View Full Version : Amazon Made-on-Demand



Pete
03-03-2019, 11:33 AM
Amazon to bring one of first made-on-demand facilities to OKC (Amazon to bring one of first made-on-demand facilities to OKC)

As Amazon is powering towards an opening later this year at its massive fulfillment center near Will Rogers Airport, the company has submitted plans to bring another large operation to Oklahoma City.


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The on-line retail giant has leased 111,606 square feet of warehouse space located at 6101 SW 44th Street. The building was constructed by Industrial Developers of Oklahoma, the same Tulsa company that built Amazon's 300,000 square foot sortation operation at 1414 S. Council.

The new plant will produce made-on-demand items for Merch by Amazon, a service where content creators can upload their own artwork, have items printed (usually t-shirts and other clothing) and have it marketed on the Amazon website.



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When a product is sold, it is delivered through the Amazon Prime service and a royalty is paid to the creator.

Currently, printing items through Amazon is by invitation only through an application process.

A similar plant was just opened in suburban Philadelphia which contains 48 industrial printers, 16 giant dryers as well as pollution control equipment and has the ability to operate around the clock. The company is expected to open many more made-on-demand plants in the coming years.


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Last year, Amazon was awarded a patent for its new automated system that facilitates the rapid production of clothing, enabling Amazon to create and ship directly to the customers, bypassing middlemen and the huge oversees manufacturers who currently make most clothing in the U.S.

The move is seen as competition for silk-screeners who customize the same sort of items for various customers.

The number of employees is not presently known.

This would be the fourth Amazon facility within Oklahoma City: 2,560,00 square foot fulfillment center at 9201 S. Portland, the previously mentioned sortation facility, and 60,000 square foot delivery warehouse at 4401 E. Hefner.

It is estimated the fulfillment center alone will create 1,750 full-time jobs.


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d-usa
03-03-2019, 11:41 AM
I’ve been watching this building go up and have been wondering what it will be.

Pete
03-03-2019, 11:49 AM
I’ve been watching this building go up and have been wondering what it will be.

Yeah, I saw the building permit a long time ago and knew it was the same developer that did Amazon's sortation facility, so I assumed it had something to do with them.

Amazon finally filed their building permit application for their finish out.


Just another business (screenprinting) they are trying to reinvent and conquer.

OKC Guy
03-03-2019, 12:06 PM
Yeah, I saw the building permit a long time ago and knew it was the same developer that did Amazon's sortation facility, so I assumed it had something to do with them.

Amazon finally filed their building permit application for their finish out.


Just another business (screenprinting) they are trying to reinvent and conquer.

Thats the only concern, how many local screenprinters they put out of work. So to truly understand impacts will take a few years or more to see net loss vs net gain. And do the new jobs pay as much as the ones put out. I like progress but there are ripple effects. I assume this is for local area or wonder if its regional? If regional it may not hurt current business as much while drawing in out of area work.

dankrutka
03-03-2019, 12:09 PM
I've finally made the move to quit using Amazon whenever possible. These tech barons like Amazon and Facebook and Google lack operate in such unethical ways and are just gaining too much power IMHO.

Plutonic Panda
03-03-2019, 12:33 PM
^^^^ I agree. They might not be much better but I have been using Apple as much as possible just due to their emphasis on privacy. They do seem to treat their employees good.

d-usa
03-03-2019, 01:11 PM
Thats the only concern, how many local screenprinters they put out of work. So to truly understand impacts will take a few years or more to see net loss vs net gain. And do the new jobs pay as much as the ones put out. I like progress but there are ripple effects. I assume this is for local area or wonder if its regional? If regional it may not hurt current business as much while drawing in out of area work.

I don’t know if it will impact local screenprinters all that much. I think the biggest competition will be all the other on-demand screenprinting and design companies already online.

Pete
03-03-2019, 01:16 PM
^
Yes, specifically CafePress.


The Amazon model is different than most screenprinters. Merch is more about marketing shirts and other apparel to a broad market, then paying the creator a royalty.

I'm sure they will do a lot of custom stuff for events and companies, but there is also a whole other market for people who just put their designs out for everyone to see, and then get a royalty for anything sold through Amazon.

stile99
03-03-2019, 01:43 PM
Not to come to the defense of Amazon, but how many local screenprinters they put out of business would probably be the same number as the local screenprinters who'll print one shirt. If I want one shirt that has a drawing I did, or if I'm an artist who wants to sell shirts with my work on them but don't want 500 of them sitting in my living room. I think Amazon might be the way to go. If I'm hosting an event and need a couple thousand, I don't really think I would look to Amazon to fill that need.

Laramie
03-03-2019, 01:45 PM
Doesn't necessarily dictate OKC will lose jobs as a result of the Amazon Made-on-Demand Center. Our current screen printer operators have established customers. See this facility as something to process Amazon's regional customers.

Oklahoma City continues to grow. Our city lost a ton of talent from 1970-1990 before the MAPS initiatives yet it's amazing to see the moderate growth in that 20 year period. Despite all the technological advances, transportation centers (UPS, FedEx, Amazon) continue to expand in our city.

You're beginning to see Will Rogers World Airport's potential on its massive 8,081 acres and facilities that surround the airport complex. In 2018, the state's busiest airport handled 4.34 million passengers, marking the busiest year on record two years in a row.

mugofbeer
03-03-2019, 02:08 PM
I'm trying to understand how you all feel Amazon has operated in an unethical way by opening a screen printing facility? This, l believe, is a national facility to do large scale work. l doubt it will have much impact on local retailers.

dankrutka
03-03-2019, 02:12 PM
I'm trying to understand how you all feel Amazon has operated in an unethical way by opening a screen printing facility? This, l believe, is a national facility to do large scale work. l doubt it will have much impact on local retailers.

For me, it's not about this specific issue, but how the company on the whole operates and threatens the market in general.

OKC Guy
03-03-2019, 02:30 PM
All good comments. I mainly asked an opened ended question where the answer won’t be known for some time.

I don’t think anyone accused them of being unethical either. Its ok to question how they impact local jobs and business thats not an ethical question its a business question.

If they have designers then they will go after business. They won’t just twiddle their thumbs waiting for work. Its a double edged sword possibly. If they can print 10,000 shirts for 50 cents less thats $5,000 saved for one business. If they take that work away from a local screenprinter thats way more than $5k lost plus taxes of HQ (Amazon based out of state and locals based here pay other taxes that Amazon will pay another state).

Also will be curious if Thunder ever use them for playoff shirts in future.

jonny d
03-03-2019, 03:27 PM
For me, it's not about this specific issue, but how the company on the whole operates and threatens the market in general.

So you would say no to them moving operations here? Can't have your cake and then try to eat it, as well.

dankrutka
03-03-2019, 04:15 PM
So you would say no to them moving operations here? Can't have your cake and then try to eat it, as well.

Well, I haven't stated my opinion on that topic, but since you asked... I'm not opposed to Amazon going anywhere, but I think they (a) operate using monopolistic/predatory/unethical methods, (b) demand huge incentives to move everywhere that I think are often unnecessary, and (c) treat their workers like garbage. Many of these issues are much larger than Amazon so I don't really care where Amazon opens operations, but I think all these issues should be addressed for all companies, but particularly Amazon since they are more egregious than most.

As an individual consumer, I'm going to quit using Amazon. As a citizen, I will advocate for policies that reign in what I see as threats to both the marker and workers.

So, I guess I would respond to your metaphor that I'm more concerned about the entire cake industry and that the cake employees get their slice. But, yeah, I wouldn't cry if OKC didn't get Amazon facilities that produce low quality jobs while destroying better jobs around the country.

Pete
03-03-2019, 04:19 PM
They do a very, very good job which is why they are absolutely killing it.

But you can feel a backlash building, similar to when Walmart first became a giant.

Will be interesting to see how this plays out.


I can tell you as a small business order, Amazon Prime is fantastic. We don't keep many things in stock because we can always get whatever we want in 1-2 days. And we don't have to waste important time going to pick something up.

They simply do it better than anyone else and they always seem to be improving/innovating.

Mel
03-03-2019, 04:35 PM
Several decades ago, we fought to break up the Monopolist Companies. Once again, we are letting them grow back.

Laramie
03-03-2019, 04:46 PM
Several decades ago, we fought to break up the Monopolist Companies. Once again, we are letting them grow back.

Will admit that a conglomerate like Amazon have impacted the closing of many malls and large shopping centers.

Pete
03-03-2019, 04:58 PM
Amazon still only has 5% of the total retail market in the U.S. and of course well less than that worldwide.

Retail is still highly fragmented and hard to imagine that is ever going to shift in a major way.

Laramie
03-03-2019, 05:45 PM
Amazon still only has 5% of the total retail market in the U.S. and of course well less than that worldwide.

Retail is still highly fragmented and hard to imagine that is ever going to shift in a major way.

Let me correct that Pete, not just Amazon, but the whole online shopping experience; it seems as though shoppers are making lots of online purchases. Recall when you had to wait two or three weeks to receive a package--then you didn't know what might arrive, your actual order or the Captain's choice. Ads made items appear bigger than they were.

A 6 oz jar was made to look like it had 18 ounces or Grandma had spider monkey hands.

hoya
03-03-2019, 06:03 PM
Will admit that a conglomerate like Amazon have impacted the closing of many malls and large shopping centers.

That's because Amazon provides a much better service. People wouldn't use them if they weren't cheaper and/or more convenient.

d-usa
03-03-2019, 07:42 PM
To me it feels like the places that Amazon is hurting the most are not small mom-and-pop stores, but just other huge companies. The companies that are competing well are those that offer more than shopping.

There really is not much reason for me to go to a store “just to shop”. If I know what I need, and I can get it cheap and fast, then why not get it from Amazon and delivered to my house. It’s not like getting bulk toilet paper is some sort of experience I’m missing out on by not going to Walmart or Target, especially since I usually end up checking out myself and entering my own payment at a big box store as well as online. If I wanna browse, I still go to a local big box store. But for stuff I don’t need right now and want to save a little money, I go online.

But the stores that offer more than shopping are those that offer connections, experiences, and good customer service. Trader Joe is a good example at a store that does well against the online trend. Local stores that specialize still have a strong place in my life. Shaving supplies, board games, vegetables from a CSA, etc.

Stores that operate on the simple “we have crap you need, you have money we want” model are hurting, but stores that operate on a “we have a lifestyle” or “let’s have a relationship” model are doing better.

mugofbeer
03-03-2019, 08:31 PM
Will admit that a conglomerate like Amazon have impacted the closing of many malls and large shopping centers.

Perhaps we simply had too many stores, shops and malls. As devils advocate, all they did was present an alternative shopping method that appeals to todays shoppers. lts like saying microsoft used unethical methods because they presented an alternative to the manilla folder industry.

DallasOkie086
03-04-2019, 08:17 AM
Amazon will likely lose money on this venture for years to come. Remember, they make most of their money selling server space. Using mid markets like OKC to find lower wage employees (compared to NYC) would be my only complaint. However, throughout my short life, i can already think of several people who can benefit from jobs like these.

As for this screen printing business, it feels like this would be more beneficial to small orders than larger jobs. Relationships are still a valuable tool in business and i doubt Amazon being an option would unseat those established relationships right away.

jedicurt
03-04-2019, 08:22 AM
Will admit that a conglomerate like Amazon have impacted the closing of many malls and large shopping centers.

malls were starting to die back when Amazon was only selling books...

John Knight
03-04-2019, 08:54 AM
Well, well, well... It seems Amazon wants to bout huh? LOL :p

I am honestly not surprised at this news. However, I do love a good challenge so bring them on!

jedicurt
03-04-2019, 08:59 AM
Well, well, well... It seems Amazon wants to bout huh? LOL :p

I am honestly not surprised at this news. However, I do love a good challenge so bring them on!

hahaha... i was actually waiting for your response! lol nice

John Knight
03-04-2019, 09:08 AM
hahaha... i was actually waiting for your response! lol nice

Nice! This will definitely hurt a lot of local/regional print shops. Customer service is paramount.

BDP
03-04-2019, 02:14 PM
Nice! This will definitely hurt a lot of local/regional print shops. Customer service is paramount.

I'd be hesitant to hand my creative over to Amazon, anyway. No way I'm going to them over a local shop.

bombermwc
03-04-2019, 02:21 PM
I'd be hesitant to hand my creative over to Amazon, anyway. No way I'm going to them over a local shop.

I bet they can do it for far cheaper though with their economy of scale. Which translates to profit.

BDP
03-04-2019, 02:46 PM
I bet they can do it for far cheaper though with their economy of scale. Which translates to profit.

Well, after looking at it, it sounds like this is for selling to Amazon customers, anyway. Which, for apparel, Amazon takes about 15% off the top, and that's before any pay-for-placement campaigns. Amazon is a huge margin killer, which translates to less profit. The worst part is that Amazon considers the buyers their customers, not yours, so you're not "allowed" to re-market to them or even communicate with them outside of their proprietary system. I guess if you need them for volume, it can make sense for some, but that's a lot of ground to make up at 15% a pop with limited opportunities to convert them to your customer instead of theirs.

bombermwc
03-05-2019, 07:50 AM
Well, after looking at it, it sounds like this is for selling to Amazon customers, anyway. Which, for apparel, Amazon takes about 15% off the top, and that's before any pay-for-placement campaigns. Amazon is a huge margin killer, which translates to less profit. The worst part is that Amazon considers the buyers their customers, not yours, so you're not "allowed" to re-market to them or even communicate with them outside of their proprietary system. I guess if you need them for volume, it can make sense for some, but that's a lot of ground to make up at 15% a pop with limited opportunities to convert them to your customer instead of theirs.

To their point, what you are paying for (and what you get) is the popularity of the store. So you're more likely to attract searches via Amazon than other outlets. I know Amazon is a money scrooge that treats its employees poorly and isn't exactly a bastion of good capitalism. But what they do have is volume and thus economy of scale and a ridiculous popularity as a source for goods. So yeah it sucks for the small guy in that you dont get the margin you were probably after, but that's Amazon making their buck on you in that 15%. It's a trade that each partner has to decide if it's worth it. The potential volume is where it comes up for you though. Your ability to sell all across the U.S. (or more) compared to partnering with say U.S.A. on Meridian, skyrockets. Fingers crossed that the sales skyrocket as well.

baralheia
03-05-2019, 06:29 PM
Amazon has been experimenting with Print-On-Demand apparel for a while now... After they acquired Woot.com several years back - along with Woot's much-loved community-sourced t-shirt business - they began opening up the catalog of older, out-of-print t-shirts by using a digital printing tech instead of the traditional screen printing tech that their first-run shirts use. It would not surprise me in the slightest if shirt.Woot's back catalog starts being printed at these facilities.

mugofbeer
03-05-2019, 10:18 PM
Several decades ago, we fought to break up the Monopolist Companies. Once again, we are letting them grow back.

LETTING them grow back? How do you propose a company that does an excellent job of what it does be legally kept from growing? People buy things from them. They sell things to people. How is that a reason to keep them from operating?

catch22
03-05-2019, 10:22 PM
LETTING them grow back? How do you propose a company that does an excellent job of what it does be legally kept from growing? People buy things from them. They sell things to people. How is that a reason to keep them from operating?

To be fair though, they have received hundreds of millions, if not billions of taxpayer dollars in the form of incentives from cities across the country. If they had to pay market rate for their growth they would be a much smaller company.

mugofbeer
03-05-2019, 10:32 PM
I'm not sure l agree. All those incentives you speak of were individual decisions of each of those communities because they see the incentives as an investment. If the demand is there for a company to expand, why would they not? In any case, incentives have nothing to do with arbitrarily preventing a company from operating normally.

dankrutka
03-05-2019, 11:23 PM
LETTING them grow back? How do you propose a company that does an excellent job of what it does be legally kept from growing? People buy things from them. They sell things to people. How is that a reason to keep them from operating?

In many cases, these companies aren'y just growing, they're destroying competition in ways that ultimately harm the market and lead to anti-capitalist monopolies. Facebook buys or integrates features of any successful social media platform that has any success, thus it is nearly impossible for social media alternatives to compete. Amazon runs companies under by using their immense resources to sell specific products way under market value, kill competition, and then raise prices. This isn't companies just being good and it's not capitalist. These are are predatory and destructive behaviors. I'm not saying Amazon does this in every aspect of their operations, but they target specific markets and use their immense power to destroy competitors. In the end, consumers end up with less options.

Quicker
03-05-2019, 11:29 PM
In many cases, these companies aren'y just growing, they're destroying competition in ways that ultimately harm the market and lead to anti-capitalist monopolies. Facebook buys or integrates features of any successful social media platform that has any success, thus it is nearly impossible for social media alternatives to compete. Amazon runs companies under by using their immense resources to sell specific products way under market value, kill competition, and then raise prices. This isn't companies just being good and it's not capitalist. These are are predatory and destructive behaviors. I'm not saying Amazon does this in every aspect of their operations, but they target specific markets and use their immense power to destroy competitors. In the end, consumers end up with less options.

Walmart’s been doing it for decades... It’s nothing new and it’s not gonna stop...

RustytheBailiff
03-06-2019, 12:25 PM
In many cases, these companies aren'y just growing, they're destroying competition in ways that ultimately harm the market and lead to anti-capitalist monopolies. Facebook buys or integrates features of any successful social media platform that has any success, thus it is nearly impossible for social media alternatives to compete. Amazon runs companies under by using their immense resources to sell specific products way under market value, kill competition, and then raise prices. This isn't companies just being good and it's not capitalist. These are are predatory and destructive behaviors. I'm not saying Amazon does this in every aspect of their operations, but they target specific markets and use their immense power to destroy competitors. In the end, consumers end up with less options.

I'n not sure, but I think that's called the Free Enterprise System....

catch22
03-06-2019, 03:27 PM
I'm not sure l agree. All those incentives you speak of were individual decisions of each of those communities because they see the incentives as an investment. If the demand is there for a company to expand, why would they not? In any case, incentives have nothing to do with arbitrarily preventing a company from operating normally.

If you’re buying a GeeWhiz machine and Gadgets Inc has it for $1,000, and Gizmoz Inc. has it for $1000 with a $200 rebate which one are you going to walk in and buy? If neither were offering a rebate, would you still buy? Probably. It’s free money (lowers their costs) as far as Amazon is concerned.

Pete
03-09-2019, 06:23 AM
Another great bit of reporting by the Oklahoman. :rolleyes:

Doesn't even mention OKCTalk or the fact that Amazon has filed a building permit with detailed plans. (Do they even know how to do research and submit open records requests?)

I suspect the broker is playing a game of semantics here; not wanting to mess up a deal that is that is basically done but not 100% finalized and of course, the reporter trying to dismiss our work simply because he doesn't have the ability or work ethic to go out and get information on his own. Merely relies on what one person tells him, scrambling around after we break yet another story; one they would never know about if not for our work.

Anyone want to take a bet on how this turns out?

**************

Warehouse still available for lease (https://newsok.com/article/5625301/warehouse-still-available-for-lease?earlyAccess=true)
BY RICHARD MIZE

Amazon has not leased the warehouse at 6101 SW 44 for a made-on-demand facility, according to the brokerage team marketing the property for the Tulsa-based developer.

“CBRE is marketing this space for lease on behalf of the landlord, Industrial Developers of Oklahoma. At this time, 100 percent of the building is available for lease,” Jason Hammock, vice president at CBRE, said Friday.

Contrary to a recent report published on a local business blog, Hammock said Amazon officials have not signed a contract for the building. Neither Amazon nor Industrial Developers of Oklahoma responded to requests for comment.

While Amazon has not signed a contract, that doesn't mean a deal won't be struck.

TheTravellers
03-09-2019, 12:44 PM
Wow, so they actually published a story with apparently the sole purpose of contradicting OKCTalk's reporting (which we know is pretty much beyond refute), they're hitting new lows (again)...

Mel
03-09-2019, 01:11 PM
LETTING them grow back? How do you propose a company that does an excellent job of what it does be legally kept from growing? People buy things from them. They sell things to people. How is that a reason to keep them from operating?

Several have answered this more eloquently than I would. It is, already, huge and hungry. It's not so much the now, It's the what may be, that bothers me.

d-usa
03-09-2019, 06:07 PM
OKCTalk: not news, just a business blog.

Someone a bit jealous about getting beaten to many news?

mugofbeer
03-09-2019, 10:23 PM
Several have answered this more eloquently than I would. It is, already, huge and hungry. It's not so much the now, It's the what may be, that bothers me.

OK. That doesn't answer my question. It's just an expression of the Big Is Bad thing.

Laramie
03-10-2019, 01:29 PM
OKCTalk: not news, just a business blog.

Someone a bit jealous about getting beaten to many news?

...and they have been beaten on many occasions by a one man wrecking crew.

Mr. Blue Sky
03-12-2019, 10:31 PM
...and they have been beaten on many occasions by a one man wrecking crew.

A one-man reckoning crew is more like it.
The Oklahoman still doesn’t know how to deal with competition.

Pete
03-20-2019, 07:57 AM
Amazon has pulled its building permit application for this proposed facility.

They also had their PR firm contact me and said they would be sending a statement, but that was a week ago and I've yet to receive anything.

hfry
03-20-2019, 08:07 AM
I've seen that they are parking their delivery vans outside a huge warehouse at Broadway and 33rd in Edmond( next to railroad tracks) so I wonder if they found a different location?

Pete
03-20-2019, 08:10 AM
I've seen that they are parking their delivery vans outside a huge warehouse at Broadway and 33rd in Edmond( next to railroad tracks) so I wonder if they found a different location?

I don't think so, I believe they just weren't ready for the news to get out.

I fully expect some sort of denial, no matter they have spent tons of time and money on creating detailed building plans.


The place in Edmond is likely a delivery hub.