Amazon Aims To Compete With ADI and Anixter

By: Brian Rhodes, Published on Jun 01, 2015

The ambition of Amazon has no end.

Recently, we explained how Amazon has gotten into the security installation business which generated strong debate and concern.

At the same time, Amazon is also expanding into commercial distribution.

How much of a threat to traditional security distributors? In this note, we examine Amazon Business [link no longer available], based on multiple discussions with Amazon representatives, examining the details of the offering and how it compares to ADI and Anixter.

*** ******** ** ****** has ** ***.

********, ** ********* ********* *** ****** **** the ******** ************ ************* ********* ****** ****** and *******.

** *** **** ****, Amazon ** **** ********* into ********** ************.

*** **** ** * threat ** *********** ******** distributors? ** **** ****, we ******* ****** ******** [**** no ****** *********], ***** ** multiple *********** **** ****** representatives, ********* *** ******* of *** ******** *** how ** ******** ** ADI *** *******.

[***************]

Commercial *****

****** ** ******* ***** 'Business' ******* ** ******* it ** * *** for ********** ********* ** *** into ***** **** ****** marketplace *** ********* ******* to ****** ********.

****** ** ******** **** memberships **** *** **** products ** ******** ********, but ****** ******** ******* of *********** ********** ************ and *** ******* **** normal ****** ********:

  • ** ****** *******: ***** *** **** to **** ********* **** ID ******* **** ***** to ******** ******** ** internal ********** *******.
  • ***** *******: ******** ********* *** download ******** ********* ******* date ******, **************, ** by ** *******. ***** reports *** ********* ** .csv ******* *** ***** importable **** ********** ** inventory ********** *******.
  • **** ********: *** ****** ** ship ******** ******** ** a *** **** ** different ******* ***** **** the ******* ******* ** file. 
  • *** *********: *** ********** ********* like ********, ***-*******, *** Governments, ****** ****** '****-****' application ** ***** *****.

********** **** ****** ******** *** ** ******, *** ********* *** basic *********** ******* ** unchanged **** ******* *******. 

Free ***-*** ********

****** **** ***** ** entice ********** ** ******** free ***-*** ******** *** purchases **** $**, ******* to *** *** ****** Prime ***** *** ******** purchases.  

** ********* ** **** day ******* ** *********, Amazon ********** ****** ********* offer *** ****** *** affiliate ****** *** ***.  If *********, **** ******** ranges ******* ** *** 8X ****** '**** ******' ground ******** *******. ** 'Business' ********* *** **** 'Prime' ******* (** ********** $99 *** ****), *** $49 ***** ******* **** away. 

** ******** ** *********** security ************ **** ********* bill ******* ** **** order **** ********* ***** than *** ***** ******, this ******* ****** ** ship ** *** ******* if *** ******* ** met.

Security *********

*********** *** **** ******** that *** ** ********* with ** '****** ********' account *** ********* ********* on ******. *** *******, a **** ***** ** some ********** ******** ****** ***** ******* available **** ******** *******:

*******, ******'* ************ ** surveillance ******** *** *** more ******* *** ********* than *********** ************.

Discounts *******

******* ******* ****** ** generally ******* ** ***** starting ****** **** *********** distributors. *******, ****** ******* Amazon **** *** ******* ********** prices, ******* *********, ******* pricing, ** ***** ****** discounts.

************, ** * ************ requires ******* ********* ** training ** ******** ********, as ** ****** **** VMS ** ******* ****** lines, ** **** *** likely ** ********* ******* any ****** ******** *********.

****** **** **** ** offer **** *********, ******* ** found ** ******** ** discounted ** ********** ********* to ******** ********.

****** ********* *** ******* pricing ******** ** **:

"******** ******* ** ******* at *** ****** ** vendor's ********** *** '*****' may ********* **** *** several *****, ****, *****, or **** *******. ******** ******* ** * fairly *** *******, ** we *** ***** ******* on ******** **** ***** with **** ******* ******* system. "

***********, *** ***** ****** are ***** *** * limited **** *** ** the ********'* ******. ** discounts *** ****** ********** are *******.

Credit *****

******* ***** **** ************** consumer **** ********** ********** is **** ********* ****** terms **** ******* ****** payment ******* ** *****/******** rates **** * ****** of ****.

****** ** ******** ****** to '********' ********* ******* a ******** ****** ******** called '********* ******'. ** ******* **** approved ******** **** ** allowed *** ** ***** with ** ******** ******** full ******* ** *********. APR ** **.**% ******* to *** *** ********.

Phone *******

*** **********, ****** ****** a ****** ** ******* for ******* *******.  *** fastest ****** ** ***** support, ***** ** **** to * ******** '******* manager' for **** ******** *******.  

*******, ****** * *********** security ***********, *** *** had ** ******** ********* about ******** ******** ** any ******** ** *******.  We ***** *** *** for ********* ******* *******, nor *** *** ******* able ** ********* *** products ** **** ***** sale ****** ** * particular ********.  

Manufacturer **** ** ******

** ****** ******** ***** off, ** ***** ******** manufacturers ** ******* ********* to **** ******** ** Amazon. ************, ****** *** been * ******** ******* retailer, ************ ******* ******* large ********** ** **-******* like ***********. **** ***** new ***************, ******'* ***** of ******* ******** ******* availability ***** ** ******** as ********* **** ****** as * **** ********** distribution ******.

Comparison *** / ******* ** ******

*** **** ********** ****** has **** *********** ******** distributors ***:

  • *********** ****: **'* *** **** security - **'* **********.  Unlike ******** ************ *** draw * ******** ****** their *********, ****** **** not. *** **** ***** your *** ****, **** paper, *** *** ******* also ** **** ** sell *** ******* *** wire.  **** ***** ********** can ** **** **** efficient ******* ******* ** multiple *******, *** **** place ****** **** ***.
  • *******/********* *******: ** **** ****** * lemon ** ****** ***? While ** ****** ****** is ********** ** ******* risk, ******'* ********-***** '****' rating ****** ** ****** than *** ******* *** typically *** ********* *********** websites.
  • *********** *******:***** *** *** ***** criteria ** ********* **** to *********** ****** ** Amazon's ***********: *** ***** and '****' ******. *** heavy **** **** ***-******* plays ** ********* ****** result ******** ****** ****** guarantees ******* ** *** lowest ******. ***** ************ is ******* * ***-****** vertical, ****** ******** ** even **** ** *********** the ****** ******* ** show ** *****.

*******, ***** *** **** drawbacks ** ******'* ********:

  • ******* *********:****** *********** ******** ************, Amazon *** **'* ********** may ** '**** ******' ******* *** **** items. ** * *********** dealer **** *** **** a ********** ****, **** often *** **** ** order **.  *******, ** it **** *** **** up ** ** ****** search, ** ****** ** not *********. ***** ****** as * **** ****** for ******** ***** ** risky, ******* ***** ** no ********* *** ********* furnishing *** **** ***** will ********.
  • ** ********* *******:** *** **** *********, you're ****** *** ** luck.  ******* ********** ** support **** ********* ** not *** ** *** question, *** ** ** a *** ******* *** risk **** ******.
  • ****** *** ****: ****** *********** ******** distributors **** *** ***** potential ********* ** ********* in *** *****, *** basically **** ******* **** than * *** ** number *** * ****** card ** ***. ***** this ****** *** ****** been ********* ** ******* accounts, *** ****** ** business ********** *** ******* equipment ******* **** **** more.

End ***** ********

****** ******** *** ******** purchasing **** ******* ******* end ***** ******* *** a **-******** ******** *** security ****.  **** ** reseller ******* ** **** happy *** ***-******* ***** king, *** '******** *********** age' ********* ** ****** traditional ************. *********** ********* line-item ****** **** ******** markups ******** ** **** as ***** * ****** engine *** * ************ portion ** *** ******** market.

Reseller ********

*******, ***** *** ** redeeming ***** *** *********** resellers ***:

  • ********* **********: **** *** ***** emphasis ** ***-*****, ******* multiple ****** *** ****** the ****** ** ****** an ************* *******. ******** around *** **** ******* and ************ ** **** ****** through ******.
  • ****** ****** ********: ***** ****** ******** will *** ****** ******* ADI, *******, ** ********* security ************ ********, ** may **** **** ****** the '****** ****' *** many ***** ***** *** quick ******** ******. *** limiting ****** ********** ****** from ***** ******** ******** distributors ** *** ********** availability ** **** *****.  Many ***********, *** ** small, **** **** ****** as ******** ** **** distributor ******* *** ************ in *****.

Comments (12)

Like any online store, Amazon is great if you know exactly what you want, but where traditional wholesalers have the advantage is their knowledgable sales staff. OK, I know how sarcasistic that sounds, but there is always that one person at ADI and maybe two at Tri-Ed who have worked their long enough to offer advice. Imagine calling (emailing?) Amazon and asking what device you need to allow you to power a 30watt PTZ camera over 400m away? Or asking what credentials are compatible with a specific access control unit.

Now if Amazon creates a "systems group" that can answer the phone and answer these questions and commits to it long-term, they could really hurt traditional distributors.

So call Anixter, ADI or Tri-Ed to get info and then buy on Amazon? I am thinking that is what will happen if the prices are lower on Amazon.

I've tried emailing ADI. Got crickets. I take it they answer their email for some people?

Rodney, who'd you email at ADI? ADI's pretty big.

I went to the web site and found my local office and called and emailed
them asking about what it takes to set up an account. I go through this
exercise every time someone asks me to find things on the street. I
keep finding more and more online operations so unless one of these old
smokestack distributors figures out to talk to me it don't happen.

I already use Amazon for quick one off items or items where distribution lead times are too long. I can get guaranteed arrival dates, tracking info, and quick pricing on Amazon much easier than any other distributor. Ingram Micro is nearly as good, but eAnixter and ADI's portal and communication of tracking info leave a lot to be desired. There is a lot of catching up that needs to be done to compete in the Internet era by these two. The RMA process with Amazon is very simple as well. No need to wait a week for an RMA, just request it online. As stated in the article, the downside is that there is no real customer service at Amazon... They truly just push boxes out the door. If you know exactly what you want it is not too bad of deal, as long as it is ordered from Amazon or "fulfilled by Amazon" stores.

Its the relationship that counts- I have a particular distributor who knows me like a book, and knows where not to "tread" as not to aggravate me. I like the relationship because it makes doing business easier, and the product knowledge really helps...I am talking about when a camera has a certain power requirement or something special that only training or hands on experience would provide to my distributor. I have also been offered better alternatives by my distributor when I order stuff, whether it be in price or quality.

We have signed up to distribute products through Amazon Business with our Amcrest brand (Dahua OEM). Regarding the technical support issue, if customers have questions we find they will often find our direct website, call us, ask questions and then place the order directly on Amazon.

From the customer's viewpoint they are eager to purchase from Amazon directly as they are assured short lead times, guaranteed arrival info, tracking and ofcourse best pricing and no-questions asked return policy.

Adam, good feedback.

How do you deal / handle volume discounts? Let's say someone wants to buy 100 cameras or has bought 1000 cameras so far this year, how do they get lower prices?

John,

The way we have set it up right now is that business customers get a different (lower) price than regular customers. Currently its set at a flat price of around 15-20% off the current retail depending on the SKU.

If a customer wants to place a much larger order such as 100 or 1000pcs and needs a further discount, they would usually call us directly to place the order and request the discount. In such case we would prefer to sell to them directly rather than through Amazon in order to save Amazon selling fees on such a large order.

However, if the customer insisted to purchase through Amazon, we would essentially setup a discount code for the customer which would provide the additional funds off the final purchase price.

From what we see currently (only been live about 2 weeks), customers are not purchasing hundreds of systems or cameras directly on Amazon. Those type of customers will usually call us directly to discuss their particular situation.

Really? Amazon is still listed as an unauthorized distributor by Hikvision as of 6/12/2015.

Yes, it appears that there are a lot of re-sellers buying Hikvision cameras from China selling them on Amazon. This creates many issues for Hikvision USA, both on the channel and support side.

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

Viisights Raises $10 Million, Behavior Analytics Company Profile on Dec 09, 2019
Viisights, an Israeli AI analytics startup marketing "Behavioral Understanding Systems", announced $10 million Series A funding. We spoke to...
Access Startup Multi-Mount Aims To Streamline Reader Installs on Dec 03, 2019
Startup Multi-Mount claims it makes installing access readers 'Fast', 'Secure,' and fit 'any size frame.' The company states its bracket 'fits most...
Vunetrix Health Monitoring Company Profile on Nov 26, 2019
Vunetrix boasts that they make the integrators the 'HERO' by using Vunetrix's monitoring. We spoke to Vunetrix to better understand their...
Wyze AI Analytics Tested - Beats Axis and Hikvision, Now Improved, Now Being Terminated on Nov 25, 2019
When we originally tested Wyze's free person detection deep learning analytics in July 2019, they performed well, with few false alarms, but a long...
Top 2020 Trend - AI Analytics on Nov 22, 2019
170+ Integrators answered: What do you think will be the top industry trend in 2020? Why? For the 4th year in a row, AI/video analytics was...
Top Manufacturers Gaining and Losing 2019 on Nov 18, 2019
2019 has been an explosive year for video surveillance, with the world's two largest manufacturers, Dahua and Hikvision, being sanctioned for human...
ADT Stock Surges - "Leading The Commercial Space" on Nov 15, 2019
Don't call it comeback... but maybe call it a commercial provider. ADT, whose stock dropped by as much as 2/3rds since IPOing in 2018, has now...
Open vs End-to-End Systems: Integrator Statistics 2019 on Nov 11, 2019
Preference for open systems is on the decline, according to new IPVM statistics. We asked integrators: For video surveillance systems, do you...
Biggest Low Light Problems 2019 on Nov 08, 2019
Over 150 integrators responded to our survey question: "What are the biggest problems you face getting good low-light images?" Inside, we share...
Axis Cracks Down On Illicit Channel Sales on Nov 01, 2019
Axis has stepped up efforts to crack down on illicit channel sales according to various industry sources, though, Axis denies this. Online sales...

Most Recent Industry Reports

ADT CEO Not Worried About DIY: "2 Discrete Markets" on Dec 13, 2019
ADT's CEO is not worried about DIY, characterizing DIY and ADT's DIFY as "2 discrete markets" at the Imperial Capital Security Investor's...
Hikvision CEO Alleged Illegal Activities Investigated on Dec 13, 2019
Hikvision's CEO Hu Yangzhong is under investigation for suspected illegal activities, according to the PRC's securities regulator. This has become...
Video Surveillance 101 Course Opened on Dec 12, 2019
IPVM is adding a Video Surveillance 101 course, designed to help those new to the industry to quickly understand the most important terms,...
Verkada Notification Outage on Dec 12, 2019
Verkada is suffering an event notification outage and analytic search failures. Inside, we examine what the issues are, what Verkada told IPVM...
Hikvision DS 2nd Gen Intercom Tested on Dec 12, 2019
With its newest IP intercom, Hikvision proclaims users can 'get full control over an entrance' regardless of where it is installed, home or office...
Honeywell 30 Series Cameras Tested Vs Dahua and Hikvision on Dec 11, 2019
Honeywell has infamously OEMed Dahua and Hikvision for years, but now they have introduced an NDAA-compliant line, the 30 Series, claiming "lower...
"Good Market, Bad Business Models" - Residential Security on Dec 11, 2019
Industry banker John Mack, at his company's annual event, took aim squarely at the problems in the residential security...
IP Camera Browser Support: Who's Broken / Who Works on Dec 10, 2019
For many years, IP cameras depended on ActiveX control, whose security flaws have been known for more than a decade. The good news is that this is...
Acquisitions - Winners and Losers on Dec 10, 2019
Most major manufacturers have been acquired over the last decade. But which have been good deals or not? In this report, we analyze the...
IP Camera Installability Shootout 2019 - Avigilon, Axis, Bosch, Dahua, Hanwha, Hikvision, Uniview, Vivotek on Dec 09, 2019
What are the best and worst cameras to install? Which manufacturers make it the hardest or easiest to install their cameras? We tested 35 total...