Is Amazon A Threat To E-commerce?

Amazon has come a long way from its humble beginnings as an online bookseller. Since its launch in 1994, Amazon has grown to become an e-commerce behemoth. These days, it’s one of the first places shoppers turn to buy anything from cleaning products to the latest tech gadgets.

E-commerce has evolved in the last 20 years, but it was Amazon that did the most to alter how we buy, sell, and transact. It has been among the most innovative and claims most of the e-commerce market. Any e-commerce business, regardless of where they start, can learn from Amazon’s example to grow their business and attract and retain more customers.

Amazon has surely changed the way we view online shopping and e-commerce as a whole but how can small and medium-sized businesses compete with the online giant? Amazon sells more than 12 million different products, from baby formula to rare coins. This means it is extremely easy to compare a product from different retailers (and see reviews) in a way that was impossible in person or on a branded website.

With more than half of all product search starting

on Amazon, third-party sellers are taking

advantage of this fact. 

We are not saying the below is negative, but this is what many branded websites and their customers experience:

  • Loyal to brand customers mainly
  • Limited product offering
  • No or few product reviews with limited detail
  • The price you see is the price you pay

While customers may experience the following on Amazon:

  • A vast and varying product offering
  • Prices vary from seller to seller
  • Regular Deals, Promotions, and Savings

So, is Amazon a threat to E-commerce as we know it?

Answer… Absolutely Not! 

Despite the fact that more than half of all product searches begin on Amazon, there is and always will be a place for your website in the e-commerce world. The bottom line is, each consumer is different and cannot be grouped together entirely. So, while more than half go to Amazon, the rest may be going to your website or to Google for information but this is where your digital marketing strategy comes into play.

Amazon plays a vital role in e-commerce but should not be your only egg and your only basket. We believe in diversifying your presence by offering all of your products on your website as there are little/no storage fees (short term and long term) which means, you stand to make a bigger margin of profit but the traffic may be low. Amazon charges storage fees (FBA) which may reduce profit margin but brings millions of converting customers to their platform every month.

A well-rounded e-commerce/digital marketing strategy would include Amazon in your strategy without taking away from an existing channel and let the two work harmoniously together to achieve the ultimate goal, sales.

If you require assistance with your e-commerce strategy and Amazon presence, find out more about what we can do for you by visiting our services page and contact us to discuss your future on Amazon. Call us on +44 20 8080 0505 or email us on contact@rt7digital.com