What if Amazon Is The Best-positioned Company to Diversify Sellers Off Amazon?
What if Amazon Is The Best-Positioned Company to Diversify Sellers Off #Amazon?
Ok this might be crazy, but follow me.
1 - Who knows Amazon sellers better than Amazon itself? They have the data, they have the analytics.
You can also pretty much guess they have an internal index of the top 1000 brands globally and pricing up to the minute.
2 - Their (display) advertising business has been moving in the direction of allowing you to advertise not only on non-Amazon websites, but also to advertise non-Amazon properties.
3 - Amazon Multi-Channel Fulfillment (MCF) has been quietly signing up partnerships with eCommerce platforms, such as BigCommerce. But likely those partnerships are not enough on their own to drive enough volume through their facilities.
Amazon tends to like to control its own volume fueled by its flywheel, rather than rely on things like sales teams and extensive marketing.
4 - Amazon recently doubled its fulfillment capacity in the last 2 years. Amazon's business didn't double in the past two years.
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It's clear to me the purpose of this capacity is for third-parties, not Amazon itself. And since DTC is growing faster than Amazon, it would make sense this is where the capacity is aimed at.
Most businesses need to be on Amazon, and it's a significant channel. Which means you need to optimize imagery, video, and content. All things which need to be on your brand website too. Imagine all your A+ content was also on your own store?
And Amazon had the lowest fulfillment prices in the industry that would fulfill to multiple channels without Amazon branding?
Amazon seems to have abandoned its "One Vendor" initiative from years ago to combine 1P and 3P tools, but what if they resurrected that and the hub is instead not Amazon, but a true multi-channel store that supports both retail (1P) and D2C?
What do you need to succeed in eCommerce? Advertising Payments Supply Chain
Who has the largest of all of these in one place? Amazon.
Their biggest gap is somewhat simple - tools to help you present your brand. But then again, Amazon acquired Perpule and Selz in the last 2 years.
Sounds like something to keep an eye on.
