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, 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 ******* ****** ********, ***** ** ******** *********** with ****** ***************, ********* the ******* ** *** offering *** *** ** compares ** *** *** Anixter.

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

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

Poor OSDP Usage Statistics 2019 on Jul 09, 2019
OSDP certainly offers advantages over decades-old Wiegand (see our OSDP Access Control Guide) but new IPVM statistics show that usage of OSDP, even...
RaySharp Revealed - Major China OEM For Western Consumer Video Surveillance on Jul 02, 2019
RaySharp is mostly unknown, even among people in the video surveillance industry, though it is a major supplier of OEM surveillance equipment such...
Biometrics Usage Statistics 2019 on Jun 17, 2019
While face and fingerprint recognition are used regularly for smartphones, it is not as common in physical security. In this note, we examine...
ADT Eliminating Acquired Brands, Unifying Under 'Commercial' Brand on Jun 14, 2019
ADT is eliminating the brands of the many integrators it has acquired over the past few years, including Red Hawk, Aronson Security Group (ASG),...
Favorite Wireless Manufacturers 2019 on Jun 12, 2019
Many wireless options exist for video surveillance but how are integrator's overall favorites? 170 integrators answered the question: What is...
Axis Will Not Block Resellers on Jun 10, 2019
While Axis generally has strong favorability amongst integrators, the biggest complaint is their channel model, which results in smaller integrator...
Dumber Techs, Bad Box Movers, Says Australian Distributor on Jun 10, 2019
Techs today are "dumber" than they used to be, despite better education and training and that makes a typical day "frustrating" for one...
Directory of 30+ VSaaS / Cloud Video Surveillance Providers on Jun 07, 2019
This directory provides a list of VSaaS / cloud video surveillance providers to help you see and research what options are available. 2019 State...
Nortek and SDS Fight Over Failed Settlement on Jun 05, 2019
Distributor SDS said they reached a deal with Nortek but Nortek says no settlement was reached and the suit is still on. In this post, based on...
"New" Arecont Fixes Failures "Without A Fight" on Jun 05, 2019
The "old" Arecont was infamous not only for its camera failures but for making their "partners" fight to get them fixed. IPVM drew the ire of...

Most Recent Industry Reports

HD Analog vs IP Guide on Jul 16, 2019
For years, HD resolution and single cable signal/power were IP camera advantages, with analog cameras limited to much lower resolution and...
How To Troubleshoot Wiegand Reader Problems - Inverted Wiring on Jul 16, 2019
Wiegand is the dominant method of connecting access readers, but problems can arise for installers. In fact, one of the most difficult reader...
ZeroEyes Gun Detection Startup on Jul 16, 2019
A gun detection video analytics startup, ZeroEyes, is being led by a group of 6 former Navy SEALs, aiming to "save lives" by using AI to assist...
Motorola Acquires Watchguard, Adds to Vigilant And Avigilon on Jul 15, 2019
2 years ago, Motorola had no position nor relevancy to video surveillance. Now, they own major video surveillance, LPR and body camera providers...
Hikvision Global News Reports Directory on Jul 15, 2019
Hikvision has received the most global news reporting of any video surveillance company, ever, ranging from the WSJ, the Financial Times, Reuters,...
Vivotek Trend Micro Cyber Security Camera App Tested on Jul 15, 2019
Vivotek and Trend Micro are claiming five million blocked attacks on IP cameras, with their jointly developed app for Vivotek cameras. This new...
Beware African 50,000 IP Camera Contract Scam on Jul 12, 2019
A “Nigerian Prince” scam for the video surveillance market is going around. You, or at least we, could be lucky enough to be the single bidder for...
Axis ARTPEC-7 P1375-E Camera Tested on Jul 12, 2019
Axis claims the new P1375-E box camera with ARTPEC-7 chip delivers "clear, sharp images in any lighting condition." But how well does it do? We...
Last Chance - Camera Course Summer 2019 on Jul 11, 2019
Last day to register is Thursday, July 11, 2019. This is the only independent surveillance camera course, based on in-depth product and technology...
Nortek Blue Pass Mobile Access Reader Tested on Jul 11, 2019
Nortek claims BluePass mobile readers are a 'more secure and easy to use approach to access', but our testing uncovered security problems and...

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