Brands and 3rd party retailers — the companies and stores that curate selections of different brands — originally found Amazon to be a quick and simple fix to opening up an online presence. Amazon’s initial impartiality made the platform an ideal place for upstarts looking to find consumers with high purchase intent.
Now that Amazon has gone full steam ahead on launching their private label brands as well as going direct to brands, it’s morphed into a competitor to the retailers on its platform.
Now with about 100 brands ranging from office supplies (AmazonBasics) to men’s underwear (Good Brief) and kids clothing (Spotted Zebra), Amazon is slowly consuming a massive portion of the e-commerce industry.
49 cents of every dollar online, or 5% of all retail, is spent on Amazon.
While building out their private label offerings, Amazon continues to cut out 3rd party retailers that make up the majority of their revenue and, instead, go directly to suppliers.
Retailers need to double down on the one thing that Amazon can’t offer — the brand experience.
One of the shortcomings of being a company that sells everything to everyone is the inherent lack of identity around specific segments—only an independent brand can focus on specific customer segments, and connect and form relationships with their customers around their specific needs. Amazon is forced to feel more generic, relying on the platform’s ability to deliver everything to everyone.
E-commerce companies have found success when community building is a pillar of their marketing strategy. From social media, to email, to in-store, the way that customers interact with a brand has become immersive. Glossier, for instance, recently announced they’ll go as far as developing their own social media network, where customers can connect and interact with each other as well as the company.
2. Convenience & Predictability
These core principles have been a tentpole for Amazon and, with over 100 million subscribers and ~50% of the US e-commerce industry, brands need to meet these new customer expectations.
With 60% of consumers saying they’ll buy their goods from one online retailer over another if they offer more convenient delivery options, being able to do some affordably and at scale is essential. Luckily, Deliv is here to help. Deliv is the leader in the outsourced same day delivery space, where a business of any shape and size can begin leveraging a vast network of delivery drivers and, in turn, offer the customer experience that consumers are expecting.