Does Amazon Want to Kill Your E-commerce?

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shakilhasan15
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Joined: Wed Dec 04, 2024 4:39 am

Does Amazon Want to Kill Your E-commerce?

Post by shakilhasan15 »

Is Amazon aiming to kill the profitability of your e-commerce?

I asked myself this question after one of the participants in the SEO course for e-commerce held at the comparator trovaprezzi.it , told me "in the last three years with Amazon I have increased sales a lot, however doing the math I don't earn anything, I'm only moving bottles... the problem is that today Amazon for me weighs 78% of the total sales of the company and if I leave tomorrow in the short term I close".
In this article I provide a medium-term solution applicable to Amazon and major merchants (including ebay and aliexpress).


Amazon's Strategy
Warning: Amazon does not think like an online shop, nor is it financed by the bank or the savings of the entrepreneur. Jeff Bezos's declared goal is to create an online supermarket where you belgium telegram phone number list buy everything at the best price. The idea is similar to that of Sam Walt (owner of Wal Mart, the American giant of large-scale distribution), with 3 important differences: Jeffrey Bezos wants to do it on a global scale, exploiting the potential of Digital and getting financed by the American stock exchange which allows him to be at a loss and continue to grow in terms of market value.
This last point is fundamental: Amazon does not have to earn this year like any "unlisted entrepreneur", it wants to acquire market shares as a monopolist and accustom the modern consumer to buying on Amazon as the first option of choice. We all know how difficult it is to change our habits: Amazon aims to establish a strong purchasing routine that makes it "the default option" in terms of time and price for the consumer.

Source: nasdaq http://www.nasdaq.com/it/symbol/amzn/in ... ttype=line

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The solution
If you are farsighted, you have perceived that Amazon thinks in a way that makes your online business and your profitability unsustainable in the medium term. If Amazon (and all the other merchants where you do not control the server and the customer) is a partial slice of your business (let's say less than 25% of your total sales) and you do the rest directly on your store thanks to SEO, comparators, Sem, e-mail marketing ... you probably have an e-commerce strategy that is sustainable in the long term.

If instead every year the percentage weight of merchants grows and they develop more than half of your business, concentrating your business on a few intermediaries that you have no control over and that impose unsustainable pricing, you are killing your e-commerce.
Today even more than a few years ago, you need to be strong on Digital marketing, SEO, e-mail marketing. If you want to survive well against these digital giants, eat everything.
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