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Comment by masko | Hacker News Reader

I might be drinking the amazon koolaid but Shopify’s online service and physical product distribution can’t even come close to what amazon has developed. They’re not a real threat. Amazon is really at least 15 years ahead in distribution and operations. We’re using robotics to automate a ton of processes. Jeff Wilke revolutionized the fulfillment centers. Shopify’s platform mainly sells niche things at low throughputs. Amazon is about how can we sell more in the same amount of time so we can continue lowering prices to get more customers and keep selling more.

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> Jeff Wilke revolutionized the fulfillment centers

After 7 years in Amazon Fulfillment, I'll say this: we're doing a mediocre job- fortunately no one else is doing much better. But still, we've got 25 years of legacy software and processes to carry with us wherever we go.

There's a lot of potential for a new entrant to radically and rapidly innovate and compete inside the warehouse. Shopify's business model is different enough to make the fulfillment problem different in a few fundamental ways that might let them undercut further. Lots of potential.

There's also a great big Shopify office opening not too far from Amazon Toronto. And wouldn't you know it, there's a big chunk of Amazon Fulfillment right here in this office. I'm expecting to see poaching begin soon, just like when Uber opened here and hired a lot of Amazon Flex talent. (Non-competes sure are hard to enforce in Ontario).

I really hope they can prove themselves a viable competitor.

> After 7 years in Amazon Fulfillment, I'll say this: we're doing a mediocre job- fortunately no one else is doing much better. But still, we've got 25 years of legacy software and processes to carry with us wherever we go.

Mind expanding more on the specific kinds of baggage holding back fulfillment at Amazon?

To avoid any NDA troubles, I'll keep it pretty generic: a facility designed and built in 2009 is going to be very hard to modify such that it's operating any differently than it did it 2009. Physical things are harder to upgrade than software. Built a new robotic system? That's great for new facilities, but what happens to the ones that predate it? Amazon has hundreds of facilities.

And on a software front, those older facilities are using different physical processes which need different software than the new tech. How do you architect the whole thing such that the increasing complexity of this ecosystem doesn't create exponential work as it needs to all integrate together and be maintained?

Shopify, by contrast, isn't carrying that legacy on their back. They're potentially on the same exponential curve, but they are much farther on the left and maybe they can find a way to make it a smaller exponent. Maybe. We'll see how it goes.

Except Amazon are terrible to deal with for even a merchant doing a few million with them. Both through the market place and direct.

They damage your stock (or maybe the robots do), then return it.

They claim money from you after random audits, which after wasting time you find you don't owe.

They randomly deactivate your products and you can't speak to anyone to get it fixed.

They charge very high fees. Even direct to Amazon you have all the kick backs to pay.

The lure of Amazon is not fulfillment (there are loads of logistics houses it there). It is the giant customer base. I look after some Shopify stores, and they just can't do the volumes that Amazon do

What matters more then operations is customers. Operations just makes amazon a low cost leader and in that regard sure. But Shopify can beat Amazon through the platform of independents providing more selection and brand connection that may allow customers to be willing to pay a bit more

Third-party sellers at Amazon don't have robots, and I suppose they fulfill a considerable amount of the volume.

Third parties get access to Amazon's robots when they warehouse their product at Amazon. And access to prime shipping, etc..

Sure they do, Amazon fulfillment is a giant business.

https://services.amazon.com/fulfillment-by-amazon/benefits.h...

Well most of the time when I order something from a third-party vendor, it doesn't come in an Amazon box, so I suppose it is handled by the vendor, not Amazon.

More than half of the items bought on Amazon and from a 3rd party seller but fulfilled by amazon. It arrives in an Amazon box in 2 days and most people don't realize it was from a 3rd party seller.

but it's not a Trump business

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