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Amazon’s Impact on Standalone Ecommerce Businesses

Amazon’s Impact on Standalone Ecommerce Businesses

May 12, 2022 By Walt wintertree Leave a Comment

Amazon has been dominating the online shopping market for more than a decade since its launch more than ten years ago. Amazon has had a significant impact on standalone ecommerce companies, changing their shipping policies and prices.

Let’s look at Amazon’s impact on standalone ecommerce companies. If your online business is not able to compete with Amazon, we’ll discuss ways to overcome this Amazon effect.

The “Amazon Effect”, explained

Amazon is a well-known name. It’s a marketplace where customers can shop for almost anything via Amazon-sponsored sellers or people who own their own ecommerce business through the marketplace. The so-called Amazon Effect, or the “Amazon Effect,” refers to the entire range of effects that the digital marketplace giant has had on the retail and ecommerce markets.

Ecommerce businesses with smaller sales channels will be more affected

Amazon’s main effect on the ecommerce market has been to make it more difficult for independent ecommerce businesses in today’s marketplace. Most consumers looking to purchase something online don’t search for specific brands or manufacturers. They simply visit Amazon and search the products they are interested in. The Amazon Effect also has other benefits:

Customers are demanding more

Many modern consumers have greater demands than ever before. These consumers may be more interested in:

Product variety. Product variety. Many standalone ecommerce sites don’t offer customer reviews functionality. Instead, they rely on third-party review websites such as Yelp and Google Reviews. Products are rated on accessibility. Many consumers are more concerned about the product’s quality than its overall appearance. They want to be able to find exactly what they’re looking for, even if it is made from cheaper materials.

These customers are often unaware of the capabilities of smaller, more focused ecommerce companies. These standalone ecommerce companies must adjust their marketing and customer reach strategies in order to ensure that shoppers visit their websites without unreasonable expectations.

Shipping Free of Charge or at a Discount

Many consumers expect cheap or free shipping to all orders, thanks to the Amazon effect. For many ecommerce businesses that ship products around the globe, this is not financially possible.

Shipping costs are high regardless of the product being shipped, which shipping carrier is used, and where it goes. Shipping costs are often covered by companies, although they may not always be able to pay for it, particularly in the beginning stages of their business.

Many modern shoppers consider Amazon’s free or cheap shipping standard a standard for their online shopping. It is up to smaller businesses to either meet or counteract this expectation.

Price Competition

The Amazon effect has also led to increased price competition among Amazon and other retailers as well as e-commerce stores. Amazon connects customers to the best vendors and retailers, often resulting in the lowest prices possible for the products they want.

This is impossible for smaller or independent ecommerce businesses. They must adhere to profit margins and price points in order to achieve revenue goals and cover business expenses. Small businesses often struggle to compete with Amazon solely because of their price points. Amazon is often the best place to find a quick and cheap product if a customer needs it.

How to overcome the Amazon Effect

Although the situation seems grim, there are still options if your online business is successful. There are a few smart strategies that can help you overcome the Amazon effect.

Optimize for Mobile Users

Start by optimizing your ecommerce store and site for mobile users. Mobile users account for more than half of all internet traffic. Streamlining your website to make it easy for mobile users will ensure that your customers have a pleasant experience shopping in your store.

This is the best way for Amazon to compete in terms of site functionality. Amazon’s website is still not the best for mobile shopping. Your site might be more user-friendly than Amazon’s, and people will buy items from your ecommerce store even though they have similar products at slightly lower prices.

You can leverage personalization everywhere

You can and should also take advantage of personalization strategies and tools. Amazon, for all its conveniences, is not an extremely personalized service. However, smaller ecommerce websites can. Personalization can be achieved by:

Email marketing to notify regular shoppers about sales or special products.Business texting to send personalized messages to customers one-on-1. Discounts or coupons given to shoppers after making an initial purchase. Product recommendations and advertisements online based upon products shoppers have viewed or bought on your site.

Increasing personalization can also increase brand trust.

Get Double the Discount on Exclusive Products/Offerings

This is the third strategy that can overcome the Amazon effect. It involves doubling down on unique products and services your ecommerce company has to offer. Amazon is a huge company, but it doesn’t offer many unique solutions or products.

It is impossible to replace or absorb your brand identity and unique ways you offer value to your customers. You must insist on this in all you do, from your marketing campaigns to your products and the quality of your products. Your chief compliance officer will help to ensure that your brand’s employees represent it powerfully and uniquely.

It’s actually smarter for standalone ecommerce companies to ensure that their products are of the highest quality possible. Many online shoppers will still pay more for top-quality products than cheaper and less reliable options on Amazon.

Summary

Amazon’s effects are wide-ranging, and can often be detrimental to standalone or small ecommerce businesses. It’s possible to overcome it. Keep in mind the strategies above and make sure your business stands out from Amazon in every way possible. You can still succeed in today’s market with the right mindset, and the right focus.

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By: Shanice Jones
Title: The Impact of Amazon on Standalone Ecommerce Businesses
Sourced From: www.volusion.com/blog/the-impact-of-amazon-on-standalone-ecommerce-businesses/
Published Date: Wed, 11 May 2022 15:05:00 GMT

Did you miss our previous article…
https://onlinemarketingagencies.net/?p=4296

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