This time of year many eCommerce store owners are busy on many fronts; handling an increase in customer calls, processing the influx of holiday orders, juggling inventory to make sure stock levels are adequate for the rush, and bitching about Amazon.
While the bitching about “Big A” goes on every day, it’s more pronounced during the holidays when more people are shopping online and comparing giant Amazon’s pricing to the much smaller online retailer. If you are an eCommerce owner, then chances are you have heard about Amazon restricted/gated categories. Y You can sell on there, but sometimes you need Amazon’s permission to do so for specific products and in most cases, it is recommened to get help from a Brand protection agency. Visit ungatingamazon if you are looking for help with amazon and to find out its restricted and gated Categories List.
I hear the complaints every day and for the most part they never change:
“I can’t understand how they are selling this item at that price, I lose money at that price.”
“Customers expect me to ship their order for free because Amazon does it.”
“This lady is screaming at me because she needs this item and it’s cheaper at my store, but she can get it in two days from Amazon for only $2.99 shipping and my shipping cost is $17.”
I’m going to be harsh here, but I’m being harsh for a reason… it’s time for a dose of reality.
No eCommerce store can successfully compete with Amazon.
They are always going to have some sort advantage over the small retailer – whether online or a traditional bricks-and-mortar. Before you say, “Scott you’re crazy,” lets consider the facts:
- Amazon has more buying power with suppliers than you do.
- Amazon ships more packages than anyone and gets discounts from carriers you can’t even fathom.
- Amazon can sell products at a loss, should they choose to, because they have the financial means to do so.
- Amazon has an advertising budget that is far more than your annual sales and then some.
And let’s not forget one very important fact:
- Amazon wants to dominate retailing and if you don’t think they already do, think again.
Now it’s not impossible to compete against Amazon, in fact retailers do it every day, just not successfully. They are always going to take a sale, sell an item for less, and win customers over with shipping offers that others simply can’t do.
I can list a dozen different things store owners can do to add value to the transaction that could potentially win over a customer determined to go for the lower price and order from Amazon, but you already know what those things are and you’re probably doing them every day – you just don’t realize it.
But there is one important thing that all retailers need to keep on their minds every day: Amazon isn’t going anywhere.
They will always be your competition.
They will always be a sore spot for you.
They will always take a sale from you.
They will always play on a field that is not level and will make up the rules of the game as they go.
It’s time to accept that facts and concentrate more on running your business, servicing your customers, and having your sights set on being the second largest eCommerce business out there – because that number one spot isn’t being vacated anytime soon.
Best wishes for the remainder of the busy shopping season!