Amazon Aims To Compete With ADI and Anixter

Author: 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, based on multiple discussions with Amazon representatives, examining the details of the offering and how it compares to ADI and Anixter.

*** ******** ** ****** *** ** ***.

********, ** ********* ********* *** ****** **** *** ******** ************ ************* ********* ****** ****** *** *******.

** *** **** ****, ****** ** **** ********* **** ********** distribution.

*** **** ** * ****** ** *********** ******** ************? ** this ****, ** ******* ****** ********, ***** ** ******** *********** **** ****** ***************, ********* *** ******* of *** ******** *** *** ** ******** ** *** *** Anixter.

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

Commercial *****

****** ** ******* ***** '********' ******* ** ******* ** ** a *** *** ********** ********* ** *** **** ***** **** ****** marketplace *** ********* ******* ** ****** ********.

****** ** ******** **** *********** **** *** **** ******** ** personal ********, *** ****** ******** ******* ** *********** ********** ************ and *** ******* **** ****** ****** ********:

  • ** ****** *******: ***** *** **** ** **** ********* **** ** ******* that ***** ** ******** ******** ** ******** ********** *******.
  • ***** *******: ******** ********* *** ******** ******** ********* ******* **** ******, requisitioners, ** ** ** *******. ***** ******* *** ********* ** .csv ******* *** ***** ********** **** ********** ** ********* ********** systems.
  • **** ********: *** ****** ** **** ******** ******** ** * *** site ** ********* ******* ***** **** *** ******* ******* ** file. 
  • *** *********: *** ********** ********* **** ********, ***-*******, *** ***********, ****** offers '****-****' *********** ** ***** *****.

********** **** ****** ******** *** ** ******, *** ********* *** ***** *********** ******* ** ********* **** private *******. 

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

****** **** ***** ** ****** ********** ** ******** **** ***-*** shipping *** ********* **** $**, ******* ** *** *** ****** Prime ***** *** ******** *********.  

** ********* ** **** *** ******* ** *********, ****** ********** orders ********* ***** *** ****** *** ********* ****** *** ***.  If *********, **** ******** ****** ******* ** *** ** ****** 'best ******' ****** ******** *******. ** '********' ********* *** **** 'Prime' ******* (** ********** $** *** ****), *** $** ***** minimum **** ****. 

** ******** ** *********** ******** ************ **** ********* **** ******* on **** ***** **** ********* ***** **** *** ***** ******, this ******* ****** ** **** ** *** ******* ** *** minimum ** ***.

Security *********

*********** *** **** ******** **** *** ** ********* **** ** 'Amazon ********' ******* *** ********* ********* ** ******. *** *******, a **** ***** ** **** ********** ******** ****** ***** ******* ********* **** multiple *******:

*******, ******'* ************ ** ************ ******** *** *** **** ******* and ********* **** *********** ************.

Discounts *******

******* ******* ****** ** ********* ******* ** ***** ******** ****** from *********** ************. *******, ****** ******* ****** **** *** ******* ********** prices, ******* *********, ******* *******, ** ***** ****** *********.

************, ** * ************ ******** ******* ********* ** ******** ** purchase ********, ** ** ****** **** *** ** ******* ****** lines, ** **** *** ****** ** ********* ******* *** ****** Business *********.

****** **** **** ** ***** **** *********, ******* ** ***** ** examples ** ********** ** ********** ********* ** ******** ********.

****** ********* *** ******* ******* ******** ** **:

"******** ******* ** ******* ** *** ****** ** ******'* ********** and '*****' *** ********* **** *** ******* *****, ****, *****, or **** *******. ******** ******* ** * ****** *** *******, ** ** *** still ******* ** ******** **** ***** **** **** ******* ******* system. "

***********, *** ***** ****** *** ***** *** * ******* **** and ** *** ********'* ******. ** ********* *** ****** ********** are *******.

Credit *****

******* ***** **** ************** ******** **** ********** ********** ** **** favorable ****** ***** **** ******* ****** ******* ******* ** *****/******** rates **** * ****** ** ****.

****** ** ******** ****** ** '********' ********* ******* * ******** credit ******** ****** '********* ******'. ** ******* **** ******** ******** **** ** ******* *** 55 ***** **** ** ******** ******** **** ******* ** *********. APR ** **.**% ******* ** *** *** ********.

Phone *******

*** **********, ****** ****** * ****** ** ******* *** ******* support.  *** ******* ****** ** ***** *******, ***** ** **** to * ******** '******* *******' *** **** ******** *******.  

*******, ****** * *********** ******** ***********, *** *** *** ** specific ********* ***** ******** ******** ** *** ******** ** *******.  We ***** *** *** *** ********* ******* *******, *** *** our ******* **** ** ********* *** ******** ** **** ***** sale ****** ** * ********** ********.  

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

** ****** ******** ***** ***, ** ***** ******** ************* ** smaller ********* ** **** ******** ** ******. ************, ****** *** been * ******** ******* ********, ************ ******* ******* ***** ********** to **-******* **** ***********. **** ***** *** ***************, ******'* ***** of ******* ******** ******* ************ ***** ** ******** ** ********* view ****** ** * **** ********** ************ ******.

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

*** **** ********** ****** *** **** *********** ******** ************ ***:

  • *********** ****: **'* *** **** ******** - **'* **********.  ****** ******** distributors *** **** * ******** ****** ***** *********, ****** **** not. *** **** ***** **** *** ****, **** *****, *** mop ******* **** ** **** ** **** *** ******* *** wire.  **** ***** ********** *** ** **** **** ********* ******* instead ** ******** *******, *** **** ***** ****** **** ***.
  • *******/********* *******: ** **** ****** * ***** ** ****** ***? ***** ** rating ****** ** ********** ** ******* ****, ******'* ********-***** '****' rating ****** ** ****** **** *** ******* *** ********* *** searching *********** ********.
  • *********** *******:***** *** *** ***** ******** ** ********* **** ** *********** itself ** ******'* ***********: *** ***** *** '****' ******. *** heavy **** **** ***-******* ***** ** ********* ****** ****** ******** almost ****** ********** ******* ** *** ****** ******. ***** ************ is ******* * ***-****** ********, ****** ******** ** **** **** by *********** *** ****** ******* ** **** ** *****.

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

  • ******* *********:****** *********** ******** ************, ****** *** **'* ********** *** ** '**** ******' ******* *** **** *****. ** * *********** ****** **** not **** * ********** ****, **** ***** *** **** ** order **.  *******, ** ** **** *** **** ** ** an ****** ******, ** ****** ** *** *********. ***** ****** as * **** ****** *** ******** ***** ** *****, ******* there ** ** ********* *** ********* ********** *** **** ***** will ********.
  • ** ********* *******:** *** **** *********, ***'** ****** *** ** ****.  ******* affiliates ** ******* **** ********* ** *** *** ** *** question, *** ** ** * *** ******* *** **** **** buying.
  • ****** *** ****: ****** *********** ******** ************ **** *** ***** ********* ********* to ********* ** *** *****, *** ********* **** ******* **** than * *** ** ****** *** * ****** **** ** buy. ***** **** ****** *** ****** **** ********* ** ******* accounts, *** ****** ** ******** ********** *** ******* ********* ******* that **** ****.

End ***** ********

****** ******** *** ******** ********** **** ******* ******* *** ***** looking *** * **-******** ******** *** ******** ****.  **** ** reseller ******* ** **** ***** *** ***-******* ***** ****, *** 'internet *********** ***' ********* ** ****** *********** ************. *********** ********* line-item ****** **** ******** ******* ******** ** **** ** ***** a ****** ****** *** * ************ ******* ** *** ******** market.

Reseller ********

*******, ***** *** ** ********* ***** *** *********** ********* ***:

  • ********* **********: **** *** ***** ******** ** ***-*****, ******* ******** ****** and ****** *** ****** ** ****** ** ************* *******. ******** around *** **** ******* *** ************ ** **** ****** ******* ******.
  • ****** ****** ********: ***** ****** ******** **** *** ****** ******* ***, *******, or ********* ******** ************ ********, ** *** **** **** ****** the '****** ****' *** **** ***** ***** *** ***** ******** offers. *** ******** ****** ********** ****** **** ***** ******** ******** distributors ** *** ********** ************ ** **** *****.  **** ***********, big ** *****, **** **** ****** ** ******** ** **** distributor ******* *** ************ ** *****.

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

ISC East 2018 Mini-Show Final Report on Nov 16, 2018
This is our second (updated) and final show report from ISC East. ISC East, by its own admission, is not a national or international show, billed...
Magos Radar Company Profile on Nov 12, 2018
Magos America General Manager Yaron Zussman admits when he first came across Magos, he asked himself: "What's innovative about radar?" Be that as...
Video Surveillance Hard Drive Size Statistics 2018 on Nov 08, 2018
What is the most common hard drive size for video surveillance? 150+ integrators answered: What size hard drive do you most commonly use? What...
Favorite Video Surveillance Hard Drive Manufacturer 2018 on Nov 06, 2018
Who is the favorite hard drive for video surveillance use? 150+ integrators answered: What is your preferred brand/model of hard drive for...
Worst Products on Nov 03, 2018
Security integrators periodically report on their favorite and worst products to IPVM. These are known integrators who IPVM pays to answer surveys....
Video Surveillance Hard Drive Failure Statistics 2018 on Nov 02, 2018
Hard drive failures can be significant service problems but how common of an issue are they in video surveillance? How long do drives last when...
Cloud Video Storage Usage 2018 on Oct 31, 2018
Storing email and documents in the cloud have long been common, with on-site email or file servers increasingly eliminated. However, what about...
Resideo IPOs, Then Plunges on Oct 31, 2018
ADI and Honeywell Homes management have been touting their spinout and IPO for months, including appearing on Wall Street as they widely shared on...
Wyze Explosive Growth Disrupting Consumer IP Camera Market on Oct 30, 2018
Wyze, a company founded only in 2017, is poised to disrupt the consumer IP camera market by combining American marketing and Chinese manufacturing...
ADT Acquires Red Hawk, Becomes Billion Dollar Commercial Business on Oct 25, 2018
With its ~7th commercial acquisition in the past year, ADT is transforming itself from a residential provider to a commercial player with now more...

Most Recent Industry Reports

'Sticker' Surveillance Camera Developed (CSEM Witness) on Nov 16, 2018
The Swiss Center for Electronics and Microtechnology (CSEM) has announced what it calls the: world’s first fully autonomous camera that can be...
ISC East 2018 Mini-Show Final Report on Nov 16, 2018
This is our second (updated) and final show report from ISC East. ISC East, by its own admission, is not a national or international show, billed...
Facial Detection Tested on Nov 16, 2018
Facial detection and recognition are increasingly offered by video surveillance manufacturers. Facial detection detects faces in an image/video...
Throughtek P2P/Cloud Solution Profile on Nov 15, 2018
Many IoT manufacturers either do not have the capabilities or the interest to develop their own cloud management software for their devices....
ASIS Offering Custom Research For Manufacturers on Nov 15, 2018
Manufacturers often want to know what industry people think about trends and, in particular, the segments and product they offer.  ASIS and its...
Hikvision Silent on "Bad Architectural Practices" Cybersecurity Report on Nov 14, 2018
A 'significant vulnerability was found in Hikvision cameras' by VDOO, a startup cybersecurity specialist. Hikvision has fixed the specific...
French Government Threatens School with $1.7M Fine For “Excessive Video Surveillance” on Nov 14, 2018
The French government has notified a high-profile Paris coding academy that it risks a fine of up to 1.5 million euros (about $1.7m) if it...
Integrator Credit Card Alternative Divvy on Nov 13, 2018
Most security integrators are small businesses but large enough that they have various employees that need to be able to expense various charges as...
Directory of Video Intercoms on Nov 13, 2018
Video Intercoms, also known as Video Door-Phones or Video Entry Systems, have been growing in the past decade as more and more IP camera...
Beware Amazon Go Store Hype (Tested) on Nov 13, 2018
IPVM's trip to and testing of Amazon Go's San Francisco store shows a number of significant operational and economic issues that undermine the...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact