‘Why some brands are letting Amazon handle their e-commerce operations’ – Marketing Land
Ginny Marvin says, “By one estimate, nearly 40 cents of every dollar spent in the US on online purchases is spent on Amazon. Some 65 million Prime members spend an average $1,200 a year on Amazon. This eclipse of one marketplace over the orb of e-commerce has forced brands big and small to reevaluate where to put their energies and invest their resources.
Amazon’s scale, coupled with consumer trust and one-click shopping, has proven a potent combination. The sales volume can be intoxicating, outweighing margin hits from seller fees and advertiser costs paid to Amazon.
Amazon’s dominance has led smaller brands to rethink the role of their own sites. Some have forgone e-commerce on their sites entirely, giving up control of the customer in exchange for having sales and fulfillment operations managed by Amazon. Others have stuck with a multichannel approach, while continuing to weigh how they allocate their resources. Here’s a look at how several smaller online brands have been adapting.
The site as a window to Amazon
“The energy we were spending to drive customers to our own e-commerce site was being outpaced by organic traction on Amazon due to our best-seller status and owning the Buy Box,” said Teacher Peach founder, Randi Brill, during a phone interview”.
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