consumers is paramount regardless of seller volumes.

Our nationwide scale is broad, but our customer focus is deep.  Perfect orders to us means just that, for each MonarchFx seller.  MonarchFx exists as a friendly alternative to Amazon.  Our business and operations models are aligned around customer satisfaction.  We are innovative and committed to the best ecosystem of the future.  

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Tompkins Solutions Staff
Tompkins Solutions Staff

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