A VALUE chain is a business model that includes the full range of activities needed to create a product or service, from procuring raw materials and manufacturing functions through to marketing activities. Online giant Amazon well understands the use of this analytical framework. It assumes full responsibility for logistics, customer service, and product returns via its Fulfilment By Amazon (FBA) system. If a customer orders an FBA item and an Amazon owned-inventory item, the company ships both items to the customer in one box, a gain for efficiency. The use of FBA is optional for sellers, and this choice makes the products of third-party sellers eligible for Amazon Prime free two-day shipping, free shipping and other benefits. This logistics infrastructure is one of Amazon competitive advantages, and it caught the eye of the BV judging panel. The result? A win for Amazon: the 2019 award for Best e-Commerce Value Creation (Global).
