Question

How would you describe Amazon's strategy behind the placement of marketplaces and fulfillment centers around the world?

Answer 1

Amazon is decreasing the costs of placing the warehouses by selecting land which is cheap.

Amazon is also making itself immune to changes in one particular market. If the market of USA goes down it has other countries where it succeed by getting a good growth rate.

Another strategy followed is placing the the fulfillment center in the middle of the continent which will help it service a large number of countries. For eg the large fulfillment centers in Germany can be used to service Austria, Poland and other neighboring countries.

Lately Amazon is moving towards a Omnichannel presence which is reflected in it buying Whole foods. It will add considerable distribution advantage to the company.