You’d have to live in the frozen tundra to know nothing about Amazon. Even then, it’s open to debate. The point is, Amazon continues to make a huge impact on the world. It changed how consumers shop and how brands sell and retailers compete. However, in spite of the brand awareness it enjoys, retailers and suppliers alike may find the Amazon maze difficult to navigate.
Retail and the Amazon Maze
Amazon’s prices, selection, and free shipping deals make it a formidable opponent, to say the least. Retailers in particular face a difficult challenge. However, according to a recent survey, 44% of retailers do not know how to respond to the “power of Amazon”, as Chain Store Age puts it.
Yet, 60% of those retailers see Amazon as at least somewhat of a competitor. How can a retailer compete with Amazon’s customer-centric pricing and service? The authors of the report suggest this comes down to using big data to fully comprehend their customers’ preferences in order to create a more personalized experience.
“To Amazon or Not To Amazon”
A small percentage of retailers found their way through the Amazon maze by using its marketplaces as part of their multi-channel strategy.
Thirty percent of the retailers in the cited surveyed sell through Amazon, a cash flow boon for the 9% who made half their sales on the Amazon Marketplace.
As one observer noted in The Street, some retailers opt to sell through Amazon because that’s where the customers are.
Finding Success on Amazon
So, if even retailers use Amazon to sell, the question remains: how does any brand use that channel successfully?
While some businesses make substantial (if not all) their sales through Amazon Marketplaces, most companies will use Amazon as part of a multichannel strategy. Following the Amazon maze to success means making the most out of your Amazon channel.
- Carefully choosing the products you’ll sell on Amazon (typically your the fastest moving products).
- Following Amazon’s packing and labeling rules to the letter.
- Optimizing stock levels to avoid certain storage fees if you use Fulfillment by Amazon.
- Making Amazon part of a multichannel strategy.
Are You Amazon-Ready?
Now that Amazon Australia will open (most likely in 2018) all these questions will become crucial to Australia and New Zealand businesses. Now is the time for retailers and brands down under to figure out their Amazon strategy.
That’s why Cin7 will hold a breakfast event on August 29 to ponder the question, Are You Amazon Ready? The event features special guest Chris Wilkinson, Managing Director of First Retail Group and an internationally known expert on the retail industry.
Click the button below to register, or Like us on Facebook and watch the live stream.