Due to the several communication chains that exist between the players in the supply chain management, the Amazon must establish a number of communication networks that include the Electronic Data Interchange, internet, extranet and intranet.
The above communication channels are imperative in managing Amazon sales, finance while reducing the costs from internal controls. It is worth noting that, E-Business enables the management of the supply and demand while eliminating the other distribution costs. Mougayar (1998) ecommerce reduces the price of a product by 35%.
Despite the above advantages, security is a major concern. To manage all the security concerns, a number of E-Business firms are engaging in Collaborative Planning, Forecasting, and Replenishment (CPFR) which is more secure and faster (Seifert, 2003, p27).