By Martin Heubel, Amazon Strategy Consultant at Consulterce
Most brands view Amazon as just another sales channel.
Here’s why that’s a dangerous mistake:
50% of shoppers start their product search on Amazon
You can’t ignore a sales channel where shoppers learn about your product, brand, and category…every day.
If you leave the Amazon channel up to distributors or wholesalers for fear of price erosion, you’re hurting your brand more than you think.
Even Apple could no longer ignore the online retailer and reached an agreement a few years ago to sell its range directly on Amazon.
Amazon offers economies of scale
Selling on Amazon 1P offers the advantage of a consistent selling experience. Tools, processes and management structures are largely identical across markets. This allows large organisations to benefit from cost advantages only available with 1P Vendor Central.
Linking global management teams with Amazon’s Global Vendor Management, launching simultaneously in different markets or importing your goods directly from China to the US/EU through Amazon.
There is no other retailer that truly operates on this global level.
Traditional retailer strategies will fail
Treating Amazon like any other retailer is still the number one mistake many brands make. They think that listing their products and funding price discounts will lead Amazon to grow their account.
The problem is that Amazon is an automated marketplace, whether you sell on Vendor or Seller Central.
This means that the task of expanding the business profitably sits with the brand. Not with Amazon.
For further information and support, contact Martin Heubel here
