Amazon’s Impact on Electronic Distributor Industry

Amazon’s Impact on Electronic Distributor Industry

Many electronic component buyers and distributors have been keeping a watchful eye on after the Internet-based retailer announced in early 2015 it had established its Amazon Business division. The site is currently selling many business-related products – including electronic components.

The authorized electronics distribution industry has been facing pressure from independent sales channels for some time. Since many of these companies, except for a few major independents, are not required to follow industry standard quality guidelines, damaged or counterfeit components have entered the supply chain from the open market. To date, Amazon business has not announced authorized relationships with component manufacturers.

Services that Amazon provides are also provided by electronics distributors; such as fast shipping, business-only pricing, purchasing system integration, customer support and comprehensive product information. However, the Internet-based retailer does not have the ability to provide various necessary quality inspection processes to mitigate counterfeit products from entering into the production lines.

Because of this, it is said franchise distributors will suffer the most from Amazon Business’s entrance into the market. Since Amazon Business does not offer a comprehensive quality inspection – including chemical testing, baking, microscope verification, decapsulation, along with many other services which is provided by leading independent distributors, – it is thought independent distributors will not be affected by the growing Internet-based electronic components retailer. Amazon Business cannot emulate the level of expertise major independent electronics distributors offer their customers.

With 38+ years in the industry, Advanced MP Technology (AMPT) has the expertise, highly-effective resources and a proven track record for sourcing current, obsolete and end of life (EOL) electronic components. AMPT has the ability to facilitate multi-year purchases (MYP) and offer Life Cycle Assessment (LCA) support for the preemptive planning of at-risk components. Furthermore, our numerous certifications and memberships back our robust infrastructure and high quality standards.