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)

Scott Sheldrake

06/01/15 03:23pm

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.

Avatar

Ross Vander Klok

IPVMU Certified | In reply to Scott Sheldrake | 06/01/15 04:10pm

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.

Rodney Thayer

In reply to Scott Sheldrake | 06/12/15 04:23pm

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

John Honovich

IPVM | In reply to Rodney Thayer | 06/12/15 06:33pm

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

Rodney Thayer

In reply to John Honovich | 06/12/15 07:58pm

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.

Undisclosed Integrator #1

06/02/15 12:25am
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.

Undisclosed Integrator #2

06/02/15 02:16am

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.

Adam Ravat

06/02/15 02:13pm

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.

John Honovich

IPVM | In reply to Adam Ravat | 06/02/15 02:22pm

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?

Adam Ravat

In reply to John Honovich | 06/02/15 02:33pm

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.

Rodney Thayer

06/12/15 04:22pm

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

John Honovich

IPVM | In reply to Rodney Thayer | 06/12/15 06:34pm

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

Anixter Resisting Takeover From Competitor, Bidding War Emerges, Wesco Wins on Jan 13, 2020
Mega distributor Anixter is going to be acquired but by whom? Initially, Anixter planned to go private, being bought by a private equity firm....
End User Buying Axis At Prices Better Than Axis Gold on Jan 10, 2020
IPVM recently found an integrator contract with an end-user that guaranteed the end user could buy Axis products at a price / discount better than...
Security Sales Course January 2020 - Last Chance on Jan 02, 2020
Notice: This is the last chance to register for the course. This sales course is customized for the current needs and challenges specific to...
Hikvision USA Fights LTS on Nov 04, 2019
Hikvision's USA subsidiary is fighting with LTS, having recently quietly dropped LTS as an authorized distributor amidst ongoing face-offs between...
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...
Online Video Surveillance Sales Comparison - Amazon, B&H, CDW, LTS, Super Circuits, More on Jul 31, 2019
IPVM has uncovered the key trends and top options being offered across commonly used surveillance sellers. How has the market shifted since we...
Hikvision USA Giving Free Cameras In Biggest Flash Sale on Jun 26, 2019
Hikvision redefined sales promotions in the US video surveillance market, starting at the end of 2015, with across the board discounts. Now,...
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...
Undercutting Partners, Arbitech Sells Millions In Unauthorized Axis on Mar 29, 2019
One of integrator's top complaints about Axis is poor margins. An enterprising, ethically questionable distributor is solving that. Inside this...

Most Recent Industry Reports

Pivot3 Mass Layoffs on Mar 27, 2020
Pivot3 has conducted mass layoffs, the culmination of grand hopes, a quarter of a billion dollars in VC funding, and multiple failures to gain...
Athena CEO Criticizes 'Deplorable' 'Nitpicking', IPVM Refutes on Mar 27, 2020
Athena Security's CEO Lisa Falzone has strongly objected to IPVM's reporting on Athena, calling it 'deplorable' and repeatedly criticizing IPVM's...
Hikvision Admits Sanctions Harming Its Financial Performance on Mar 27, 2020
While Hikvision initially downplayed being sanctioned for human rights abuses, the company is now admitting a significant impact in a new PRC...
New Axis M30 Cameras Tested on Mar 26, 2020
Axis has released a new generation of, for them, relatively low cost M30 series cameras, claiming to deliver "sharp video quality even in poor...
Coronavirus Shuts Down ADT Door Knockers on Mar 26, 2020
Coronavirus has another victim - this time, alarm giant ADT has stopped all door to door sales. Door knockers are a critical but controversial...
Access Control Course Spring 2020 - Save $50 Last Day on Mar 26, 2020
Register Now - Spring 2020 Access Control Course. Today, March 26th is the last day to save $50. IPVM offers the most comprehensive access...
Convergint Coronavirus Cuts on Mar 25, 2020
One of the world's largest security integrators, Convergint, has made a major move to handle the impact of coronavirus, with cuts across the...
VSaaS 101 on Mar 25, 2020
Video Surveillance as a Service (VSaaS) is the common industry term for cloud video. But what does it mean? How does it all work? Inside this...
TVT / InVid Facial Recognition Tested on Mar 25, 2020
Facial recognition is frequently sold for thousands of dollars per channel but some China manufacturers are offering full facial recognition...
IPVM Launches On-Demand Courses on Mar 24, 2020
For nearly a decade, IPVM has been a leader in online live courses. Now, we have added on-demand versions for all courses. The same course...