{"id":26765,"date":"2021-06-11T14:36:43","date_gmt":"2021-06-11T14:36:43","guid":{"rendered":"https:\/\/www.customerservicemanager.com\/?p=26765"},"modified":"2022-10-05T14:52:15","modified_gmt":"2022-10-05T14:52:15","slug":"in-retail-today-theres-only-one-way-to-avoid-becoming-another-amazon-warehouse-supplier","status":"publish","type":"post","link":"https:\/\/www.customerservicemanager.com\/in-retail-today-theres-only-one-way-to-avoid-becoming-another-amazon-warehouse-supplier\/","title":{"rendered":"In Retail Today, There\u2019s Only One Way to Avoid Becoming Another Amazon Warehouse Supplier"},"content":{"rendered":"<img decoding=\"async\" loading=\"lazy\" class=\"aligncenter size-full wp-image-26768\" src=\"https:\/\/www.customerservicemanager.com\/wp-content\/uploads\/2021\/06\/Alexander-Graf.jpg\" alt=\"Alexander Graf\" width=\"595\" height=\"443\" srcset=\"https:\/\/www.customerservicemanager.com\/wp-content\/uploads\/2021\/06\/Alexander-Graf.jpg 595w, https:\/\/www.customerservicemanager.com\/wp-content\/uploads\/2021\/06\/Alexander-Graf-300x223.jpg 300w\" sizes=\"(max-width: 595px) 100vw, 595px\" \/>\n<p><strong>E-commerce expert Alexander Graf explains how to avoid becoming a logistics company for Amazon or Alibaba.<\/strong><\/p>\n<p>In late April, Amazon told Wall Street it had recorded a record quarter with sales up 44%, hitting $108.5 billion. If it were a standalone state, Amazon would now be in the top 25 countries worldwide by GDP.<\/p>\n<p>It\u2019s notable that Amazon isn\u2019t actually a retailer at all. A large contributor to that impressive bottom line is its \u2018<a href=\"https:\/\/services.amazon.co.uk\/services\/fulfilment-by-amazon\/features-benefits.html\">Fulfilled By Amazon<\/a> (FBA)\u2019 service, with non-Amazon retailers representing around 60% of all sales on the platform. Amazon is a kind of logistics company\u2014and one that wants to have everything in stock at any given time. If the customer journey begins at its online door, then the customer immediately stops searching for a product or brand the way they traditionally used to do when we shopped from physical shops or at the first generation of online retailers.<\/p>\n<p><strong>Shopping by stars and reviews<\/strong><\/p>\n<p>If customers have a specific problem or need they want to address, such as the need for a giant TV, a tennis racquet and a new pair of trainers, they now search for that \u2018solution\u2019. And the way to meet that particular requirement is not by being guided by a brand anymore, but by stars and reviews. Whenever a retailer sells via Amazon or via Alibaba, they become a logistics company offering a product on someone else\u2019s platform for the best price. Reduced to that ignoble function, it doesn\u2019t make sense to think of hot and cold funnels or customer journeys. In this new, tough world of e-commerce, retailers need to instead become the hot destination for specific customer concerns. If you don\u2019t own customer access online, then you are at risk of becoming merely a contributor to Amazon or Douglas or the Hut Group\u2019s bottom lines. The brand has no perceived value anymore, because the brand has been replaced by the quantity of stars and the number of user reviews.<\/p>\n<p>The lesson here is that owning that customer access is all important. And the ownership of customer access only can be done by superior customer experience. This is controlled by <em>how<\/em> you&#8217;re selling, not by <em>what<\/em> you&#8217;re selling, and 90% of that is due to approachable personalisation. You as a retailer are better in rolling out new features than anyone else; you&#8217;re able to talk to the customer on Messenger, WhatsApp, Telegram, Signal etc.; you\u2019re able to offer individual prices or provide individual coupons that are completely tailored to my unique needs.<\/p>\n<p><strong>The non-standard, personal touch<\/strong><\/p>\n<p>Clearly, there\u2019s a delivery angle here. If it\u2019s not about the \u2018what\u2019 you are selling anymore and only about the \u2018how\u2019, then legacy monolithic systems that do not flex with your business will not be a good fit. This level of personalisation requires a modern, agile tech infrastructure. These monolithic systems make assumptions about your business model before bringing any e-commerce campaign to life. They are systems suited to environments where planning is key, but right now, rapid adaptation is the best policy.<\/p>\n<p>Amazon will continue to do amazingly well. It\u2019s the absolute global leader at a particular sort of corporate selling. But in Jeff Bezos\u2019 own words, \u201cThird-party sellers are kicking our first-party butt. Badly.\u201d<\/p>\n<p>The real way to beat Amazon is to think and be different. Your customers are the ones who refuse to buy from Amazon for ethical reasons, for example. Or they are consumers who want greener, more differentiated, more organic or better sourced products. This is the market that Amazon can\u2019t help, and your company should.<\/p>\n<p><strong>About the Author<\/strong><\/p>\n<p><a href=\"https:\/\/www.linkedin.com\/in\/alexandergraf\/\" target=\"_blank\" rel=\"noopener\">Alexander Graf<\/a> is Co-Founder &amp; Co-CEO of Berlin-based marketplace experts<a href=\"https:\/\/spryker.com\/en\/\" target=\"_blank\" rel=\"noopener\"> Spryker<\/a> and author of<a href=\"https:\/\/www.barnesandnoble.com\/w\/the-e-commerce-book-alexander-graf\/1124299297\" target=\"_blank\" rel=\"noopener\"> The E-Commerce Book<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In today&#8217;s retail world, the real way to beat Amazon is to think and be different. E-commerce expert Alexander Graf explains how to avoid becoming a logistics company for Amazon or Alibaba..<\/p>\n","protected":false},"author":556,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[87],"_links":{"self":[{"href":"https:\/\/www.customerservicemanager.com\/wp-json\/wp\/v2\/posts\/26765"}],"collection":[{"href":"https:\/\/www.customerservicemanager.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.customerservicemanager.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.customerservicemanager.com\/wp-json\/wp\/v2\/users\/556"}],"replies":[{"embeddable":true,"href":"https:\/\/www.customerservicemanager.com\/wp-json\/wp\/v2\/comments?post=26765"}],"version-history":[{"count":11,"href":"https:\/\/www.customerservicemanager.com\/wp-json\/wp\/v2\/posts\/26765\/revisions"}],"predecessor-version":[{"id":26778,"href":"https:\/\/www.customerservicemanager.com\/wp-json\/wp\/v2\/posts\/26765\/revisions\/26778"}],"wp:attachment":[{"href":"https:\/\/www.customerservicemanager.com\/wp-json\/wp\/v2\/media?parent=26765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.customerservicemanager.com\/wp-json\/wp\/v2\/categories?post=26765"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.customerservicemanager.com\/wp-json\/wp\/v2\/tags?post=26765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}