What I Expect From Amazon In 2021

eCommerce
Written By Rick Watson

What do I expect from Amazon in Q4 2020 and 2021? In Q4, I expect them to show some of the best unit profitability numbers in the company's history due to logistics utilization and inventory sell-through numbers higher than almost anyone else. For 2021, there are a couple of big things on the horizon:

  • If they don't get the vaccination gig, I expect Amazon to replicate its UK third-party logistics model in the US (after shuttering their pilot), becoming a first-class competitor to FedEx, UPS, and USPS - at least for small and mid-sized businesses and 3PLs with some connection to Amazon. The lowest hanging fruit is merchant-fulfilled volume and seller-fulfilled Prime volume. Which is a lot.

  • While Amazon Fresh has been rolling out steadily, expect that to continue to accelerate. Amazon is out for blood in grocery.

  • I expect some more big announcements upcoming in the Amazon Luxury/Fashion space. It's a key area of focus for the company. As the economy opens up later in the year, there could even be tie-ins to physical brand stores and high-end retailers who are struggling.

  • I honestly don't expect much Webstore news in 2021, and if there is, people will be underwhelmed. It will seem incremental. But it would be just the start.

Rick Watson

Rick Watson founded RMW Commerce Consulting after spending 20+ years as a technology entrepreneur and operator exclusively in the eCommerce industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry, and Pitney Bowes.

Watson’s work today is centered on supporting investors and management teams incubating and growing direct-to-consumer businesses. Most recently, in partnership with WHP Global, Rick was a critical resource in architecting the WHP+ platform, a new turnkey direct to consumer digital e-commerce platform that powers AnneKlein.com and JosephAbboud.com.

Watson also hosts a weekly podcast, Watson Weekly, where he shares an unbiased, unfiltered expert take on the retail sector’s biggest players.

In the past year alone, Rick has spoken at many in-person and virtual events as well as podcasts on topics ranging from retail/ecom to supply chain/logistics and even digital grocery including CommerceNext IRL, ASCM Connect, and Retail Innovation Conference.

https://www.rmwcommerce.com/
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