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Building Sustainable B2C Retail Success in the Age of Amazon

Building Sustainable B2C Retail Success in the Age of Amazon
Written by publishing team

2020 was an incredibly successful year for Amazon.com. Work and home buying gave the e-commerce giant more market share and sales volume than ever before, with sales increasing 44 percent, to $108.5 billion. This wealth is equal to the wealth of a small nation. If Jeff Bezos were the president of such a country, he would score at number 25 in the list of the 25 richest countries in the world.

However, there is an interesting e-commerce component to Amazon’s success that often gets overlooked: the contribution of third-party sellers. With more than 1 million new sellers on Fulfilled by Amazon (FBA), non-Amazon sellers account for approximately 60 percent of all Amazon e-commerce sales. In Jeff Bezos’ own words, “Outside sellers resist the first party. badly.”

The brand has been raped by stars and reviews

Increasingly, the customer journey begins with a platform like Amazon. A customer is no longer searching for a product or brand the way consumers used to, in physical stores or by doing some general research through Google. Amazon’s strong sales numbers indicate that customers are increasingly buying directly from the online retailer, ignoring the brands’ online presence.

How this happened: The purchase is now seen as solving a problem. On the site, a selection of similar products is presented, and consumers choose the retailer that offers the best prices and availability. Customers’ needs aren’t influenced by the brand anymore, as they choose to shop based on stars and reviews as well as cater to specific retail needs. In this scenario, the retailer’s job is to be a convenient warehouse supplier.

When a retailer sells through Amazon or Alibaba, it becomes nothing more than a logistic company offering an item at the best price. In this model, it no longer makes sense for a standard brick-and-mortar company or online retailer to consider hot and cold funnels or customer journeys. In this new retail reality, the classic retailer has completely lost the traditional retail function.

Take ownership of customer access

Retailers need to make space for themselves. They should become the destination of choice for specific or niche retail requirements. Think of customers who demand greener, differentiated, organic, or better sourcing products. It’s the market that Amazon can’t help, and you should!

And the hub should be to have access to that client. Ownership of customer access can only be acquired through superior customer experience. You should be better at rolling out new features than anyone else; Better ability to talk with the customer on Messenger, WhatsApp, Telegram, Signal, etc.; Able to give individual prices or unique individual vouchers to the customer.

There is clearly an innovation angle here. If it’s not about the “what” you’re selling anymore and just about the “how”, the old monolithic systems that don’t fit your business won’t suit you well. This level of customization requires a modern and agile technical infrastructure. Monolithic systems make assumptions about your business model before reviving any e-commerce campaign. They were never intended to innovate quickly or adapt in the face of changing conditions, and that is an imperative now.

Unless you want to be a supplier in the Amazon logistics chain, you need a different and highly personalized approach to achieving B-to-C retail success. The positive news is that retailers do this every day. After all, it’s innovate or die… and go to Amazon’s supply chain “heaven.”

Alexander Graf He is the co-founder and co-CEO of Market Experts in Berlin sprayer and authore-commerce book. “

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